PPDS Course

• AP220 Production Planning and Detailed Scheduling
Release 3.0A 18.04.2001

AP220 Production Planning and
Detailed Scheduling
AP220
Production Planning
Detailed Scheduling
ã SAP AG 2001
n SAP APO
n Release 3.0A
n Februar 2001
n Materialnummer 50041881
(C) SAP AG AP220 0-1

Copyright
Copyright 2001 SAP AG. All rights reserved.

No part of this publication may be reproducedor transmitted in
any form or for any purpose without the express permission of
SAP AG. The information contained herein may be changed
without prior notice.
All rights reserved.
ã SAP AG 2001
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SAP Advanced Planner and Optimizer (APO)
Level 2 Level 2 Level 3

SAP R/3 SAP APO SAP APO
AP210 5 days
LO050 5 days
Demand Planning
PP - Planning and
Execution for Discrete
and Repetitive AP215 3 days
Manufacturing AP010 2 days
Supply
SAP APO Overview Network Planning
AP205 2 days AP220 3 days

Integration Master Production Planning/
Data Detailed Scheduling
AP230 2 days
LO060 5 days
Global ATP
PP-PI BC555 2 days
Process Manufacturing
liveCache
Administration
ã SAP AG 2001

Course Prerequisites
Prerequisites
l AP010 SAP APO Overview

l AP205 Integration of Master Data
Recommended
l LO050 Planning and Control for Discrete

Manufacturing and Repetitive Manufacturing
(or LO060 Process Manufacturing or other
knowledge in R/3 PP or PP-PI)
l AP215 Supply Network Planung
ã SAP AG 2001

Target Group
Target Group
Project team members responsible for the creation and

optimization of detailed production schedules in a short-
term horizon
Duration
3 days
?
ã SAP AG 2001
Notes to the user

n The training materials are not intended as self-study programs. They complement the course
instructor's explanations. There is space for you to write down additional information on each
page.
n There may not be enough time in the course to do all of the exercises. The exercises are additional
examples that are done during the course. Participants can also use these examples to refresh or
extend their knowledge after the course.

Course Overview
Contents:
l Course Goals
l Course Objectives
l Course Content
l Course Overview Diagram
l Main Business Scenario
ã SAP AG 2001

Course Goals
This course will prepare you to:

l Create detailed production schedules for short-term
horizons in Production Planning and Detailed
Scheduling (PP/DS)
l Use the requirements strategies to control the
consumption by sales orders of planned independent
requirements (planning) for forecast-controlled
products
l Perform simultaneous material and capacity
requirements planning in the production planning run
l Use the production planner's tools in the product
planning board and the product view
l Use the production scheduler's tools in the detailed
scheduling planning board
l Perform scheduling optimization (sequence
optimization)
ã SAP AG 2001

Course Objectives
At the conclusion of this course, you will be able to:

l Create detailed production schedules for short-term
horizons in Production Planning and Detailed
Scheduling (PP/DS)
l Use the requirements strategies to control
consumption by sales orders of planned
independent requirements (planning) for forecast-
controlled products
l Perform simultaneous material and capacity
requirements planning in the production planning
run
l Use the production scheduler's tools in the detailed
scheduling planning board
l Perform scheduling optimization (sequence
ã SAP AG 2001
optimization)

Course Content
Preface
Unit 1 Course Overview Unit 5 The Production

Scheduler's Tools
Unit 2 Consumption for Forecast-
Controlled Products Unit 6 Optimizing Schedules
Unit 3 Simultaneous Material and

Capacity Requirements
Planning
Unit 4 The Production Planner's

Tools
Appendix
ã SAP AG 2001

Overview Diagram (1)
11 Course Overview
1
Consumption for Forecast-Controlled

2 Products
Simultaneous Material and Capacity

3 Requirements Planning
4 The Production Planner's Tools
5 The Production Scheduler's Tools
6 Optimizing Scheduling
ã SAP AG 2001

Levels of Supply Chain Management
Planning
Strategy planning
Decisions about direction of the company
Integration of Market Place and Supply

Tactical planning: strategy realization and infrastructure planning (plan infrastructure)
Supply Chain Collaboration and
Integration of Market Place
Supplier
Customer
Operational aggregated planning (tactical planning)
Supply Chain Design
Chain Collaboration
Aggregated sales and
demand planning (internal
and external)
Operational detailed planning (operational
planning)
Partner
Partner
Ext. procurement Production Outbound delivery
planning planning planning
External
Ext. procurement Production Outbound procurement at
delivery customer
Execution
ã SAP AG 2001

Assignment of mySAP Applications to Supply Chain
Management Levels
Planning
Strategy planning
Decisions about direction of the company
Integration of Market Place and Supply

Tactical planning: strategy realization and infrastructure planning (plan infrastructure)
Supply Chain Collaboration and
integration of Market Place
Supplier
Customer
Supply Chain Design Operational aggregated planning (tactical planning)
Network Design (ND)
Chain Collaboration
Aggregated sales and
demand planning Demand
Planning (DP)
Supply Network Planning
(SNP)
Operational detailed planning (operational
planning)
Partner
Partner
Ext. proc. planning Production Outb. del. planning
PP/DS, SNP planning Deploy, TP/VS,
PP/DS SNP ATP,
Outbound External
External procurement Production
delivery procurement at
e.g., LES, MM e.g., LES, MM e.g., LES, MM customer
Execution
ã SAP AG 2001

Production Planning & Detailed Scheduling in
APO: Advantages
ª Simultaneous material and capacity requirements planning for in-house

production, external procurement, and stock transfers in a production plant at
operation level: Fast generation of feasible plans
ª Immediate and automatic planning (for example, to trigger production from the
plant) - close integration with plant
ª Planning with exact times, even for dependent requirements (for example, a
prerequisite for material staging by shift)
ª Dynamic exception messages in real-time and based on order linking (pegging)
across the whole supply chain
ª Multi-level capacity requirements planning possible: automatic, multi-level, bi-
directional propagation of order changes
ª Planning of alternative resources
ª Available capacity: time, volumn, length ...
ª Consideration of restrictions in planning (for example, supplier capacity)
ª Schedule optimization (order sequencing, lead time, etc.)
ã SAP AG 2001
n Simultaneous material and capacity requirements planning: You can define resources as finite
resources in the resource master (resources critical for planning). At these resources, operations of
orders are only created if there is enough capacity available for the order quantity on the order date.
If there is not enough capacity available, the system searches for a new date, taking the capacity
situation into account.
n Automatic planning immediately: If you set this indicator for a product (PP/DS tab in the product
master), the system starts a single-level planning run for this product for each change made that is
relevant to planning (for example, a new sales order). At the same time (immediately) a multi-level
ATP check is performed for the product and for the assembly/components for which automatic
planning immediately is defined.
n Planning with exact times: Dependent requirements and orders are created with a time.
n Bi-directional propagation of order changes: If you make time-related changes to orders at, for
example, finished-product level, you can specify that the system is to automatically move the
assembly orders. If, however, there is not enough capacity at that time for the assembly orders, an
exception message can be generated or the order is not moved at finished product level. In the other
direction, moving assembly orders can have an effect on finished product orders.
n Planning alternative resources: If not enough capacity is available at a resource, the operation can
be rescheduled at alternative resources (maintained in the PPM).
n Schedule optimization: During planning, it may be that orders were generated whose order
sequence is not optimum. Therefore, you can change the sequence and resource assignment of
existing orders in the optimization run.

Production Planning & Detailed Scheduling in APO:
Use (1)
l Planning critical products (for example, products with long

replenishment times or products that are produced at
bottleneck resources)
l Planning in a short-term time horizon with scheduling to
the second while taking order sequences into account
l Generating a feasible production plan which includes the
following improvements:
l Reduced lead times and an increase of deliveries that are on time,
leading to greater customer satisfaction
l Increased throughput of products based on a better coordination of
resources
l Reduced stock costs since the work-in-process stocks are limited
due to better coordination of product release
ã SAP AG 2001

Production Planning & Detailed Scheduling in APO:
Use (2)
Which products should you plan in APO?
Planning type APO Possible APO not Possible

recommended in APO recommended in APO
Externally procured products X

with long replenishment times
Products manufactured X
in-house at bottleneck
resources
Products that are not X
critical for planning
(Non-critical) products X
planned with reorder
point planning
(Non-critical) products X*
planned with KANBAN
ã SAP AG 2001
n Notes on KANBAN products: If you work with KANBAN production control in R/3, it can be used
as " KANBAN in connection with planning". Receipts are generated during planning. They are only
for forecast purposes. If a KANBAN container is set to empty, the planned order coming from
planning is reduced and a new planned order is created via KANBAN. If you use the KANBAN
replenishment strategy "KANBAN with material requirements planning“, you can plan in APO but
the KANBAN container is set to empty in R/3.
(C) SAP AG AP220 1-10

APO: Integration with R/3 (1)
l PP/DS is a planning tool. Execution functions such as

confirmations and goods receipts are performed in R/3.
l R/3 supplies APO with data relevant for planning (such as
master data, sales orders).
l To exclude products planned in APO from R/3 planning,
you use the MRP type X0 in the R/3 material master.
l Planning results are transferred from APO back to R/3. If
required, planning is completed in R/3 (for example, if all of
the products of a BOM structure are not planned in APO).
l If you plan a component in R/3, you must also plan all related
subcomponents in R/3
l Recommendation:
Wrong Right
Key
Planned in APO
Planned in R/3
ã SAP AG 2001
(C) SAP AG AP220 1-11

APO: Integration with R/3 (2)
R/3 Creation of planned orders APO
PP Selection of
production process model
MRP PPM explosion
Scheduling
Order/
Availability check against
stock
unassigned receipts
Transfer Creation of a pegging network

orders
ã SAP AG 2001
n The APO System first attempts to cover the requirements with existing stock or orders. It assigns the
requirements to the receipt elements using pegging relationships. If no receipt elements are found, a
production planning run can be started to generate planned orders.
n Using the procurement type defined in the product master, the system determines how the product is
to be procured. If you have defined several production process models (for products produced in-
house) or several procurement options (for products procured externally), the system determines the
alternative with the most favorable costs.
n Scheduling is carried out until the operations have been scheduled in a manner that allows capacity
and component availability to be taken into account. The planning results are transferred to the R/3
System. If some components are not planned in APO, planning is completed in the R/3 System.
(C) SAP AG AP220 1-12

Overview of the Complete Production Planning
Run Process
Planning
Dependent Product Sales orders,

requirements planning run Planned ind. reqmts
Purchase Sched. agree.

Planned order
requisition del. schedule
Convert Convert
Production Process Plnd order for Sched. agree.

Order
order order repetitive man. del. schedule
In-house
production External procurement
Execution
ã SAP AG 2001
n Material requirements planning deals with current and future requirements. The planned
requirements quantities trigger planning (in consumption-based planning, for example, planning is
triggered when the reorder point is not reached). Requirements elements for material requirements
planning are, for example, sales orders, planned independent requirements, dependent requirements.
n If the production planning run discovers shortage quantities, procurement proposals are generated:
purchase requisitions and planned orders are internal planning elements which can be changed,
rescheduled or deleted at any time.
In the case of in-house production the system creates planned order for planning production
quantities. When planning is complete, planned orders are converted to production orders.
Dependent requirements for the planned order are converted to reservations for the production
order.
In external procurement, the system generates a purchase requisition for planning external
procurement quantities. When planning is complete, the purchase requisition is converted to an
order. If a material exists for a scheduling agreement, scheduling agreement delivery schedules
can also be generated directly during the production planning run.
n When planning is complete, in-house production or external procurement must be triggered. For this,
Planned orders are converted to production orders if you are working with discrete manufacturing
(order-based production)
Planned orders are converted to process orders if you are working with process manufacturing
Planned orders are used as a basis for production if you are working with repetitive manufacturing
(period-based instead of order-based)
Purchase requisitions are converted to purchase orders
(C) SAP AG AP220 1-13

Production Planning Run Overview: PPM Explosion
Sales order /
Finished Planned ind. reqmts
product Planned order
Dependent requirements
Assembly 1 Assembly 2
Planned order
Dependent requirements
Raw material 1 Raw material 2 Raw material 3
Purchase requisition
ã SAP AG 2001
n The production planning run from the point of view of a BOM (components in PPM):
The production planning run first determines the independent requirements for the finished
product, which covers sales orders and planned independent requirements. If there are not enough
stock or receipt quantities to cover this requirement, the production planning run generates a
planned order.
The PPM of the planned order for the finished product is exploded and dependent requirements are
generated for the assemblies. Dependent requirements are requirements derived from the BOM
structure.
At the next BOM level, the production planning run generates requirements for each assembly. If
there are not enough stock or receipt quantities, the production planning run generates a planned
order.
The BOM of the planned order for each assembly is exploded and dependent requirements are
generated for the raw materials.
At the lowest BOM level, the production planning run determines the requirements again. If there
are not enough stock or receipt quantities, the production planning run generates a purchase
requisition for the external procurement of the raw material.
(C) SAP AG AP220 1-14

Production Planning Run Overview: Scheduling
Availability date
Start date: Operation 10 Finish date:

Operation 30
Finished
product 10 20 30
Assembly 1 10 20 30
Assembly 2 10 20
Raw
material 1 Purchase requisition
Raw Purchase requisition

material 2
Raw Purchase requisition
material 3
Time Reqmts date
ã SAP AG 2001
n When the lot size of the planned order has been determined and the PPM has been exploded, the
production planning run calculates the dates of the planned orders. The operation times in the PPM
as well as any goods receipt processing times maintained in the product master are taken into
account.
The dependent requirement dates of the planned orders are moved to the dates of the assigned
operations (PPM). A material order appropriate for the operation is then possible.
n The system assumes material staging according to component assignments in the PPM to the
operations in the PPM. The dependent requirement dates of the BOM components are moved to the
production start dates of the operations to which they are assigned.
(C) SAP AG AP220 1-15

Simultaneous Material and Capacity Requirements
Planning
Resource availability
Sales order
Available 1st loading attempt
Desired date Confirmed
Occupied Final loading
and quantity qty/date
30
Resource 3 (finite) 30
20 20
Resource 2 (infinite)
10
Resource 1 (finite)
10
Time
Today Possible ALERTS:

Resource overload
Raw material Delivery time Supplier-supplier time violated
Supplier-resource overload
ã SAP AG 2001
n If a product is not available, the requirement (the sales order or dependent requirement, for example)
triggers production directly: If it triggers an order for in-house production, APO creates a planned
order for the desired quantity in PP/DS. All of the operations of the PPM are scheduled at the
resources of the PPM, and the system takes the capacity restrictions into account (available capacity
and orders that may have already been scheduled).
If the capacities are already exhausted on the desired date, the system uses simultaneous material and
capacity requirements planning to find a date on which the planned order can be created. You use the
strategy profile to define how the system is to schedule (search for a slot, infinite planning ...).
n Prerequisite:
Maintain resources critical to planning as finite resources in the resource master. At these
resources, operations of orders are only created if there is enough capacity available for the order
quantity on the order date.
Maintain the strategy profile with which you want to trigger the scheduling of planned orders in
planning under Global Settings in Customizing for PP/DS, in the Strategy profile field. The
default strategy profile in the delivery system is SAP002 (search for a slot backward).
(C) SAP AG AP220 1-16

Overview - Production Planning Run: Procurement
Elements for Planning
APO planned order APO purchase requisition
Header Header
l Main product l Quantity
l Quantity l Dates
l Dates l Source
l Plant l Status
l PPM l Exception messages ...
l Status
l Exception messages ...
Receipts Receipts
Operations Activities
Activities
Material components
l Quantity
l Dates ...
ã SAP AG 2001
n In APO a planned order is generated automatically in planning if there is a material shortage and
in-house production is to be triggered. MRP controllers can also create planned orders manually.
The planned order header contains the product number, the location (plant, MRP area), the
planned order quantity, the planned order dates, master data, status information (output fixed,
input fixed, conversion indicators) as well as exception messages.
Additionally, the operations of the PPM as well as the BOM components (with quantity and date)
are constantly copied to an APO planned order to which the individual activities/operations are
assigned in the PPM. The planned order components are a source of the dependent requirements
that are used in planning for further calculations.
n A purchase requisition is generated automatically in planning if there is a material shortage and in-
house production is to be triggered.
The purchase requisition header contains the product number, the location (supplier or other plant)
the purchase requisition quantity, the purchase requisition dates, status information, and exception
messages.
If you have also maintained a goods receipt or goods issue time in the product master, it is
scheduled via a resource that is maintained in the location master (plant): In this case, the purchase
requisition receives an activity in which the goods receipt or goods issue time is scheduled.
n Furthermore, a scheduling agreement delivery schedule can be generated automatically in planning
if there is a material shortage and external procurement is to be triggered, however, procurement is
to be executed using scheduling agreement delivery schedules instead of purchase requisitions. If
you want to generate scheduling agreement delivery schedules, you only have to transfer a delivery
schedule generated in R/3 (which is marked as APO relevant in the additional data of the item) to
APO via the R/3-APO interface. The use of the delivery schedule must not be explicitly allowed in
APO.
(C) SAP AG AP220 1-17

Interaction Between SNP and PP/DS
PP/DS SNP
Create, Create, Create, Create,
change change change change
Receipts
Order Order Order Order Order Order

4712 4713 4714 4715 4716 4717
Today 50 100 40 210 160 35 Time
Mo Tu We Th
Requirements
Production horizon
(per product)
Capacities and material are planned Capacities are planned in time bucket
based on exact times (to the second) profiles in an aggregated manner
Consideration of order sequences Order sequences not considered
Optimizer: Can optimize the sequence Optimizer: Optimizes lot sizes,
of existing orders and operations determines source of supply
ã SAP AG 2001
n If you decide to plan using both Supply Network Planning (SNP) and Production Planning and
Detailed Scheduling (PP/DS), the production horizon is used to separate the areas of responsibility
for these two planning functions:
Supply Network Planning is used for medium-term to long-term planning across the whole
logistics chain (especially if several plants and distribution centers are available). Requirements
for a defined bucket (for example, day) are aggregated. In this case, it is irrelevant whether a
requirement is in an early shift or late shift since the requirements are only roughly planned, and
even the time positions of breaks are not taken into account. Furthermore, you are not only able to
perform time aggregated planning in SNP, but also period aggregated planning (if desired). You
can define bucket resources to be used for SNP which can represent, for example, the available
capacity of a whole warehouse. Since you create separate PPMs for SNP (which are usually
copied from PP/DS-PPMs), you can describe production at these bucket resources. Order
sequences play no role in the time area of SNP planning.
PP/DS is used for short-term planning in which orders must be scheduled to the minute and order
sequences must be taken into account (sequence planning and optimization).
n As soon as a requirement is within the production horizon, it is no longer planned in the SNP
planning run, but rather in the production planning run in PP/DS. Orders can be manually created or
changed in PP/DS across the complete time axis, irrespective of the production horizon. During
automatic planning (the production planning run) in PP/DS, only orders within the production
horizon are created. In SNP, however, orders cannot be created or changed in the production horizon.
Orders that are in the production horizon and thus planned by PP/DS are still displayed in SNP as
aggregated requirements for the defined bucket.
(C) SAP AG AP220 1-18

Interaction Between SNP and PP/DS (2)
SNP
Create
Production horizon
100 Scheduling according
to the PPM for SNP
Today
Production horizon
100
Today
Delete
PP/DS
Production horizon
100 Scheduling according

to the PPM for PP/DS
Today
PP/DS Create again
ã SAP AG 2001
n In this graphic, an order is created in Supply Network Planning using the production process model
defined in SNP. Production process models are created (the SNP-PPM can be copied from PP/DS-
PPM, which is generated via the R/3-APO interface from the R/3 routing/BOM). Bucket resources
(used only in SNP) or mixed resources (which can be used both in PP/DS and SNP-PPM) are
planned in Supply Network Planning. Orders are aggregated for each defined bucket.
n As soon as the start date of the order enters the production horizon, the SNP order is no longer
planned by SNP. The SNP order must be converted into a PP/DS order so it can be planned by
PP/DS. To do this, background conversion is available in the PP/DS menu, which can be used to
schedule periodically. The conversion creates the order again in PP/DS using the production process
model defined there. Before the conversion, the aggregated requirements are displayed in SNP as
planned production. After the conversion in PP/DS, the orders are still displayed as aggregated
requirements in SNP.
n The production horizon is defined as a number of days from the current day into the future in which
PP/DS is to be used to plan. The production horizon can be defined in Customizing for Supply Chain
Planning, in the IMG activity, Display Global Parameters and Default Values. You may also define
a production horizon for each product per location in the product master. This definition takes
priority over the Customizing definition.
(C) SAP AG AP220 1-19

Transaction Data Objects in the Core Interface
(CIF)
R/3 Initial
APO
data transfer (first
Transaction data transfer) Transaction data
Stocks Order with category

MM
CC (stock)
Orders
BF (purchase order)
Purchase requisitions AG (purchase requis.)
SD Sales orders BM (sales order)
Planned orders AI (planned order)
PP FA (plnd ind. reqmts)
Planned ind. reqmts
AM (reservation)
Reservations ...
...
Transfer of
changes
Real time
ã SAP AG 2001
n The selection of transaction data to be transferred to APO is specified in an integration model you
define in R/3. All transaction data is represented in orders in APO, which can be differentiated using
the ATP category.
n First the initial data transfer of transaction data takes place via the APO-core interface. As a rule, the
change transfer between R/3 and APO automatically follows for transaction data objects that
belong to an active integration model. New transaction data or changes to existing transaction data is
automatically transferred. (For transaction data of the APO component SNP, you can define in
Customizing whether a real-time or periodic publication is to be performed.)
n The transaction data objects in APO are not identical to those in R/3. All transaction data in R/3 is
transferred to APO as orders that can be distinguished by ATP category.
n In the standard system, planned independent requirements can only be transferred from R/3 to APO.
The publication of planned independent requirements that you require if you only perform demand
planning in APO must be triggered from demand planning in APO with a specific transaction.
n In APO (PP/DS Customizing) you can specify that planned orders and purchase requisitions are only
to be transferred from APO to R/3 if the conversion indicator is set.
(C) SAP AG AP220 1-20

Typical Process Flow in Discrete Manufacturing /
Process Manufacturing (1)
R/3 A APO
10 Pos. 1 BOM/ A PPM transfer 10 20 30
20 Pos. 2 routing (Products A, C, D
30 Pos. 3 B C D are APO-relevant) C D
Start
A A
Planned order Planned order Planned order
Create or change
planned order 10 20 30
Planned order
number
B, C, D C D
CIF: Create or change planned order
R/3: "Mapping"
R/3: Create or change dependent
requirements
ã SAP AG 2001
n A planned order is created in APO with an APO order number and then transferred to the R/3
System. The planned order is created in R/3 based on the R/3 number range, and the R/3 planned
order number is transferred back to APO so that the planned order has the same R/3 planned order
number in both systems.
Note: When a planned order is transferred to R/3, the planned order components and operations are
transferred, however, the planned order is only created with a start and end date in R/3, whereby the
start and end dates of the APO order are copied (the start of an APO order is the same as the start of
the first APO operation, and the end of the APO order is the same as the end of the last APO
operation). When you create the R/3 planned order, the dependent requirements are generated again
because of the R/3 number, and the dependent requirement numbers are not transferred back to APO
(the numbers are different). Therefore, the components are scheduled on the start date of the order
(whereby you can also have a component staged later in the planned order coming from APO via the
lead-time offset in BOM item maintenance in R/3).
Components that are only planned in R/3 and not in APO are added to the R/3 planned order
(mapping) when the planned order is transferred. If components are added manually to the APO
planned order (that exist in an active integration model but not in the BOM!), they also appear in the
R/3 planned order. If components are deleted manually in the APO planned order, these components
are not transferred to the R/3 planned order. If engineering change management is used to replace
component D with E in R/3, for example, this component will be replaced by E in the R/3 planned
order and in the APO planned order.
n The process flow for changes to an APO planned order are the same.
n The conversion of planned orders to production orders is triggered from APO. You set the
conversion indicator in APO for the planned orders you want to convert. The orders are transferred
to the connected R/3 System where the planned orders are automatically converted to production
orders (production order creation).
In Customizing for PP/DS (Global Settings -> Maintain Global Parameters and Default Values),
you can also define that planned orders are not to be transferred to R/3 unless the conversion
indicator is set for them (for example, if the planned order is not required in R/3 as the planning
(C) SAP AG AP220 1-21
instrument since all components are planned in APO and the production order is only required to
execute production in R/3).
(C) SAP AG AP220 1-22

Selection Criteria for MRP Type "X0"
R/3 Material master D

Material master C
Integration model
Name PUMP
Material master B Target s. APOCLNT800
MRP type X0 Material master A
Applic. MATERIALS
MRP procedure X
Without MRP, Mat. A Material master
with BOM explosion
X0 Customers
...
Relevant materials
Mat. B Mat. C Mat. D Material
X0 X0 VB Plant 1000
MRP type X0
Material
Product C
Planning in ...
status
APO APO
Product B
Product A
ã SAP AG 2001
n Planning is not necessarily executed for all materials in APO. Planning for critical materials can take
place in APO, while less critical materials (such as consumption-controlled purchasing materials)
can be planned in R/3.
n Materials that have been planned in APO may not be planned again in R/3 - the planning result from
APO is transferred directly to R/3 in planned orders. Despite this, dependent requirements must be
determined for materials that have a BOM in R/3 (normally as a result of material requirements
planning). You therefore assign these materials a special MRP type with the MRP procedure "X"
("without MRP, with BOM explosion"). (This MRP procedure is available as of Release 4.0; if you
work with earlier Releases, use MRP type "P4" with a planning time fence of 999 days).
n It is also possible to use the MRP type XO to select materials relevant for APO in the integration
model. If you give materials that are to be planned in APO a special plant-specific material status,
you can use the material status to limit the selection further.
n In general, you should be careful about separating APO-relevant materials from those that are not
APO-relevant: for effective planning in APO, you must be sure that all materials important for the
planning process can actually be planned in APO (For example, with capacity planning, if the
capacities in APO are to be planned for the different resources, all materials whose production uses
these resources must be planned in APO).
(C) SAP AG AP220 1-23

Conversion to Fixed Procurement Elements
Individual
Individual conversion
conversion Production
Planned
order order
Purchase
requisition Order
Collective
Collective conversion
conversion
Planned Production
orders orders
Purchase
requisitions Orders
ã SAP AG 2001
n You can trigger the conversion of planned orders and purchase requisitions to production orders or
orders directly in APO. You set the conversion indicator in APO for the orders you want to convert.
The orders are transferred to the OLTP system and converted automatically. The converted orders
are sent back to the APO System with a different ATP category (purchase requisition to purchase
order). If a planned order is converted to a production order, the dependent requirements of the
components are converted to reservations.
n You can convert planned orders and purchase requistions in one of the following two ways:
Individually in interactive planning: In the product view and the product planning table, you can
select orders to be converted and then choose Set conversion indicator. When you save the
planning results, the orders to be converted are transferred to the R/3 System, where the
conversion will be automatically triggered. The converted orders are sent back to the APO System
with a new ATP category.
Using mass conversion and selection criteria (Choose Production Planning -> Manufacturing
Execution -> Conversion of Orders/Purchase Requisitions): You can set the conversion indicators
for a large number of orders or for several products. You can restrict the selection of orders to be
converted by entering the product, location, production planner and the offset for the opening
period. The opening period, which is defined in the product master on the PP/DS tab, controls
which orders are to be converted. The opening period is a number of workdays starting from the
current date. The APO System only sets the conversion indicators for orders whose order start
dates are within this period. The opening period is used both for in-house production orders and
external procurement orders.
n Prerequisites: On the PP/DS tab in the product master, you have maintained an opening period for
each product at the location level.
(C) SAP AG AP220 1-24

Mass Conversion - Time-Based
Offset time
Purchase requisition
Opening
period
Planning
Planned order
Creation Production Production

date start finish
Planned orders and

purchase requisitions
Today x days later Time
Production orders/
process orders Order header
Operations
Orders
Material components
Production resource/tool
Costs PlanK
Plnd 100 20
Actual
50
In-house External procurement

ã SAP AG 2001 production
n APO orders contain three dates: production start, production finish, creation date. The creation date
is the date on which a planned order is to be converted to a production order or a purchase requisition
to an order. This date is based on the opening period defined in the R3 material master (SchedMargin
key field). The opening period from the SchedMargin key of the R/3 material master is transferred to
the APO product master in the R/3 APO interface (Opening field in the Horizons group box).
n As soon as the creation date of a planned order is passed on to a time horizon selected in mass
conversion, it can be converted in mass conversion. The time interval (offset time) entered in mass
conversion is always valid as of today's date. Planned orders whose creation dates are in the past are
automatically selected too.
n Planned orders are usually converted to production orders (in-house production), purchase
requisitions to purchase orders (external procurement).
n In in-house production, the order type in R/3 determines whether it is a production order or a
process order. The order type is taken (in the sequence of highest priority) from the production
scheduling profile in the R/3 material master, the MRP group in the R/3 material master, and the
plant parameters in R/3-Customizing. The R/3 System decides whether a production order or a
process order is to be generated for the product.
n When the planned order is converted to a production order or process order, the planned order is
deleted. The related dependent requirements (material components) and any capacity requirements
are redirected to the newly created production order. The dependent requirements become
reservations.
(C) SAP AG AP220 1-25

Converting Planned Orders - Process
Opening period (from - to)
C1 B1
A
C2
B2
C3
Time
Lead time - total
Current date
ã SAP AG 2001
n The MRP controller uses the collective conversion function to convert the planned orders of a
product structure on the time axis, step by step.
n Within the whole product structure, only those planned orders whose planned creation dates are
within an opening period to be specified are offered for conversion.
n In Customizing for PP/DS (Global Settings -> Maintain Global Parameters and Default Values),
you can also define that planned orders and purchase requisitions are not to be transferred to R/3
unless the conversion indicator is set for them (if, for example, in in-house production the planned
order is not required in R/3 as the planning instrument because all components are planned in APO).
(C) SAP AG AP220 1-26

R/3 APO
A Set conversion A
Planned order Planned order Planned order
indicator:
10 20 30 Trigger 10 20 30
conversion of
B, C, D Planned order C D planned order C D
conversion A
A Planned order
Production order
10 20 30
10 20 30
Mapping C D
B C D and save
A A A
Production order Production order Planned order
10 20 30 Transfer back with 10 20 30 10 20 30
production order
B C Order reservation C C
D number D D
Dependent reqmt
ã SAP AG 2001
n In production order creation triggered automatically from APO, the usual R/3 steps are performed:
the components are copied from the R/3 planned order, the R/3 routing is read again, R/3 lead time
scheduling takes place (which is important for generating a standard cost estimate even when using
APO). In an R/3 standard cost estimate, the operations are scheduled according to the R/3 scheduling
parameters set. Components are scheduled based on the component assignment in the R/3 routing.
n A result of this temporary production order (which is not yet saved) is that the operation dates do not
correspond with the scheduling situation of the APO order. Therefore, as a last step before saving the
production order in R/3, "mapping" takes place, which is a process that adjusts the operations in the
R/3 production order to the dates of the APO operations. Note: To ensure that the order duration is
the same in R/3 and in APO, make sure that all R/3 routing operations are transferred to the APO
PPM in the R/3-APO interface.
When you save, the dependent requirements of the planned order are converted to order
reservations of the production order in R/3 (status: Movement not allowed).
Note: In R/3 Customizing for Production Orders, you can specify that a component availability
check is to be performed when the production order is created. If the components in the integration
model are indicated as relevant for the APO availability check, the ATP check takes place in APO.
At this time, you cannot save the R/3 production order depending on the inspection results or a user
decision. Note: If the conversion of a planned order to a production order is triggered in R/3 and not
in APO, the operation dates planned in APO might not be transferred to the R/3 production order.
n The converted orders (status "created") are sent back to the APO system along with the production
order number and the changed ATP category (ATP category for production order instead of planned
order). Only components that are contained in an active integration model are transferred. In
addition, only those operations executed at resources contained in an active integration model are
transferred.
(C) SAP AG AP220 1-27

R/3 APO
A A A
Production order Production order Production order
production order
B C D number C D C D
Mapping
Production order release
A A A
Production order (released) Production order Production order
production order
B C D number C D C D
Mapping
A
Production order
Print shop
Material floor
staging papers
list 10 20 30
print
C D
Print picking
Materiallist or material
staging list staging list
print
Component
Materialwithdrawal
staging listfor product B: Reduce order
Material reservations
staging list and
Reduce order reservations and
print componentprint
stocks for product B
component stocks for product B
ã SAP AG 2001
n In APO, mapping and an order number change take place between the R/3 production order
transferred and the APO planned order still in APO: the ATP categories of the APO order (up to now
the ATP category for the planned order) as well as the APO order requirements (up to now ATP
category for dependent requirements) are adjusted to the R/3 production order. The APO order is
assigned the number of the R/3 production order.
n The R/3 production order is released in R/3 (individual or collective release). When the R/3
production order is released, the shop floor papers can be printed and the goods movements are
posted for production (the order reservations are assigned the status "movement allowed"). In the
R/3-APO interface, the release is treated the same way technically as a production order change in
R/3 (see later slide): The R/3 production order is tranferred to APO again and mapping is performed
in APO, whereby the ATP category of the order is changed to an ATP category for a released
production order. The ATP category for component requirements and for order reservations change
(status "movement allowed").
The component availability check for the release is technically identical to the check for order
creation. Note: You can also have production orders released automatically in APO integration
(settings via the production scheduling profile in the R/3 material master).
n Printing shop floor papers: This is done in R/3.
n Printing the picking list or material staging list (in R/3): This is done in R/3.
n Withdrawing components: The goods issues for the components to the production order are posted
in R/3, the requirements (order reservations) and the component stock are reduced both in R/3 and in
APO.
(C) SAP AG AP220 1-28

Production Orders in R/3
Quantities,
Order header dates
Operations
Material components
Prod. resource/tool
Plan 100 20
Costs Plnd 50
Actual
ã SAP AG 2001
n The production order is a complex data structure that contains information on planning, storage,
production, scheduling, and accounting. The production orders allows you to produce specific
materials or an activity in a specific quantity.
n The planning data includes information on which product is to be produced in which quantity, which
and how many components are to be used, and which capacities are required for production.
n The storage data includes storage locations and storage bins for component withdrawal.
n The production data contains the required operations and production resource/tools as well as all
confirmed actual quantities and actual times of production.
n The scheduling data includes the start and finish dates per order as well as the operation dates and
operation times.
n The accounting data includes information on production costs such as material and personnel costs.
(C) SAP AG AP220 1-29

Discrete Manufacturing (Order-Based Manufacturing)
Discrete manufacturing l Order-based production using

production orders
Lot l Production in order lot sizes (see lot-

sizing procedure)
Lot Lot
l Status management (created, released
Work center 2
...) for each order
Work center 1 l Availability checks for material, capacity,

Work center 3
production resources/tools for each
order
l Material staging for each order is
controlled by material reservations
l Order confirmation, operation
confirmation
l Cost monitoring that is order-based or
product-based
ã SAP AG 2001
n In discrete or order-based production, the products are produced in separate, individual production
lots and passed through the workshop (less period-based production).
n As soon as a planned order comes from higher-level planning levels, shop floor control puts the
information into the production order and adds order-related data to ensure complete order
processing (production order creation). The release of the production order authorizes the shop floor
papers to be printed as well as production to be executed.
The production order specifies which material is to be produced, as well as where, how and on which
date it is to be produced. It also specifies which resources must be used and how the order costs are
to be settled. This results in order-based production.
n Discrete manufacturing is characterized by constantly changing products.
n Another characteristic of discrete manufacturing is the different sequence of work centers that the
products come across during their production. The sequence is specified in the routing, which can
often be very complex. There are time lags between the individual stations. Semi-finished products
are often put in intermediate storage before being processed further.
n In discrete manufacturing, the material is staged with reference to the individual production lots.
n Confirmations of the individual operations serve to document work progress and fine-tuned control.
Costing is order-related and individual lot-related.
(C) SAP AG AP220 1-30

Process Manufacturing
l Order-based, batch-oriented production

using process orders
Process manufacturing
l Target industries: pharmaceutical
industry, chemical industry, food product
industry
l Process order management: Status
management, availability check, material
Resource quantity calculation, active ingredient
management, material staging, batch
determination, confirmation, manufacture
of co-products, cost collection
l Process management: Link to process
control systems, PI sheet
l Consideration of GMP requirements:
Approval procedure for master data, in-
process quality check, batch
management, batch record, digital
signature, material identification and
material reconciliation
ã SAP AG 2001
n In process manufacturing products are produced based on orders and in batches.

n In higher-level planning, production requirements are covered by planned orders, which specify the
planned dates and quantities.
n Planned orders are then converted to process orders. Process orders can also be created manually.
A process order describes the production of one or several materials in a production run in detail. It
is the central control instrument for executing production. All planned and actual production-
related data is described and monitored via the process order.
n Process orders are created based on a master recipe in which the resources and material
components are defined.
n When you release a process order for production, process instructions defined in the order are
combined into control recipes in process management. They are either transferred to a process
control system or to a process operator as a PI sheet, which appears on the screen in natural
language.
n In the other direction, process management receives process messages from the process control level,
which are then forwarded to different destinations. For example, confirmations for the process order
can be created and material consumptions or production yields can be posted.
(C) SAP AG AP220 1-31

Repetitive Manufacturing (Period-Based Production)
l Quantity and period-based production

Repetitive manufacturing/ without production order (not order-
Flow manufacturing based)
l Production using planned orders (per
planning period), no conversion
l Material staging is period-based (using
material staging list)
Production line
l Constant throughput through production
lines/repetitive production
Planned orders
l Confirmations are period and quantity-
Time based
Planning periods Line 1 l Cost monitoring is product and period-
based
Line 2
ã SAP AG 2001
n In repetitive manufacturing/flow manufacturing production plans are created and processed based
on periods and quantities (not order-based).
n Planned orders of order type PE (run schedule quantities) specify the production quantities and dates.
These planned orders are not converted to production orders. A printed list of these planned orders
authorizes production. The product is not produced in separate lots, but rather a total quantity with a
certain production rate is produced in a specific period (such as days).
n In repetitive/flow manufacturing, a product is usually produced repeatedly over a longer period of
time. The production quantities are not necessarily high.
n The products usually run in a constant flow (often without intermediate storage) across the
production lines, and several products can be produced on one production line. The routings are
often simple.
n Required components are staged at the production line collectively. For a certain period, as many
components are staged as necessary to cover the requirements at the production line.
n At the end of any period (for example, a shift) the produced quantities can be confirmed all at once.
The costs are collected in a period-oriented manner for each product.
n Repetitive manufacturing is used with the following goals in mind:
• To create and process production plans in a period-based manner (fewer individual lots and
order-related processing)
• To reduce production control efforts and simplify actual data entry, while still being able to
fully use the PPS instruments
• To reduce controlling efforts
(C) SAP AG AP220 1-32

Company Portrait: The Precision Pump Company
The Precision Pump Company

The Precision Pump Company has been on the market since 1971 and, as
the world market leader, offers a number of high-tech standard pumps. It
has been indexed on the New York technology stock index Nasdaq since
1999.
Products
The product catalog contains turbomolecular, centrifugal,
?
rotation and membrane pumps (for example, for producing
ultra high vacuums)
Customers
Its customers come from a range of areas: from the electronics
branch, to the semiconductor industry, chemical, pharmaceutical
and process engineering, as
well as the automobile industry and universities.
ã SAP AG 2001
n The Precision Pump Company has been on the market since 1971 and, as the world market leader,
offers a number of high-tech standard pumps. Its product catalog contains turbomolecular,
centrifugal, rotation and membrane pumps. The Precision Pump Company has customers from the
electronics branch, the semiconductor industry, chemical, pharmaceutical and process engineering,
as well as the automobile industry and universities. The company was recently ISO-certified and has
been indexed on the New York stock index Nasdaq 100 since 1998.
Especially in the fast growing business of turbomolecular pumps, the company showed significant
increases in returns in the last fiscal year: many steps in the semiconductor industry, from wafer
production to the finished chip, only function under high vacuum. In this area final pressures of
< 10-10 mbar, which are in the ultra high vacuum range, are required.
In the current fiscal year, the Precision Pump Company plans to enter the booming DVD growth
market. DVDs are rewriteable optical storage mediums that have much more storage capacity than
a CD. Central requirements for the coating machines used to produce these rewriteable DVDs are
allotted to vacuum technology.
By intensively co-engineering with manufacturing companies, Precision Pump Company has
optimized a range of products for these special requirements.
(C) SAP AG AP220 1-33

Company Portrait: Maxitec Computers
Maxitec Computers, Limited

l Maxitec Computers, Limited has been on the market since 1992
and, as world leader, offers innovative products and services for
information technology, especially in the area of best-in-class
computer products.
Products
l Its product catalog includes desktop PCs, notebooks,
workstations, servers, handhelds, microelectronics,
?
software, printing and memory systems, network
management products, accessories
Customers, Markets
l Its customers and markets range from the trade and
service industries, public sponsers, financial services,
transportation, telecommunications and media, all the way
to small and medium-sized businesses and the consumer
ã SAP AG 2001
n Maxitec Computers was founded on 2 October 1992 when MSN Computers Ltd. and TEC Computer
Systems merged. Maxitec Computers serves the consumer and business market in 164 countries
around the world with a complete pallet of best-in-class computer products, which are produced in
efficient, modern plants in Europe and the US. Maxitec Computers, with its headquarters in Dresden,
Germany, has approximately 22500 employees in 34 countries around the world and is number one
among IT vendors.
n In all of the key markets around the world, independent retailers take care of customers. The
customer base includes most of the 1000 largest companies in the world, more than 2000 leading
distributors, and over 100000 sales partners and retail outlets. Its own sales organization employs
over 2500 sales professionals. A network of service and system integration partners are available
worldwide to take care of the product range.
n Global collaboration between MSN and TEC allows for access to leading computer technologies
worldwide and additional employees in the area of customer service. This enables Maxitec
Computers to support its customers fully in realizing worldwide IT strategies.
n Economies of scale in purchasing and supply management contribute greatly to the success of
Maxitec Computers. A product and supply organization is responsible for sourcing, development,
production, and sales order processing. Material purchasing in particular profits from the joint
venture, due to the worldwide network of both corporate groups.
n Maxitec Computers is an independent customer and sales-oriented company. Both MSN Limited,
Tokyo and TEC Systems, Walldorf have 50 percent of the European joint venture; furthermore, they
have agreed to cooperate in the computer field worldwide. With this joint venture, both companies
want to maintain access to the strategically important market of IT hardware.
(C) SAP AG AP220 1-34

Consumption for Forecast-Controlled Products
Contents:
l Consumption in make-to-stock production using make-

to-stock production requirements strategies
l Consumption in make-to-order production using make-
to-order production requirements strategies
l Setting parameters for consumption in Customizing for
Requirements Strategies
ã SAP AG 2001

Consumption for Forecast-Controlled Products:
Course Objectives
At the conclusion of this unit, you will be able to:
l Describe the differences between how individual

requirements strategies in the areas of make-to-
stock and make-to-order production are
consumed
l Use the Customizing settings for requirements
strategies
ã SAP AG 2001

2
1 Course Overview

22 Products
Simultaneous Material and

3 Capacity Requirements Planning
The Production Planner's Tools

4
ã SAP AG 2001

Business Scenario
l The Precision Pump Company produces

turbomolecular pumps for the production of ultra
high vacuums in 1000 plants in Hamburg
l In the SAP System, the production quantities must
be planned using a forecast. New sales orders
must consume the forecast (planned independent
requirements)
ã SAP AG 2001

Requirements
strategies
Quantity 100 Quantity ?
Date 05/10 Date ?
SD
Planned
indep. Sales
reqmts order
Production /
Purchasing Customer
How does SAP process independent

ã SAP AG 2001
requirements?
n A requirement is the quantity of a material required at a certain time in a plant.

n Independent requirements do not refer to the requirements of other materials. Planned
independent requirements and sales orders are independent requirements.
n A requirements strategy specifies a possible procedure for material planning.
n Some requirements strategies support make-to-stock production. You could, for example, plan
production or purchasing based on a forecast and then cover the sales orders from the stock.
n Some requirements strategies support make-to-order production. In this case, you may not start
production or purchasing, for example, until a sales order has been received.
n Some requirements strategies support a combination of make-to-stock and make-to-order production.
You could produce the subordinate assembly, for example, based on a forecast. You would not start
the final assembly until a sales order is received.

Transfer of Planned Independent Requirements:
Overview
Transfer of active planned

Demand Planning
independent requirements
in APO
from R/3
Planned
ind.
reqmts
Production Planning
ã SAP AG 2001
n Planned independent requirements can be created based on the following data:

Transfer of data from APO Demand Planning
Transfer of planned independent requirements from the R/3 System by way of the R/3-APO
interface:
Active planned independent requirements are transferred (see Active indicator in planned
independent requirements). Inactive planned independent requirements are not transferred.
You can also generate planned independent requirements in the test system by entering a negative
quantity in the product view. Since, however, they are not saved in APO on the APO database or
an Infocube, it is not a good idea to maintain planned independent requirements in this way.

Transfer of Planned Independent Requirements
from R/3
Demand Management in R/3, Production Planning in APO, Shop Floor
Control in R/3
Demand Planning/ Demand

R/3 Mgmt
Plnd ind. reqmts
Create
Plnd ind. reqmts

APO
Production planning (PP/DS)
Planned order
Prod. order
Create Execute
R/3 Prod. order
Shop floor control
ã SAP AG 2001
n This example shows demand management in R/3 and production planning in APO.
n Demand management can take place manually in R/3, it can be based on a forecast, or it can refer
back to R/3 Sales and Operations Planning (SOP) functions. It results in planned independent
requirements, which are transferred to the APO System. Planned independent requirements must
therefore be included in the integration model.
n The planned independent requirements are the starting point for production planning in APO.
Furthermore, storage location stock is to be included in the planning.
n Production planning results in planned orders being created. The conversion of planned orders to
production orders in R/3 is triggered from APO via the conversion indicator for APO orders. Shop
floor control takes place in R/3, whereby activities in R/3 (for example, confirmations) are also
transferred back to APO.
n To ensure that the materials are not unnecessarily planned again in R/3, the MRP type must indicate
that they are to be excluded from material requirements planning (MRP type X0).

Transfer of Planned Independent Requirements
from APO Demand Planning
Demand Planning and Production Planning in APO,
Shop Floor Control in R/3
Demand Planning (DP)

APO
Plnd ind. reqmts
Production Planning (PP/DS)

Planned order
Prod. order
Create Execute
R/3 Prod. order
Shop floor control
ã SAP AG 2001
n This graphic gives a complete overview of Demand Planning and Production Planning in APO.
n Demand planning takes place in the Demand Planning component in APO. It refers, for example, to
a forecast taken from past values in BW or R/3 and executed in APO. Planned independent
requirements are generated on APO as a result of Demand Planning.
n The planned independent requirements are the starting point for production planning in APO. Along
with the requirements, any available warehouse stock maintained in R/3 is also to be considered in
planning, making it necessary to include storage location stock in the integration model.
n As a result of production planning, planned orders are created in APO. The conversion of planned
orders to production orders in R/3 is triggered from APO via the conversion indicator for APO
orders. Shop floor control takes place in R/3, whereby activities in R/3 (for example, confirmations)
are also transferred back to APO.
n To ensure that the materials are not unnecessarily planned again in R/3, the MRP type must indicate
that they are to be excluded from material requirements planning (MRP type X0).

l Make-to-stock production of the finished product by planning at

the finished product level
l Sales order-related final assembly:
n Make-to-stock production of assemblies by planning at
assembly level, final assembly in make-to-stock or make-to-
order production when sales orders are received.
n Make-to-stock production of assemblies by planning at
finished product level, but final assembly is not triggered until
the sales order is received. Final assembly in make-to-stock
or make-to-order production.
l Make-to-order production only, without planning
ã SAP AG 2001
n Requirements strategies represent the business procedure for planning production quantities and
dates. A wide variety of requirements strategies are available offering a number of different
possibilities for planning, ranging from make-to-order production to make-to-stock production.
Depending on the strategy you select, you have the following options:
• Make-to-stock production based on sales orders and/or planned independent requirements at

finished product level
• Planning specifically for the assembly, if you can plan more easily at component level. Final
assembly takes place in make-to-stock or make-to-order production.
• Stocking up of assemblies by planning at finished product level, but final assembly is not triggered
until the sales order is received. Final assembly takes place in make-to-stock or make-to-order
production.
• Make-to-order production only, without planning the finished product or the components
n Furthermore, you can combine requirements strategies. This allows you to plan a finished product
with a requirements strategy for make-to-stock production as well as plan an important assembly that
is also sold as a spare part.
n The planning strategies available for a material can be found in APO Customizing for Master Data
(in step Determine Requirements Strategies). You can assign a requirements strategy to a material in
the Requirements strategy field. Each requirements strategy contains important control parameters
for the consumption of sales orders (or dependent requirements) and planning.

Make-to-Stock Production: Overview
Process
SD
Sales
order
Procurement Warehouse
Planning Sales from
and / or and stock of
stock
production finished product
Plnd
ind.
req.
Goods issue
Requirement reduction
l Sales orders are filled by warehouse stock

l Planning (planned independent requirements) allows procurement
quantities to be planned before sales orders are received
ã SAP AG 2001
n Use: Make-to-stock strategies are oriented towards planning for the procurement of components
(production or purchasing) by planning the finished product. If it is easier for you to plan at
component level, you can use planning at the assembly level.
Choose a make-to-stock strategy if
The materials are not separated, meaning they are not assigned to a specific sales order
The costs must be tracked at material level and not at sales order level
n You use make-to-stock production when you produce stock without an order to be able to later
supply your customers with goods from this stock immediately. You may want to produce goods
without a sales order if you expect a demand for them in the future. Make-to-stock strategies support
very close customer-supplier relationships, since their purpose is to supply the customer with goods
from stock as quickly as possible. Returns that have been through a quality check as well as other
unplanned goods receipts can be used for other sales orders.
n You can avoid increased warehouse stock in a make-to-stock environment by creating planned
independent requirements in advance to plan your stock. If you do this, you can also decide whether
or not sales orders that exceed your planning are to have an influence on production. In addition,
sales orders should be available relatively early (for example, using scheduling agreements).
n Make-to-stock production strategies basically consist of four phases: generation of planned

independent requirements, procurement before sales, receipt of sales order, goods issue for delivery
and consumption of planned independent requirements.
(C) SAP AG AP220 2-10

Requirements Strategies for Make-to-Stock
Production
Product
Name of requirements strategy master (APO)
Make-to-stock production 10
Planning with final assembly 20
Planning at assembly level 20 +

Assembly
planning ind.
ã SAP AG 2001
n A wide range of requirements strategies are available for make-to-stock production: make-to-stock
production, planning with final assembly, and planning at assembly level.
n In a make-to-stock environment, it may be important to smooth out production. This allows

fluctuations in requirements, which are a result of different customer requirement quantities, to be
evened out for production and put in stock.
As a rule, make-to-stock strategies are combined with a lot size key or rounding value. This allows
you to, for example, produce the total quantity for the whole month once a month or only produce
full pallets.
n Additionally, production by lot size is also available in the R/3 System. In production by lot size,
both sales orders and planned independent requirements are considered for material requirements
planning, however, planned independent requirements are not consumed by sales orders. Both
requirements can then be procured in a common lot using a suitable lot-sizing procedure (for
example, period lot-sizing) with a common procurement element (such as a planned order). In this
case, the goods issue for the sales order reduces the sales order. The goods issue to the cost center,
for example, reduces the planned independent requirements (in this case, planned independent
requirement reduction takes place according to the make-to-stock production strategy).
If you work with production by lot size in R/3 (R/3 planning strategy 30), strategy 10 (make-to-stock
production) will appear in the APO product master after the master data has been transferred. This
ensures that the planned independent requirement is not consumed by the sales order. The process is
exactly the same as the description of the strategy in R/3.
(C) SAP AG AP220 2-11

Requirements Strategies for Make-to-Stock
Production: R/3 Integration
Material A Product A
MRP 3 Demand
APO
Planning
Req. strategy
Strategy group PP
Proposed strategy
10 10 Anon. make-to-stock prod.

40 20 Planning with final
Main strategy assembly
70 20 Planning with final

assembly
Mixed MRP ind. 1 Assembly planning
Strategy 70 Requirements strategy 20

+ correspond + APO
Mixed MRP ind. 1 Assembly planning
ã SAP AG 2001
n Planning strategies defined in the R/3 material master are transferred to the APO product master via
the R/3 APO interface. However, it must be noted that the logic between the two systems differs
(even the numbers describing the strategies are generally not the same in R/3 and in APO since often
several R/3 planning strategies can be represented in APO with one requirements strategy).
n The R/3 strategy group, which contains a main strategy and sometimes further secondary strategies,
is maintained in the R/3 material master. The main strategy from the R/3 strategy group is constantly
transferred from the R/3 material master to the APO System: If strategy 10, anonomous make-to-
stock production, or 40, planning with final assembly, or 70, assembly planning, are defined as the
main strategy, the APO requirements strategies corresponding to these strategies are transferred.
If you have copied a standard R/3 planning strategy to your own planning strategy in R/3
Customizing and defined this as the main strategy in the strategy group of the material master (this
main strategy is then called Z1 instead of 10, for example), the Customizing strategy behind strategy
Z1 will be analyzed in R/3 so that the R/3-APO interface still transfers a requirements strategy make-
to-stock production in APO.
n In the R/3 material master, a MRP group can also be used to assign a strategy group to the material.
These settings are checked when such a material is transferred to APO. If strategies are found for a
material both via the strategy group directly as well as via the MRP group indirectly, the strategy is
found via the strategy group.
(C) SAP AG AP220 2-12

Make-to-Stock Production
Process
Plnd SD
ind.
req. Warehouse stock Sales
for finished prod. order
Production
Production Is not taken into
account for MRP
l Planned independent requirements trigger procurement and

production. Sales orders are not taken into account in planning.
l Goal: steady production even when demand fluctuates
ã SAP AG 2001
n Process in make-to-stock production:

Procurement quantities are planned using planned independent requirements before sales orders
are received.
Sales orders are not relevant for MRP, but they are always displayed for your information
(however, there is no pegging for sales orders in APO).
Production takes place in warehouse stock.
Sales orders are filled from stock. An availability check can be performed in the plant. Goods
withdrawals for a sales order reduce this sales order.
The planned independent requirements are reduced during the goods issue for delivery (To reduce
the demand program through outbound delivery to a sales order, the Ind.reqmts reduction indicator
must be set in Customizing for customer requirements class 30). The oldest planned independent
requirement is reduced first. The system first tries to reduce planned independent requirements in
the past. If there are no planned independent requirements in the past, the next planned
independent requirements in the future are consumed.
Planned independent requirements that are not reduced increase the warehouse stock of the
finished product and cause procurement to be reduced or, because of the stock level comparison,
not to take place at all in the next period.
(C) SAP AG AP220 2-13

Make-to-Stock Production: Master Data
R/3: Strategy group 10

Make-to-stock
Make-to-stock
APO: Req. strategy 10 production
production
ã SAP AG 2001
n Use: This requirements strategy is especially suited for the mass production environment and is often
combined with repetitive manufacturing. You choose this strategy if production is to be controlled by
a production plan and sales orders are not to directly influence production. One of the most important
characteristics of this planning strategy is that it allows you to smooth out the demand program.
n Examples from the industry:
Make-to-stock production is used by producers of consumer packaged goods since, for example,
the requirements for ice cream are very easy to plan and an individual order does not influence
production.
Additionally, strategy 10 is used for products with seasonal demand for which production must be
smoothed.
n Prerequisites: You must maintain requirements strategy 10 in the APO product master for the
finished product (Demand tab).
(C) SAP AG AP220 2-14

Planning with Final Assembly
Process
SD
Consumption
Consumption
Plnd
ind. Sales
req. Warehouse stock order
for finished product
Production
Production
l Planned independent requirements trigger procurement and

production. Sales orders affect requirements and consume them in
planning
l Goal: to quickly react to customer demand with as smooth a
production process as possible
ã SAP AG 2001
n Use: the main goal of planning with final assembly is to be able to flexibly react to customer
demand. The most important advantage of this requirements strategy is that you can quickly react to
customer demand. Smoothing the production plan is less important.
n Process for planning with final assembly
Planned independent requirements are entered at finished product level. This triggers the
procurement and production of the required assembly and components before sales orders are
received.
As soon as the sales order is received, it consumes the planned independent requirement. This
allows you to compare planning with the actual customer requirement. An availability check can
be performed while the sales order is being processed.
n Planning quantities that are not required increase the warehouse stock if they are not adjusted to the
customer requirement ("adjustment"). You can use report /sapapo/RM60RR20 to perform an
adjustment: All planned independent requirements that are not consumed are set to zero for the time
period selected in the report. This report can be scheduled periodically (for example, daily)
The report is comparable to report RM60RR20, which is available in the R/3 System.
n If the customer requirement quantity is larger than the planning quantity, a planned order for the
whole amount of the sales order is automatically created in the next requirements planning run,
which is more than just the quantity that was not planned.
An exact availability check can be performed in the sales order.
How sales orders consume planned independent requirements depends on the consumption mode
and consumption intervals.
(C) SAP AG AP220 2-15

Consumption Mode 1: Backward Consumption
Scenario A: Sales orders received are less than the planned quantity within the
consumption period
1. Enter planned
Planned order independent
requirements and
40 40 40 40 40 perform planning
40 40 40 40 40 Time
Plnd ind. reqmts
2. Enter sales order

Planned order and perform planning
again:
40 20 60 40 40 within the time range,
40 20 40 40 60 pieces are
Time
manufactured for the
Planned
Sales order: 60 pieces sales order and 20
independent
requirements/ pieces are
Backward consumption period manufactured make-
sales order
to-stock
ã SAP AG 2001
n The consumption mode determines the direction on the time axis in which the arriving sales orders
are to consume the planned independent requirements.
n Backward consumption (consumption mode 1) allows the customer requirement to consume planned
independent requirements that are chronologically before the customer requirement.
n Forward consumption (consumption mode 3) allows the customer requirement to consume planned
independent requirements that are chronologically after the customer requirement.
n Forward and backward consumption can be combined taking both periods into account (consumption
mode 2).
n The consumption mode and consumption periods can be defined in the APO product master for each
product and plant.
n Note: If consumption mode 1 and the backward consumption period are not maintained,
requirements are only consumed on the same day.
n You can display the consumption of planned independent requirements by sales orders in the
Product View on the Planning tab.
(C) SAP AG AP220 2-16

Consumption Mode 1: Backward Consumption
Scenario B: Sales orders received are larger than the planned quantity within the
consumption interval
1. Enter planned
requirements and
40 40 40 40 40 perform planning.
40 40 40 40 40 Time
Plnd ind. reqmts

40 100 40 40
again:
Within the time
40 40 40 Time range, 100 pieces
Planned are manufactured for
independent the sales order.
requirements/ Sales order: 100 pieces
sales order Backward consumption period
ã SAP AG 2001
(C) SAP AG AP220 2-17

Consumption Mode 2: Backward/Forward
Scenario B: Sales orders received are more than the planned quantity within the
backward consumption period
1. Enter planned
requirements and
40 40 40 40 40 perform planning
40 40 40 40 40 Time
Plnd ind. reqmts

100 20
again:
40 40
Within the time
40 20 40 Time range, 100 pieces
Planned are manufactured for
independent Sales order: 100 pieces the sales order
requirements/
sales order Backward con.period Forward con. period
ã SAP AG 2001
(C) SAP AG AP220 2-18

Consumption: R/3 Integration
Demand
APO
MRP 3
Planning Forecast
consumption mode
1 1
Consumption mode 2 Consumption mode 2
3 3
Bwd consumption per. 30 Bwd consumption per. 30
Fwd consumption per. 20 Fwd consumption per. 20
Consumption settings
from MRP group ? Transfer is the
same
ã SAP AG 2001
n The settings in the R/3 material master for the consumption of planned independent requirements by
sales orders are transferred via the R/3-APO interface. The R/3 consumption mode 4
(forward/backward) is not available in APO (but it is also less relevant in R/3). Therefore,
consumption mode 4 cannot be transferred from R/3.
n In the R/3 material master, an MRP group can also be used to assign consumption to the material.
When such a material is transferred to APO, these settings are checked and, if required, transferred.
If consumption values are found for a material both via the strategy group directly as well as via the
MRP group indirectly, the consumption value is taken from the strategy group.
(C) SAP AG AP220 2-19

Planning with Final Assembly: Master Data
R/3:
R/3: Strategy
Strategy group
group 40
40 Planning
Planning with
with
APO: Req. strategy
APO: Req. strategy 2020 final
final assembly
assembly
ã SAP AG 2001
n Prerequisites:
Maintain requirements strategy 20 the APO product master (Requirements view)
Set consumption parameters in the APO product master (consumption mode, forward and
backward consumption periods) to enable planned independent requirements to be consumed.
(C) SAP AG AP220 2-20

Subassembly Planning
1.
1. Planning
Planning at
at assembly
assembly level
level using
using planned
planned independent
independent requirements
requirements
SD
Make-to-stock/
Make-to-stock/
make-to-order
make-to-order Sales
production
production order
assembly
Final assembly
onn Dep. req./sec. res.
mppttiio
suum
Coonns
C
Warehouse
Warehouse Warehouse
Warehouse
Final
Plnd stock
stock assembly
assembly stock
stock assembly
assembly
Production
Production
ind.
req.
2.
2. Finished
Finished product
product consumes
consumes dependent
dependent requirements
requirements
ã SAP AG 2001
n Use: Planning for procurement at assembly level is ideal, for example, for production with variants
for which different finished products exist (possibly with an irregular requirements pattern which
does not allow for planning). It is more likely that an accurate requirements forecast can be given for
a certain assembly in this case than for variant-richness in the finished product.
The overall goal of planning at component level is to procure components in stock (without sales
orders) to be able to react to customer requirements as quickly as possible.
In such cases, final assembly can be visualized both as make-to-stock production as well as make-to-
order production.
n Process:
The planned independent requirement is entered at assembly level and triggers the manufacture of
assemblies (before the final assembly of the finished product).
When sales orders arrive for the finished product, the BOM (PPM) is exploded for the finished
product. Dependent requirements or reservations for the assembly are also generated for the
finished product by way of planned orders or production orders. They are consumed by
subassembly planning.
If sales orders, planned orders, or production orders cause the dependent requirements or
reservations to exceed the planning requirements of the assembly at finished product level, a
planned order is created for the assembly in the next planning run.
Planned independent requirements that are not consumed increase the warehouse stock of the
components and cause procurement to be reduced or not to take place at all in the next period.
(C) SAP AG AP220 2-21

Subassembly Planning: Consumption Periods
Scenario: Sales order received for finished product, dependent

requirements/reservations consume planned independent requirements
1. Enter planned
requirements for
40 40 40 40 40 assembly and
40 40 40 40 40 Time perform planning
Plnd ind. reqmts

again:
40 20 60 40 40 Within the time
40 20 40 40 range, 60 pieces are
Time manufactured for the
Planned
independent Dep. requirements: 60 pieces sales order and 20
requirements/ pieces are
dependent Backward con. period Forward con. period manufactured make-
requirements to-stock
ã SAP AG 2001
n The consumption logic is determined in the same way as the strategy planning with final assembly,
using the consumption mode and the forward and backward consumption periods.
n However, consumption takes place at assembly level. For this reason, consumption periods are
calculated using the dependent requirements or reservations.
n You can display the consumption of dependent requirements and planned independent requirements
in the Product View on the Planning tab.
(C) SAP AG AP220 2-22

Subassembly Planning: Master Data
Any
Any strategy
strategy
R/3:
R/3: Strategy
Strategy group
group 7070 ++ R/3:
R/3: Strategy
Strategy group
group 7070 ++
Mixed
Mixed MRP
MRP ind.=
ind.= 11 Mixed
Mixed MRP
MRP ind.=
ind.= 11
APO:
APO: Requirements
Requirements strategy
strategy 2020 ++ APO:
APO: Requirements
Requirements strategy
strategy 2020 ++
subassembly planning ind.
subassembly planning ind. subassembly planning ind.
subassembly planning ind.
Subassembly
Subassembly Subassembly
Subassembly
planning
planning planning
planning
ã SAP AG 2001
n Prerequisites:
• Maintain requirements strategy 20 as well as the Subassembly planning indicator in the APO
product master (Demand tab)
• Maintain the consumption parameters (consumption mode, forward and backward consumption
periods) in the APO product master (Demand tab).
• When you display this strategy in connection with a final assembly that takes place in make-to-
order production, you must also set the Always collective reqmnts indicator in the APO product
master (Demand tab).
(C) SAP AG AP220 2-23

Make-to-Order Production: Overview
Process
SD Procurement
Sales and Customer stock,
Delivery
order production finished product
Material A
Planning
SD
Sales Procurement
order Customer stock,
and Delivery
Material A finished product
production
Requirement reduction Goods issue
l Sales orders are filled by make-to-order stock

l Planning (planned independent requirements) is possible to allow
assemblies to be planned before sales orders are received
ã SAP AG 2001
n For make-to-order production, each sales order is planned separately and managed in its own section
in the MRP list or the current stock/requirements list
n There is no net requirements calculation between individual sales orders or with make-to-stock
inventory.
n In make-to-order production, exact lot sizes are always used in the standard system as the lot-sizing
procedure and without consideration of additional restrictions (such as, minimum/maximum lot size
or rounding value), regardless of what has been defined in the APO product master. The Lot-size
calulation in sales order planning indicator in the APO product master (Lot size tab) allows you to
specify that a certain lot-sizing procedure is also to be used in make-to-order production.
You can also set this from R/3 in the Check Lot-Sizing Procedure step in Customizing for Material
Requirements Planning. In the Lot size calculation for sales order planning field, you can define the
selection of the lot-sizing procedure for sales order planning.
n The Individual/collective requirements indicator allows make-to-order production to be used as far
into the BOM structure as required.
n The produced quantities cannot be exchanged between the individual sales orders, and inventory
management is carried out for the manufactured quantities directly for the individual sales orders (in
make-to-order stock).
n Make-to-order stock and the requirement are reduced by a goods issue to the sales order. As soon as
the sales order is complete and the make-to-order stock has been used up, the individual customer
segment disappears from the current stock/requirements list or MRP list.
n The production and procurement costs are managed specifically for the sales order in a billing order
or project.
(C) SAP AG AP220 2-24

Make-to-Order Production: Overview - Example
SD
Production: Sales order:
Sales Delivery
20 pieces 20 pieces
order for
material A:
20 pieces
Planning
SD
Sales Production: Sales order:
Delivery
order for 15 pieces 15 pieces
material A
15 pieces
ã SAP AG 2001
n Process:
Sales orders are planned as requirements for production under the sales order number. The
quantities produced for the individual sales orders cannot be changed. Each quantity is maintained
specifically for the individual sales order. In material requirements planning, a separate planning
segment is generated for make-to-order production.
Starting from the sales order, single-item planning can be done as far into the BOM structure as
required, which means even assemblies and components are specifically procured for the pegged
sales order and inventory management is carried out for this sales order.
The production and procurement costs are managed for the sales order in a billing order or project
at the sales order item level. This ensures a detailed analysis of the planned and actual costs.
n The net requirements calculation is done for each sales order individually, but there is no exchange
between different sales orders.
n The procurement element or planned orders are created with a reference to the sales order and
managed in an individual customer segment. This direct reference is also retained in the production
order.
(C) SAP AG AP220 2-25

Requirements Strategies for Make-to-Order
Production
Product
Name of requirements strategy master (APO)
Make-to-order production only -
30
Planning without final assembly
40
Planning with planning product
ã SAP AG 2001
n Make-to-order production is a process in which a product is specifically manufactured for a certain

customer. This strategy represents a production procedure for which each product is only produced
once, even if the same or similar manufacturing processes can be repeated after a period of time.
Each product is produced individually for a single customer, which means there is usually no
stockholding for the made-to-order products.
n Finished products are not produced until a sales order has been received. This means the make-to-
order production strategies always support a very close customer-supplier relationship, since their
sales orders are closely connected to production.
n Make-to-order production is also used in the environments production with variant configuration
and assemble-to-order.
n Prerequisites: Choose a make-to-order production strategy if:
• Stocks are to be listed separately for each sales order. This means that they are uniquely assigned
to certain sales orders.
• The costs must be tracked at sales order level and not at product level. Note: You may, however,
also display logistical make-to-order production and collect the costs at an R/3 product cost
collector for each product (instead of for each sales order item).
• Make-to-order production strategies are always to be combined with the lot-size key EX (lot-for-
lot). Rounding values should not be used. If you maintain rounding values, they have no effect due
to the make-to-order characteristics of these strategies. Consider the Lot-size calculation for make-
to-order planning indicator in the APO product master (Lot size view).
(C) SAP AG AP220 2-26

Requirements Strategies for Make-to-Order
Production: R/3 Integration
MRP 3 Demand
APO
Planning
Requirements
Strategy group PP strategy
Proposed strategy
20
Main strategy 50 30 Planning without final
assembly
60 40 Planning product
ã SAP AG 2001
n Planning strategies defined in the R/3 material master are transferred to the APO product master via
the R/3 APO interface. However, it must be noted that the logic is different in the two systems (even
the numbers describing the strategies are generally not the same in R/3 and in APO since often
several R/3 planning strategies can be represented in APO with one requirements strategy).
n Note on the Integration with Supply Network Planning (SNP): The planning strategies planning
without final assembly and planning with planning material are only supported in PP/DS and not in
Supply Network Planning.
n Use: This planning strategy is used when planning of the (superior) product is not required or not
possible.
Prerequisite: You are able to:
• Procure all of the required components within the whole replenishment lead time
• Plan at component level
• Sales orders are received very early (with reference to the replenishment lead time)
(C) SAP AG AP220 2-27

Make-to-Order Production Only
Process
SD
Sales
Make-to-order order
Make-to-order
stock
stock
l Sales orders trigger procurement and production.

l Goal: Each sales order is to be planned separately. Stocks and costs
are to be managed separately for each sales order.
ã SAP AG 2001
n For make-to-order production only (without planning of assemblies/components) procurement or

production are triggered by the sales order.
(C) SAP AG AP220 2-28

Make-to-Order Production Only: Master Data
R/3:
R/3: strategy
strategy group
group 20
20 Make-to-order
Make-to-order
APO: req. strategy
APO: req. strategy production
production
R/3
R/3 ++ APO:
APO: R/3
R/3 ++ APO:
APO:
set
set indiv./collective
indiv./collective set
set indiv./collective
indiv./collective
indicator
indicator indicator
indicator
ã SAP AG 2001
n Voraussetzung:
Pflegen Sie Strategiegruppe 20 im R/3-Materialstamm (Sicht Disposition). Im APO erscheint in
diesem Fall keine Bedarfsstrategie, da die APO-Bedarfsstrategien anders als die R/3-
Planungsstrategien lediglich die Vorplanung steuern. Der Kundenauftrag wird über die R/3-APO-
Schnittstelle mit der Bedarfsklasse übertragen, die z. B. aus der R/3-Hauptstrategie gezogen wird.
(C) SAP AG AP220 2-29

Make-to-Order Production Inheritance within the
BOM Structure
SD
Sales Sales
order order
material A material A Finished
Finished product
product
Redirecting to make-
to-stock production
Assembly Assembly
Assembly 22
Assembly 11
Redirecting to make-
to-stock production
Individual/collective indicator
for dependent requirements in
Component
Component 33 Component
Component 44 the product master
Individual requirement
(inheritance)
Collective requirement
(redirecting dep. requirements
to make-to-stock production)
ã SAP AG 2001
n The individual/collective requirements indicator in the APO product master defines whether a
component is procured for a specific customer requirement in an individual segment.
n If the Always collective requirement indicator is set, the material is produced or procured for
different requirements. The requirements can be found in the net requirements segment.
n If the Individual customer requirements indicator is set, the components are planned in the same way
as the subordinate assembly.
n This graphic shows an example in which two sales order planning segments are created for sales
orders A and B for assembly 1. There are dependent requirements in both individual customer
segments. For assembly 2, however, both dependent requirements appear in the normal net
requirements planning segment.
n The individual/collective requirements indicator can only be maintained in the product master in
APO.
(C) SAP AG AP220 2-30

Individual and Collective Requirements Indicators:
R/3 Integration
Product A
Material A APO
Demand
MRP 4
Dependent reqmnts
Dependent reqmt
Always collective reqmnts
Indiv./collect. 2 Only collective
Possible ind. cust. reqmnts
Order network (fix. peg.)
Product A
Material A APO
Demand
MRP 4
Dependent reqmnts
Dependent reqmt
Always collective reqmnts
Indiv. and collect.
Indiv./collect. Possible ind. cust. reqmts
1 Only individual
Order network (fix. peg.)
ã SAP AG 2001
n The settings for individual/collective requirements for dependent requirements are transferred from
the R/3 material master to the APO product master via the R/3-APO interface: If the
individual/collective indicator has the value "2" (only collective requirement),the Always collective
requirement indicator is set in the APO product. The Possible ind. cust. reqmnts indicator is set for
no value or a value of "1".
n Setting the individual/collective indicator via the R/3 BOM has no effect in the R/3-APO interface or
in APO.
(C) SAP AG AP220 2-31

Planning without Final Assembly: Planning
1.
1. Planning
Planning at
at finished
finished product
product level
level using
using planned
planned indep.
indep. reqmts
reqmts
r
r de
ne d o rsion
n ve
Pla t con r
Plnd
ho u a to
ind. wit indic Make-to-order
Make-to-order
Production planning run
req. production
production
Warehouse
Warehouse Warehouse
Warehouse stock,
stock,
Procurement
Procurement
stock,
stock, assembly
assembly assembly
assembly
ã SAP AG 2001
n Use: Just as with make-to-order production, planning without final assembly is a strategy in which a
product is specially produced for a customer. In addition to make-to-order production, however,
certain assemblies must have already been produced or procured before the sales order is received
for the finished product. Production does not extend to the finished product level at first. The product
is produced up to the production stage before final assembly, which means the assemblies and
components are stored until the sales order is received. Final assembly is triggered when the sales
order is received. It makes sense to use this strategy when a large part of the value chain process is in
the final assembly.
n Planning that is not dependent on sales orders is performed using planned independent requirements.
They are entered for the finished product. For these requirements, the production planning run first
generates planned orders for the finished product which cannot be converted to a production order
(in R/3, planned orders without a conversion indicator and the order type “VP“ and in APO, planned
orders without conversion indicator). The conversion cannot take place until the sales order is
received and triggers final assembly. At assembly level and component level the production planning
run generates planned orders if there is a material shortage. These planned orders can be converted to
a production order or a purchase requisition since production and procurement are already to be
triggered for the lower production levels before the sales order is received.
n The planning without final assembly strategy allows for short delivery times (since production can
access available assemblies and components immediately), without the product having been
assembled ahead of time.
(C) SAP AG AP220 2-32

Planning without Final Assembly: Sales Order
er
to -ord r
ke - rde
Consumption
Consumption Ma ned o
n
SD
pla
Plnd
ind. Make-to-order
Make-to-order
assembly
Final assembly
production Sales
req. production
order
Final
Warehouse
Warehouse Warehouse
Warehouse
stock
stock assembly
assembly stock
stock assembly
assembly
2.
2. Consumption
Consumption by
by sales
sales order
order
ã SAP AG 2001
n Final assembly is triggered when the sales order is received. The sales order appears within a sales
order planning segment in which planning is performed separately for the sales order. The next
production planning run generates a planned order which can be converted for the newly created
sales order in the sales order planning segment. This makes final assembly possible. In the planning
segment, however, the planned order quantity of the planned order without the conversion indicator
(and in R/3 with the order type “VP”) is reduced in accordance with the new requirements situation.
n The sales order is managed within one sales order planning segment with this strategy. If you do not
want to do this, the sales order can also be managed in the net requirements planning segment (R/3
planning strategy 52). If you do this, you must work with the lot-sizing procedure "exact lot size".
Additionally, neither the rounding value nor the rounding profile may be maintained as either the
minimum or maximum lot sizes. Furthermore, stocks are not taken into account (as in R/3). To
display this strategy in APO, you must set the planning segment indicator to 2 (planning without
final assembly, without individual requirements) in Customizing for Requirements Strategies for the
requirements strategy planning without final assembly. At this time, however, the strategy cannot yet
be set since consumption has not yet been realized. It will be realized in a later release .
n This strategy as well as the strategy planning with a planning material are the most commonly used
strategies in a make-to-order production environment.
(C) SAP AG AP220 2-33

Planned Orders in the Planning Segment
Capacity
reqmts plng
Subcontracting
External procurement
Planned order in
planning Stock transfer
segment
Cannot be converted!
ã SAP AG 2001
n Planned orders in the planning segment for which the conversion indicator is not set (and in R/3
with the order type VP) can be procured via external procurement, subcontracting, stock transfer, or
direct production.
n They cannot be converted to production orders or purchase orders.
n Capacity requirements planning can be performed for planned orders in the planning segment.
(C) SAP AG AP220 2-34

Planning without Final Assembly: Master Data
R/3:
R/3: Strategy
Strategy group
group 50
50 Planning
Planning without
without
APO:
APO: Reqmts strategy 30
Reqmts strategy 30 final
final assembly
assembly High value
chain and/or
configuration
Storage level
Assembly
Assembly Assembly
Assembly
Limited
value chain
Individual/collective
Individual/collective ind.
ind. ==
Always
Always collective
collective reqmt
reqmt
ã SAP AG 2001
n Prerequisites:
Maintain requirements strategy 30 in the APO product master (Requirements view)
Maintain the Always collective requirement individual/collective indicator for the assemblies in
the APO product master (Requirements view) that are to be procured and stored before the sales
order is received.
(C) SAP AG AP220 2-35

Planning with a Planning Product
1.
1. Planning
Planning with
with planning
planning product
product using
using planned
planned independent
independent reqmts
reqmts
er Not
d ord nd. produced!
nne s. i
Plnd Pla onver
c Planning
Planning product
product Make-to-order
Make-to-order
ind. w/o
req. stock
stock
Warehouse
Warehouse stock,
stock, Warehouse
Warehouse stock,
stock, Warehouse
Warehouse stock,
stock,
Procurement
Procurement
non-variable
non-variable part
part 11 non-variable
non-variable part
part 22 variant
variant part
part
ã SAP AG 2001
n The requirements strategy planning with planning product is used when different finished products
are identical with regard to essential assemblies.
n A planning product that contains the common assembly and its BOMs is defined for this purpose.
n Planning takes place for the planning product and triggers the production and procurement of the
components of the planning product.
n Examples from the industry: this strategy allows for the planning of different sizes or packages for
a product. For example, you want to sell a product in packages that:
• Contain 1 or 2 liters
• Are labeled in German, English and Japanese
• Contain, for example, detergent, chocolate cookies, medicine with a high non-variable part in
different packaging forms (variant part)
(C) SAP AG AP220 2-36

Planning with Planning Product: Sales Order
Consumption
Consumption
SD
Plnd Sales
Planning
Planning product
Make-to-order
ind. order
stock
assembly
stock
Final assembly
req.
Final
Warehouse
Warehouse stock,
stock, Warehouse
Warehouse stock,
stock, Warehouse
Warehouse stock,
stock,
non-variable
non-variable part
non-variable part
part 22 variant
variant part
part
2.
2. Consumption
Consumption by
by sales
sales order
order
ã SAP AG 2001
n When a sales order is received for the product to be sold, you can check whether or not the planning
quantities of the planning product are sufficient in sales order processing (availability check as
planning check).
n The sales order for a finished product which refers to the planning product reduces the planning of
the planning product and triggers the final assembly at the same time.
n The sales order is managed in a make-to-order planning section for this strategy. If you do not want
to do this, you can also manage the sales order in the net planning section. At this time, however, the
strategy cannot be used since consumption has not been realized. It will be realized in a later release.
(C) SAP AG AP220 2-37

Planning with Planning Product: Consumption
Period
Scenario: Sales order received for finished product, sales order consumes planned
independent requirements of the planning product
1. Enter planned
requirements for
40 40 40 40 40 planning product and
40 40 40 40 40 Time perform planning
Plnd ind. reqmts Planning quantities of the
planning product
2. Enter sales orders

Planned order (for the material that
has not been
40 40 60 40 40 planned) and perform
40 40 40 planning again.
Time
Planned
independent Sales order: 60 pieces
requirements/
dependent Backward con. period Forward con. period
requirements
Consumption
ã SAP AG 2001 period starting from the sales order of the planning product
n The consumption periods are calculated starting from the sales order for the planning product.
Consumption periods and consumption modes are read, however, from the product master of the
planning product.
n Consumption takes place by sales orders that are received for the finished products that refer to the
planning products. These finished products are linked to the planning product via a product
hierarchy.
n To ensure consistent quantity reduction, it is important that all assemblies contained in the BOM of
the planning product are really contained in each finished product that references this product.
Caution is recommended when making changes to BOMs.
n This strategy has the same basic characteristics as the strategy planning without final assembly.
Additionally, many materials can consume the planned independent requirements of a planning
product.
n The "variant" components cannot be planned exactly with this strategy. Instead, proceed as follows:
• Set up the variant component as consumption-based.
• Plan the variant components independently using a planning strategy for components. For more
information, see assembly planning.
• Accept overplanning or underplanning for the variant components.
(C) SAP AG AP220 2-38

Planning with Planning Product: Master Data
R/3:
R/3: Strategy
Strategy group
group 60
60 R/3:
R/3: Strategy
Strategy group
group 60
60
APO:
APO: Reqmts
Reqmts strategy
strategy 40
40 APO:
APO: Reqmts strategy 40
Reqmts strategy 40
R/3
R/3 ++ APO:
APO: Consumption
Consumption mode
mode and
and R/3:
R/3: Enter
Enter planning
planning material
material
period
period
Planning
Planning product
Make-to-order
stock
stock
R/3: BOM
APO Product hierarchy
Warehouse
Warehouse stock,
stock, Warehouse
Warehouse stock,
stock, Warehouse
Warehouse stock,
stock,
non-variable
non-variable part
non-variable part
part 22 variant
variant part
part
R/3+APO:
R/3+APO:
R/3+APO:
R/3+APO: Einzel/Sammel-Kz.
Einzel/Sammel-Kz.
Indiv./collective
Einzel/Sammel-Kz.
indicator
R/3+APO:
R/3+APO: Einzel/Sammel-Kz.
Indiv./collective indicator
====always
immer
=immer
immer
= immer
always aSammelbedarf
Sammelbedarf
collective
Sammelbedarfreqmt
Sammelbedarf
a collective reqmt
Notes on master data maintenance in R/3:

1. Planning product must have already been created and its final products
assigned.
2. BOM for planning material with non-variable parts must be created
ã (non-variable
SAP AG 2001 parts must be contained in the BOM of the finished product)
n Prerequisites:
Create a separate material master record for the planning material in R/3. In the R/3 material
master of the planning material, enter strategy 60, the consumption mode and the consumption
periods.
Enter the planning material and strategy 60 in the R/3 material master records of all finished
products that are to be planned with this planning strategy.
Create a BOM for the planning material in R/3 which contains all non-variable parts.
The planning material and its final product were transferred via the APO-CIF interface to APO.
The requirements strategy 40 is automatically assigned to the planning product and its finished
products in APO. Furthermore, a product hierarchy with the planning product is automatically
created as the top node in APO from the BOM for the planning material (see APO Customizing
Master Data -> Hierarchy).
The master data from demand planning (characteristic value combinations) contains the planning
products, not the finished products.
Maintain the individual/collective indicator Always collective requirement for the assemblies in
the APO product master (Demand tab), that is to be procured and stored before the sales order is
received.
(C) SAP AG AP220 2-39

Planned Independent Requirement Reduction for
Requirements Planned independent requirements

strategy reduction through ...
10 Goods issue (sales order, make-to-stock)

20 Goods issue (sales order)
ã SAP AG 2001
n In general, planned independent requirements are reduced by goods issue postings in R/3 inventory
management. The movement type assigned, however, must allow the reduction of planned
independent requirements. For each movement type, you can define whether or not a requirements
reduction may take place in inventory management (R/3 Customizing Materials Management ->
Inventory Management and Physical Inventory-> Movement Types -> Copy, Change Movement
Types). The default movement types are set.
n For the strategy make-to-stock production the planned independent requirement is reduced by the
goods issue. The oldest planned independent requirement is reduced first (the system searches from
the past in the direction of the today's date according to planned independent requirements). Planned
independent requirements in the future are also reduced by goods issues as long as there are no
planned independent requirements in the past. For a goods issue to a sales order from stock, the
planned independent requirement of make-to-stock production is also reduced if this has been
defined in the R/3 requirements class (Planned independent requirements reduction for make-to-
stock production indicator).
For the production by lots size strategy, the sales order requirement is reduced by the withdrawal for
the sales order, the planned independent requirement by the sale from stock (compare to make-to-
stock production strategy).
n For the strategy planning with final assembly the planned independent requirement is reduced by
the goods issue. Planned independent requirement reduction takes place in the same way as
consumption (see consumption mode and consumption period in the APO product master). If
backward consumption has been set in the product master with a consumption period of 100 days,
the sales order is used to calculated the next earliest planned independent requirement within these
100 days and it is reduced.
n For the strategies planning without final assembly and planning with planning product, planned
independent requirement reduction takes place in the same way as for the strategy planning with
final assembly.
(C) SAP AG AP220 2-40

n For the strategy assembly planning, the reduction of the assembly planning requirement takes place
via a goods issue to the production order or cost center.
(C) SAP AG AP220 2-41

Further Options for Consuming Planned
Independent Requirements
Planned ind. reqmts already

consumed
Planned BEFORE
Start End
ind. reqmts
Time
Consumption
Customer requirements
Planned AFTER
Start End
ind. reqmts
Time
Customer requirements
Report /sapapo/RM60RR20
ã SAP AG 2001
n Planned independent requirements can be consumed in the following ways:

With goods issue postings in R/3 Inventory Management: The quantities of consumed
independent requirements are reduced to zero and the dates remain the same.
Using the report /sapapo/RM60RR20 to adjust planned independent requirements (requirements
adjustment): Planning quantities that are not required increase the warehouse stock if they are not
adjusted to the customer requirement ("adjustment"). You can use report /sapapo/RM60RR20 to
perform adjustment: All planned independent requirements that are not consumed are set to zero
for the time period (start, end) selected in the report.
The report sapapo/RM60RR20 can be scheduled for the adjustment of quantities periodically (for
example, daily). You use this report when you want to generate the planned independent
requirements in APO (via APO Demand Planning).
If you want to generate the planned independent requirements in R/3, report RM60RR20 should be
used in R/3. This report is comparable to report /sapapo/RM60RR20 in APO.
Report /sapapo/RM60RRM is not to be confused with report sapapo/om_reorg_daily for Supply
Network Planning, which adjusts all planned independent requirements within the forecast horizon
to the quantity zero, regardless of whether or not there is consumption by a sales order. The
forecast horizon can be maintained in the APO product master (SNP view).
(C) SAP AG AP220 2-42

Use of a Requirements Strategy that Optimally
Supports the Business Process
Markets
Strengthening of Competitive Position
Customers
Short delivery times
?
Higher customer satisfaction
Company
Limited capital tie-up
ã SAP AG 2001
(C) SAP AG AP220 2-43

Customizing for Requirements Strategies
Requirements
strategies
SD
Plnd
ind. Sales
reqmts order
Consumption?
Customizing for
requirements strategies
Production /
Customer
Purchasing
ã SAP AG 2001
(C) SAP AG AP220 2-44

Determination of the Assignment Mode for Sales
Orders
SD
Sales Receives an assignment mode from R/3 via a requirements class
order
R/3 strategy group with main strategy from R/3 material master
R/3 planning strategy (main strategy)
R/3 requirements type/requirements class
Definition of the requirements class in APO as check mode (ATP

Customizing)
Assignment of assignment mode in check mode (ATP Customizing)
The APO assignment mode is used to control whether a sales order consumes a
planned independent requirement in APO. The assignment mode is determined using
the R/3 requirements class of the sales order. The R/3 requirements class controls the
type of availability check in APO.
ã SAP AG 2001
n The strategy group in R/3 is used to combine several planning strategies. It can be defined in
Customizing for Demand Management in the step "Determine Strategy Group" and assigned in the
R/3 material master (MRP view) via the Strategy group field (or the strategy group can be assigned
to a material via the MRP group in the R/3 material master, MRP view).
n When the sales orders are created, the customer independent requirements type is taken that is
defined in the main strategy of the strategy group assigned to the material as long as the
requirements type is not overwritten by the user parameter or manual entry when a sales order is
created: the customer independent requirements type can be accessed in Procurement view of the the
sales order item in the sales order.
The customer independent requirements type can also be determined via the item type of the sales
order as long as a strategy group is not assigned to the material (in Customizing for Sales, under
Determining the Requirements Type via the Operation).
n The planning strategy represents a useful procedure for planning a material in R/3. It contains, for
example, a requirements type for sales order management. The requirements type is assigned to
exactly one requirements class. The requirements class therefore presents a type of "allowed values"
for the requirements type settings. Changes to the requirements type are therefore made via the
corresponding requirements class.
n The requirements class is used, for example, to control how customer requirements are to consume
the planning requirements.
Requirements classes in the R/3 System are defined for sales order requirements classes in
Customizing for SD.
n The requirements class must be created in APO as the check mode (In APO Customizing for ATP,
choose General Settings). An assignment mode is maintained in the check mode. This specifies
which sales orders consume the forecast (planned independent requirements).
(C) SAP AG AP220 2-45

Definition of Requirements Classes in R/3
Requirement Costing
Availability
Requirements transfer to R/3
Consumption in R/3
Requirements reduction in R/3
MRP relevance in R/3
Account assignment
A B
XX XX
ã SAP AG 2001
n The requirements class controls requirements-relevant functions for SD in logistics. In the

requirements class, for example, the type of availability check is determined for whether the
requirement is MRP relevant (No MRP field).
n Furthermore, data can be defined that is later used in controlling (for example, the settlement profile
for the consumption of a requirements class).
(C) SAP AG AP220 2-46

Using Requirements Strategies to Control
Consumption
SD
APO
Plnd Consumption
Consumption
ind. Sales Product A
reqmts order
Product A Demand
Reqmts strategy
- Contains categories that are Receives Proposal strategy
defined behind the requirements Planning with final
requirements strategy of classes from R/3 20 assembly
the product in Customizing
- Is consumed by a sales Customizing for Requirements Strategies
order with the assignment
Reqmts strategy 20 Planning with final
mode 1 assembly
Planning parameters
Category FA Plnd ind. reqmts
Planning segment Net/individual

planning
Customizing for category groups Planning version
Cat. group Category Assignment

Assignment mode Assignment of sales order to
1
K01 BM Sales order planning with final assembly
Category group K01 Consumption by sales orders
...
ã SAP AG 2001
n Category: The categories describe the different stock, receipt, requirements, and forecast types in
the APO System. The standard system contains categories that represent the R/3 MRP elements. For
non-SAP systems, further categories can be created.
n Planning segment indicator: Shows the planning segment that is used to cover the requirement.
Planning segment 0: Choose this planning segment for make-to-stock production, that is, when
using requirements strategy 10 or 20. The requirement is covered by the warehouse stock.
Planning segment 1: Choose this planning segment for make-to-order production, that is, when
using requirements strategy 30. The requirement is covered by stock reserved for individual sales
orders.
Planning segment 2: Choose this planning segment if you have created your own planning strategy
for planning without final assembly and without make-to-order production (in accordance with
planning strategy 52 in R/3). This type of strategy allows you to procure components according to
the forecast. Stock at the finished product level is not taken into account for production.
Production of the finished product does not take place until the sales order is received. The
requirement is covered by the warehouse stock.
n Name of the planning version: You can create different planning versions for each supply chain
model in APO in simulation. At any time, however, only one model and one of its versions is active.
Consumption can take place for requirements of an inactive planning version.
n Assignment mode: Specifies how sales orders consume the forecast. For each requirements strategy,
only one comsumption type may be used.
n Category group: Group of different categories that are used.
(C) SAP AG AP220 2-47

Using Requirements Strategies to Control
Consumption: Example
APO
Material A
Product A
MRP 3
Planning Demand
Strategy group 40 Requirements
strategy
Default strategy
Main strategy 40
20 Planning with final
assembly
Planning with final assembly

SD Plnd
Sales Sales order with Planned ind. reqmt
with category FA ind. reqmts
order requirements type KSV
Sales order
with requirements class 050
Assignment ind. 1(Assignment of Consumption Assignment ind. 1

sales order to planning with final
assembly)
Problem: If, instead of sales orders, dependent requirements (category AY) which do not "bring"
an assignment mode from R/3 are to consume from R/3, the category group can specify that not
only category BM (sales order) but also category AY (dependent requirements) may consume.
ã SAP AG 2001
(C) SAP AG AP220 2-48

Availability Check (ATP Check) in Sales Orders
Sales order
R/3 Confirmation APO

ATP request
Sales
Sales (SD) ATP
ATP check
check
Save sales order For non-availability Produce
Sales
Sales order
order Production
Production Planning/
Planning/
Detailed
Detailed Scheduling
Planned order
Planned
Planned order
order
MRP Update time series
ã SAP AG 2001
n In the R/3-APO interface, you can specify in the integration model that the availability check (ATP
check) in the sales order is not to be performed in R/3, but rather in APO (Availability check
indicator). If you create a sales order in the R/3 System, the system first checks whether there is
enough stock available for this product. It can also check whether receipts (such as production orders
or planned orders) are scheduled before the desired date.
n For non-availability, you can specify in APO that the system is to perform an availability check for
the product in a different location or for an alternative product. Furthermore, if a product is not
available, you can define that the sales order can trigger production directly. In this case, it triggers
an order for in-house production and APO creates a planned order for the desired quantity in PP/DS.
All of the operations of the PPM are scheduled at the resources of the PPM, and the system takes the
capacity restrictions into account (available capacity and orders that may have already been
scheduled). In addition, the availability of the components can be checked (Automatic planning
indicator in the product master of the components). If the capacities are already exhausted on the
desired date, the system uses simultaneous material and capacity requirements planning to find a date
on which the planned order can be created.
n The availability date of the newly created planned order (finish date) is passed back to the R/3 sales
order and copied as the internal confirmation date. Delivery scheduling is used to determine the date
in the sales order on which the customer can receive the product. The sales employee can find this
delivery date in the R/3 sales order. When you confirm this proposed date in the sales order and save
it, the APO planned order, which was only simulated, is transferred back to R/3 and is visible there.
(C) SAP AG AP220 2-49

Integration of Availability Check and Sales Order -
Production
Resource availability
Sales order
Available 1st Loading attempt
Occupied Final loading and quantity quantity/date
Resource 3
Resource 2
Resource 1
Time
Today
ã SAP AG 2001
n If a product is not available, the sales order can trigger production directly: If it triggers an order for
in-house production, APO creates a planned order for the desired quantity in PP/DS. All of the
operations of the PPM are scheduled at the resources of the PPM, and the system takes the capacity
restrictions into account (available capacity and orders that may have already been scheduled).
If the capacities are already exhausted on the desired date, the system uses simultaneous material and
capacity requirements planning to find a date on which the planned order can be created. You use the
strategy profile to define how the system is to schedule (search for a slot, infinite planning ...).
n Prerequisite:
In the "rules-based availability check", define that production is to be triggered directly for non-
availability (this function can be used in connection with all requirements strategies in planning).
Maintain the strategy profile with which you want to trigger the scheduling of planned orders from
the ATP integration under Global Settings in Customizing for PP/DS, in the Strategy profile for
ATP integration field. The default strategy profile in the delivery system is SAP001 (search for a
slot backward).
(C) SAP AG AP220 2-50

Business Scenario: Summary
l Requirements strategies for make-to-stock

production: make-to-stock production, planning
with final assembly, assembly planning
l Requirements strategies for make-to-order
production: Make-to-order production only,
planning without final assembly, planning with
planning product
l Customer requirements consume planning
depending on the requirements strategy and using
the consumption mode and consumption periods.
l The requirements strategies are defined in
Customizing
ã SAP AG 2001
(C) SAP AG AP220 2-51

Settlement for Forecast-Controlled Products - Exercises
Optional exercise (not part of the standard course –
can be completed by the participants at the end of
the course)
Unit: Settlement for Forecast-Controlled Products
(make-to-stock production)
At the conclusion of these exercises, you will be able to:

• explain the functions of the make-to-stock production strategy
and
• in particular, describe the effect of a sales order on the make-
to-stock production strategy.
Maxitec Computers AG uses make-to-stock production on site.

The make-to-stock production strategy is used. Personal
computers are produced, placed in storage and sold.
1-1 Enter planned independent requirements for material T-F11## in the R/3 system for
plant 1200 (Dresden production plant) (## should be replaced by your group
number). Proceed as follows:
1-1-1 Check the material master: Check that strategy group 10 (make-to-stock
production) is set in planning 3 view for plant 1200 in the material master
for personal computer T-F11##.
1-1-2 Enter the independent requirements for material T-F11## in plant 1200 in
the R/3 demand management. Select the week schedule line as the period
schedule line by entering indicator W in the planning period field in the
initial screen of the transaction. Enter the following independent
requirements for personal computer T-F11## in plant 1200:
Current week Current

+1 week + 2
500 500
Mark the line where you typed the planned independent requirements and
select the Schedule tab.
Now divide the weekly requirements into workdays:
To do this, enter the indicator for Day in the allocation indicator field for
all weekly requirements and select Enter.
(C) SAP AG AP220 2-52

Save your entries.
Note: For training purposes, the planned independent requirement may also
be created directly in the APO product view by entering a negative quantity.
However, you should not do this here; planned independent requirements
that are created in APO are not automatically visible in R/3. Planned
independent requirements that are created in R/3 are, however, also visible
directly in APO.
1-2 Now view the planned independent requirements for the APO product T-F11## in
location 1200 (Dresden production plant) in the APO product view.
Note the date of the second planned independent requirement:
____________________________________________________________
Carry out a plan in the product view to create planned orders for the newly created
requirements.
Note: If the product had been set to automatic planning immediately in the APO
product master (PP/DS tab), planning would have been automatically carried out
for the product when a new requirement was entered.
(C) SAP AG AP220 2-53

1-3 Now create a sales order in the R/3 system and note how it influences the planning.
1-3-1 Create a sales order of 10 pieces for personal computer T-F11## in the R/3
menu for sales and distribution. The date should lie 4 days after the second
planned independent requirements date. Use the following data:
Field Value
Order type Standard order
Sales organization 1000
Distribution channel 10
Division 00
Ordering party 1171
Issuing plant 1200
Purchase order number 4711##
Desired delivery date 4 days after the second planned
independent requirements date,
as noted above.
Material T-F11##
Quantity 10 pieces
Confirm your entries using Enter.

Save the customer requirement.
1-3-2 Now view the sales order for APO product T-F11## in location 1200
(Dresden production plant) in the APO product view.
Carry out planning in the product view.
Was the sales order taken into account in some form in planning? Does the
sales order influence the planned independent requirements or the planned
orders?
_____________________________________________________
(C) SAP AG AP220 2-54

Exercises

(Planning with final assembly)

• explain the function of the final assembly planning strategy
and
• in particular, describe the effect of a sales order on the
planning strategy.
Maxitec Computers AG produces on site. You should now use

the planning with final assembly strategy. Personal Computers
are produced, stored and sold. Sales orders influence the planning
here.
plant 1200 (Dresden production plant) (## should be replaced by your group
2-1-1 Check the material master: Check that strategy group 40 (planning with
final assembly) is set in planning 3 view for plant 1200 in the material
master for personal computer T-F13##.
Which consumption mode and which consumption interval are maintained?
______________________________________________________
(C) SAP AG AP220 2-55


+1 week + 2
500 500
Mark the line where you typed the planned independent requirements and
select the Schedule tab.
Now divide the weekly requirements into workdays:
To do this, enter the indicator for Day in the allocation indicator field for
all weekly requirements and select Enter.
Save your entries.
directly in APO.
____________________________________________________________
requirements.
planned independent requirements date. Use the following data:
Field Value
(C) SAP AG AP220 2-56

Division 00
Ordering party 1171
Issuing plant 1200
as noted above.
Material T-F13##
Quantity 10 pieces

Does the sales order influence the planned independent requirements?
_____________________________________________________
After the settlement, the planning must adapt the planned orders to the new
requirements situation as a sales order has been added.
Was the sales order taken into account in some form in planning?
_____________________________________________________
2-4 Analyze the settlement between the sales order and the planned independent
requirement. To do this choose the Planning tab in the Product view.
2-4-1 Which planned independent requirement was consumed with the sales
order?
____________________________________________
(C) SAP AG AP220 2-57

Exercises

can be completed by the participants at the end of
the course)
Unit: Settlement for Forecast-controlled Products
(Assembly planning)

• explain the functions of assembly planning,
• monitor settlement of assembly independent requirements
against dependent requirements or reservations, which are
created from the procurement elements for the end product.
Maxitec Computers would like to reduce the delivery times for

personal computers, and so procurement of assemblies should not
be triggered by planning for the finished product but already in
advance. This will reduce the total replenishment lead time for
the finished product.
3-1 You wish to plan assemblies to reduce the delivery time of personal computers T-
F14##. To do this you must create planned independent requirements for the
assemblies of personal computer T-F14##. We will carry out subassembly planning
on the example of assembly T-B62## (Hard Disk) in plant 1200 (Dresden
production plant).
3-1-1 Check the material master: Check that strategy group 70 (assembly
planning) is set in planning 3 view for plant 1200 in the material master
for assembly T-B62## (Hard Disk).
Also check if the mixed material requirements planning field is set to 1
(assembly planning).
Which consumption mode and which consumption interval are maintained?
______________________________________________________
(C) SAP AG AP220 2-58

3-1-2 Enter the independent requirements for assembly T-B62## (Hard Disk) in
plant 1200 in the R/3 demand management. Select the week schedule line
as the period schedule line by entering indicator W in the planning period
field in the initial screen of the transaction. Enter the following independent
requirements for assembly T-B62## (Hard Disk) in plant 1200:

+1 week + 2
100 100
Save your entries.
directly in APO.
3-2 Now view the planned independent requirements for assembly T-B62## (Hard
Disk) in location 1200 (Dresden production plant) in the APO product view.
____________________________________________________________
requirements.
(C) SAP AG AP220 2-59

planned independent requirements date for assembly T-B62##. Use the
following data:
Field Value
Division 00
Ordering party 1171
Issuing plant 1200
independent requirements date
for assembly T-B62##, as
noted above.
Material T-F14##
Quantity 10 pieces

From the product view, carry out planning for personal computer T-F14##
in order to create a planned order for the sales order.
As you have enough stock available, the system has not created a new
planned order. Therefore, for the purposes of this demo, create a planned
order manually for finished product T-F14## (availability date: 4 days after
the second planned independent requirements date).
(C) SAP AG AP220 2-60

Check whether the planned order from the T-F14## Personal Computer
contains the assembly T-B62## (Hard Disk) as a planned order. If this is the
case, the planned order will deduct a dependent requirement for assembly T-
B62##-
_____________________________________________________
Note: In this case the availability check will carry out a check for stock in
the sales order. The system can also be set so that production of the end
product is triggered automatically if there is no stock available, and that the
system checks for availability of components. Since the components were
procured through the assembly planning, the system was able to check
against the assemblies and confirm final assembly for the sales order when
assemblies are available.
3-3-3 Now view the planning situation for APO product T-B62## (Hard Disk) in
Does the dependent requirement influence the planned independent

requirements?
_____________________________________________________
Therefore, carry out planning for assembly T-B62## (Hard Disk) from the
product view.
Was the dependent requirement taken into account in some form in

planning?
_____________________________________________________
3-4 Analyze the settlement between the dependent requirement and the planned
independent requirement. To do this choose the Planning tab in the Product view.
3-4-1 Which planned independent requirement was consumed with the dependent
requirement?
____________________________________________
(C) SAP AG AP220 2-61

Exercises
optional exercise (only if there is enough time)

(Planning without final assembly)
At the conclusion of this exercise, you will be able to:
• trigger production of an assembly using the planning without

final assembly strategy by created planned independent
requirements for the end product, without the final assembly
taking place
• create customer requirements in order to trigger final assembly

of pre-produced assemblies. You create customer requirements
based on ease of use instead of sales orders.
• explain how sales orders are settled against make-to-stock

planning (planned independent requirements).
In your plant 1000 in Dresden, pumps are assembled specifically
for a sales order. To allow for a short delivery time to the
customer, procure the assemblies before the sales order is entered.
As, however, a high value creation is connected to the final
assembly, the final end assembly can only occur when the sales
order is entered.
plant 1000 (Hamburg production plant) (## should be replaced by your group
4-1-1 Change R/3 material master: Change the strategy group to 50 (planning
without final assembly) in view schedule 3 for plant 1000 in the material
master for pump T-F2##.
You should avoid periodically starting incremental data transfer (transfer of

changed fields in the R/3 master data) at this stage. The incremental data
transfer of master data fields is not set to “Realtime” in this system.
(C) SAP AG AP220 2-62

Therefore, please change the requirements strategy manually in the APO
product master to 30 (planning without final assembly).
You should also change the automatic planning immediately indicator on

the PP/DS tab to automatic planning in planning run.
Note: The requirements are transferred to APO in accordance with the

requirement strategy set in APO.
Current week
+1
25
Save your entries.
directly in APO.
(C) SAP AG AP220 2-63

location 1000 (Hamburg production plant) in the APO product view.
____________________________________________________________
requirements.
Do the planned orders generated for the pump have a conversion indicator? Is it
possible to trigger the final assembly for material T-F2## already at this stage?
____________________________________________________________
Check the planning situation for assembly T-B1## (casing) in location 1000 in the
APO product view.
Do the planned orders generated for the assembly have no conversion indicator
either like those generated for the finished product? Can assembly be completed at
this stage?
____________________________________________________________
(C) SAP AG AP220 2-64

4-3 Let us now assume that we have already produced assembly T-B1##
(casing) and that this is now in storage.
Assume that a sales order has just been entered in sales for the final product T-F2## (pump).
The finished product should be assembled in make-to-order production.
Now create a sales order in the R/3 system and note how it influences the planning.
menu for sales. The date should lie 4 days after the second planned
independent requirements date. Use the following data:
Field Value
Division 00
Ordering party 1000
Issuing plant 1000
as noted above.
Material T-F2##
Quantity 10 pieces

Note the sales order number:
_____________________________________________________
(C) SAP AG AP220 2-65

(Hamburg production plant) in the APO product view.
_____________________________________________________
_____________________________________________________
Do the new planned orders generated for the pump have a conversion
indicator? Is it possible to trigger final assembly for material T-F2## at this
stage?
_____________________________________________________
4-4 Analyze the settlement between the sales order and the planned independent
requirement. To do this choose the Planning tab in the Product view.
order?
____________________________________________
4-4-2 Are 10 additional pumps produced after the arrival of the sales order or does the sales order reduce the
planned independent requirement (make-to-order planning) by 10 pieces
_____________________________________________________
4-4-3 Is the final assembly of the pumps carried out in make-to-order production or make-to-stock production?
_____________________________________________________
(C) SAP AG AP220 2-66

4-5 So that the following exercises can be carried out without influencing the
transaction data created above, delete the planned independent requirements and the
sales order in the R/3 system from the system. You should also change the
strategies back to the previous values.
Proceed as follows:
4-5-1 R/3-Menu path: Logistics → Production → Production planning →
Demand Management → Planned independent requirement → Change
Material: T-F2##
Plant: 1000
Choose Enter.
Mark the lines with the planned independent requirements and choose
delete.
Then choose Save.
4-5-2 R/3-Menu path: Logistics → Sales and Distribution → Sales → Order → Change
Choose the sales order number given above.
Choose Enter.
Mark the sales order position and select
Edit → Fast change → Reason for cancellation
Choose Cancelled as requested by customer
Choose Save.
4-5-3 Change R/3 material master: Change the strategy group to 40 (planning with final assembly) in view
schedule 3 for plant 1000 in the material master for pump T-F2##.
You should avoid periodically starting incremental data transfer (transfer of changed fields in the R/3 master data)
at this stage. The incremental data transfer of master data fields is also not set to “Realtime” in this system.
To do this you should change the requirements strategy in the APO product master manually to 20 (planning with
final assembly):
APO menu path: Master data → Product

Product: T-F2##
Choose Change.
You should also change the automatic planning in planning run indicator on the PP/DS tab back to automatic
planning immediately.
4-5-4 View the planned independent requirements for APO product T-F2## in location 1000 (Hamburg
production plant) in the APO product view.
4-5-5 Carry out planning in the product view to delete the surplus planned orders.
(C) SAP AG AP220 2-67

Verrechnung für prognosegesteuerte Produkte - Solutions
can be completed by the participants after the end of
the course)
(make-to-stock production)
1-1
1-1-1 R/3 Menu path: Logistics → Production → Master Data → Material
Master → Material → Display → Display Current
1-1-2 R/3 Menu path: Logistics → Production → Production Planning →

Demand Management → Planned Independent Requirements → Create
1-2 APO Menu path: Production Planning → Interactive Production Planning →

Product View
To trigger planning from the product view, choose the Product heuristic button.
1-3
1-3-1 R/3 Menu path: Logistics → Sales and Distribution → Sales → Order →
Create
1-3-2 APO Menu path: Production Planning → Interactive Production Planning

→ Product View
To trigger planning from the product view, choose the Product heuristic
button.
Was the sales order taken into account in some form in planning? Does the
sales order influence the planned independent requirements or the planned
orders?
The sales order has no influence on planning, but no settlement has been
made between the sales order and the planned independent requirements
either.
Solutions

(planning with final assembly)
(C) SAP AG AP220 2-68

2-1


Product View
2-3
Create

→ Product View

The sales order has consumed the planned independent requirement closest
to it in the past.
button.
Planned orders have been generated for the sales order and therefore the
sales order was taken into account in terms of planning in the requirements
strategy planning with final assembly.
(C) SAP AG AP220 2-69

2-4
order?
The planned independent requirement closest to the sales order in the past
has been consumed.
(C) SAP AG AP220 2-70

Solutions

can be completed by the participants after the end of
the course)
(subassembly planning)
3-1


Product View
3-3
Create

→ Product View
button.
Check whether the planned order from the T-F14## Personal Computer
contains the assembly T-B62## (Hard Disk) as a planned order.
Assembly group T-B62## is part of the planned order for the Personal
Computer T-F14##.

→ Product View
Does the dependent requirement influence the planned independent

requirements?
The dependent requirement has consumed the planned independent
requirement closest to it in the past.
(C) SAP AG AP220 2-71
button.
Was the dependent requirement taken into account in some form in

planning?
Procurement was triggered for the dependent requirement, therefore the
dependent requirement was taken into account during planning.
3-4
3-4-1 Which planned independent requirement was consumed with the dependent
requirement?
The planned independent requirement closest to the dependent requirement
in the past has been consumed.
(C) SAP AG AP220 2-72

Solutions

(planning without final assembly)
4-1
APO Menu path: Master Data → Product


Product View
Do the planned orders generated for the pump have a conversion indicator? Is it
possible to trigger the final assembly for material T-F2## already at this stage?
The planned orders for the finished product do not have a conversion indicator.
Final assembly from there is not currently possible.
Do the planned orders generated for the assembly have no conversion indicator
either like those generated for the finished product? Can assembly be completed at
this stage?
Assembly production can be triggered here.
4-3
Create

→ Product View

The sales order has reduced the planned independent requirement closest to
it in the past.
button.
(C) SAP AG AP220 2-73
A new planned order was generated for the sales order. The sales order is
therefore taken into account in planning.
Do the new planned orders generated for the pump have a conversion
indicator? Is it possible to trigger final assembly for material T-F2## at this
stage?
Final assembly is now possible.
4-4
order?
The planned independent requirement closest to the dependent requirement
in the past has been consumed.
4-4-2 Are 10 additional pumps produced after the arrival of the sales order or does the sales order reduce the
planned independent requirement (make-to-order planning) by 10 pieces?
The make-to-order planning was reduced after the arrival of the sales order (planned independent requirements).
4-4-3 Is the final assembly of the pumps carried out in make-to-order production or make-to-stock production?
The sales order can be seen in a sales order planning segment. Final assembly is therefore carried out in a make-
to-order production.
(C) SAP AG AP220 2-74

Planning
Contents:
l Simultaneous material and capacity requirements

planning planning in the production planning run
l Heuristics
l Steps in the production planning run (net requirements
calculation, lot-size calculation, procurement type, PPM
explosion, scheduling)
ã SAP AG 2001

Simultaneous Material Requirements and Capacity
Planning: Unit Objectives
l Explain and use simultaneous material and

capacity requirements planning in the production
planning run
ã SAP AG 2001

1 Course Overview

2 Products

3
ã SAP AG 2001

Planning: Business Scenario

l In the SAP System, the forecast (planned
independent requirements) as well as the sales
orders must be planned.
l At the same time, simultaneous material and
capacity requirements planning is to be performed
ã SAP AG 2001

Models and Planning Versions
Master Data for Non-R/3

Non-R/3
R/3
System
PP/DS
Master data in APO Simulation

Simulation model N
model Z01
Active model 000
Resources Resources
Locations Resources
PPM PPM
Products PPM
Planning
Planning version
version Z01
Z01
Transportation lane version-dependent
version-dependent master
master
data
data and
and transaction
transaction data
data
Active
Active planning
planning version
version 000
000 Planning
Planning version
version 11 Planning
Planning version
version N
N
version-dependent
master version-dependent
master version-dependent
master
data
data and
and transaction
transaction data
data data
data and
and transaction
transaction data
data data
data and
and transaction
transaction data
data
ã SAP AG 2001
n The Supply Chain Model (abbreviated as model) represents the entire supply chain network ranging
from suppliers to production and distribution sites, all the way to the customer. It contains locations,
transportation lanes, products, resources, and production process models. Thus, the model is the
basis for all planning functions in APO. It only contains master data.
n Master data from the R/3 System (or a non-R/3 System) is automatically assigned to the active APO
model (model 000) during the master data transfer to the APO System. The active model represents
the supply chain actually used in the enterprise. In this way, all master data transferred is
automatically available for operational planning in the APO model 000. You must assign master data
that you create manually in APO to a model.
n If you want to plan another supply chain (for example, a different distribution center) in the
simulation, you can create an inactive model in APO. If you want to use certain master data in both
the active and inactive model, or in the inactive model alone, you must assign this master data to the
inactive model. You can either use the Supply Chain Engineer (SCE) as the modeling tool in APO or
a manual assignment from within master data maintenance (from the R/3-APO interface, master data
is automatically assigned to the active model only).
n For simulation purposes, you can create several planning versions for each supply chain model,
however, only model 000 and planning version 000 are active. The planning version contains master
data and transaction data. In an inactive planning version, you can, for example, simulate increased
planned independent requirements and plan production based on an increased demand. You cannot
transfer the planning results from the inactive planning version to the active planning version. You
must repeat the planning in the active planning version.
n You can use version management to copy models and planning versions or create them manually.
They must be uniquely identifiable, which means two planning versions in different models must
have different names. The active planning version 000 only exists in model 000.

MRP Procedure
MRP procedure
MRP Consumption-based
Consumption-based
planning
planning
Reorder point Forecast-based Time-phased

MRP planning mat. plng
Based on consumption
ã SAP AG 2001
n A distinction is made between material requirements planning and consumption-based planning.

n In material requirements planning, the system compares the available stock plus planned receipts
with requirements in the future. If the available quantity is less than the requirements quantity at a
certain time, a procurement proposal is generated.
n In the consumption-based material requirements planning procedure, replenishment is triggered
based on consumption values. This procedure is especially simple and is primarily used for B items
and C items, products that are produced in high quantity but which have low value. The external
procurement of materials is often represented using consumption-based material requirements
planning procedures.
In reorder point planning, a reorder point is determined for a product. As soon as the available
stock goes below the reorder point, procurement is triggered. The reorder point must be
maintained manually in the product master (manual reorder point planning), a calculation of the
reorder point (automatic reorder point planning) is only supported in R/3.
Forecast-based planning uses the forecast module in R/3 and determines future forecast
requirements based on past consumption values. The requirements which occur in the future are
the basis for planning. Forecast-based planning is very similar to material requirements planning
except that it has a more limited scope of function. Forecast-based planning is fully supported in
R/3.
Time-phased materials planning uses the forecast module in R/3 and determines future forecast
requirements based on past consumption values. The requirements which occur in the future are
the basis for planning. In contrast to forecast-based planning, planning is not triggered with each
production planning run, but only at certain times periods. Such a period may be every other
Tuesday, for example, if the material is delivered every other Tuesday. Time-phased material
planning is fully supported in R/3.

Prerequisites for the Production Planning Run
APO
APO PP/DS
PP/DS Number range (optional)
Customizing:
Customizing: Global
Global Strategy profile
Settings
Settings Categories for PP/DS
BOM explosion
...
Master data and transaction

System
System requirements
requirements for
for data were converted using the
R/3
R/3 and
and APO
APO integration model and are
SAP R/3 available in model 000 and its
SD LO
SD LO
HR
HR
SAP APO active planning version 000.
CIF
ã SAP AG 2001
n In the APO delivery system, the following global settings are available in Customizing for PP/DS:
You can use number ranges to assign an internal number to orders created in APO. As soon as an
order reaches R/3 via the CIF interface and is created there, it is assigned an order number in R/3
based on the R/3 number range. The R/3 order number is then transferred back to APO directly so
that the order can be seen in APO with the R/3 order number. Orders are only assigned an APO
order number in APO when they are not transferred back to R/3 (for example, in simulated
planning versions) or when they have not yet been transferred back to R/3 (for example, if they are
transferred periodically and not directly).
You use strategy profiles to control detailed scheduling (for example, to find gaps when
scheduling backwards). You maintain strategy profiles for automatic planning (Multilevel ATP
field) for orders transferred from the R/3 System (R/3 Integration field).
Categories for PP/DS: You use these categories to display the description of the receipt and issue
elements in the reporting dialog boxes in Production Planning and Detailed Scheduling. Since
APO is preconfigured for R/3, you only have to enter categories for an OLTP system if it is not an
R/3 System.
You maintain the categories in Customizing for the Global Availability Check (Global ATP
Check) under General Setting -> Maintain Categories.
BOM explosion (can also be defined for each product in the product master): You specify whether
the production process model (PPM) is to be exploded during planning or whether the BOM and
the routing are to be exploded in the R/3 System. To ensure better system performance, explode
the PPM in APO.
n Core interface to APO in R/3: You have used an integration model in the core interface to transfer
master data and transaction data to APO. You must transfer the master data to be planned in APO as
well as the master data of all your components. The data is transferred in your active model 000 and
your active planning version 000.

Automatic Planning (Immediately)
Sales order, Multi-level ATP check: If a product is not

planned order available, suitable receipt elements are
A Automatic planning immediately generated automatically and immediately;
the resource capacity is taken into
Dependent requirement, plnd account. Result: feasible availability data
order/purchase requisition
for the product and its components.
B C D Automatic planning immediately
Product A
Immediate planning of the product for
PP/DS
planning-relevant changes -
Planning when changing assemblies and components of the
Automatic planning immediately product can also be planned with
Automatic planning immediately (only
Automatic planning in planning run
with exact lot-sizing procedure or fixed
Manual planning with availability check lot size)
Manual planning without availability check
ã SAP AG 2001
n You can specify that the system is to automatically plan products in PP/DS when you change data
relevant for planning (for example, the requirements or stock situation or the production process
model was changed). There are two types of automatic planning (settings are made in the product
master):
Automatic planning immediately: If you set this indicator for a product, the system generates a
planning file entry for this product for each change made that is relevant to planning (for example,
a new sales order). At the same time (immediately) a multi-level ATP check is performed for the
product and for the assembly/components for which automatic planning immediately is defined. If
a product is not available, suitable receipt elements are generated automatically and resource
capacity is taken into account. This results in feasible availability data for the product and its
components. Note: For the finished product for which, for example, a new sales order was created,
internal background planning is started immediately for the product, taking the heuristics from the
product master into account (for example, the optimization procedure). Assemblies and
components for which automatic planning directly has been defined and that get dependent
requirements from finished products, are only planned using exact or fixed lot sizes (based on the
settings on the Lot size tab in the product master), and the heuristics from the product master are
not evaluated. Heuristics in the product master are only evaluated in automatic planning
immediately when automatic planning is not triggered based on dependent requirements, which
come from the planning of a superior assembly, but as a result of other changes relevant for
planning, such as new requirements from R/3 or changes to the master data for the
assembly/component.
Use: For critical products for which production is triggered directly from the ATP check in the
sales order when they are not available and at the same time assemblies and components are also
partially procured (multi-level ATP check). Here the focus for the assemblies or components is
timely coverage only with exact or fixed lot sizes (minimum, maximum and rounding values are
also taken into account) instead of quantity optimizing of the assemblies or components.

Automatic Planning (in the Planning Run)
Sales order,
planned order If a product is not available, suitable
receipt elements are generated in the
A Automatic planning in planning run next planning run; the resource capacity
is taken into account. Result: feasible
Dependent requirement, plnd availability data for the product and its
order/purchase requisition components.
B C D Automatic planning in planning run
Product A
The product is planned in the next
PP/DS production planning run using the
Planning when changing
heuristic (for example, the optimizing
lot-sizing procedure) defined for each
Automatic planning immediately product in the product master
Automatic planning in planning run
Manual planning with availability check
Manual planning without availability check
ã SAP AG 2001
n You can specify that the system is to automatically plan products in PP/DS when you change data
relevant for planning (for example, the requirements or stock situation or the production process
model was changed). There are two types of automatic planning (settings are made in the product
master):
Automatic planning in the planning run: If you set this indicator for a product, the system
generates a planning file entry for this product for each change made that is relevant to planning.
The product is then planned in the next production planning run using the heuristic defined for the
product in the product master (such as the optimizing procedure or the standard lot heuristic). If
you have not defined any heuristics in the product master, the default heuristic defined under
Global Settings in Customizing is used.
Use: If you do not want to trigger production directly from the ATP check (for example, for less
critical products or to plan a number of products (mass planning)).
Advantage: You can plan when and how often the product is to be planned in the planning run.
You can improve system performance by executing the planning runs when your system is not
especially overloaded.
n Note: The production planning run is not only used in automatic planning in the planning run: you
can also use it to plan products for which manual planning was defined or to use heuristics on
products for which automatic planning immediately was defined. In this case, the products must be
selected in the production planning run.
Prerequisite: You can use the production planning run to plan products in general (if your user has
enough authorization) for which the procurement type (product master) is not external procurement
planning, if the products are within the propagation range, are assigned to a model, and are not
excluded from planning via the customer exit (BADI) src_exit.

Manual Planning
(With and Without Availability Check)
Sales order,
planned order
A Automatic planning
Dependent requirement, plnd - In the ATP check, the system

order/purchase requisition
B C D searches for components according
Manual planning to a receipt element (manual
planning with availability check): If
none is available, you must create
an order manually to cover
Product A requirements. Alerts are generated
when there are product shortages.
PP/DS
- In the ATP check, the system does
Planning when changing
not search for components
Automatic planning immediately according to receipt element
Automatic planning in planning run (manual planning without availability
check): The product is always
Manual planning with availability check considered available. Alerts are
Manual planning without availability check generated when there are product
shortages.
ã SAP AG 2001
n You can specify that you must plan products in PP/DS manually if data that is relevant for planning
changes (via manual creation of an order or via interactive planning in the product view). There are
two types of manual planning (settings are made in the product master):
Manual planning with availability check: If you set this indicator for a product (usually a
component), the system searches for the component by a suitable, existing receipt element during
the ATP check. If none is available, the superior order is not created before the dependent
requirement of the component is covered by a receipt (propagation). You may have to create an
order for the component manually to cover the requirements and then be able to create the superior
order on the desired date. Alerts are generated when there are product shortages.
If you set this indicator for a product, the system does not generate a planning file entry for this
product for each change made that is relevant to planning.
Use: If you want to use the function described above in a specific scenario. This procedure is not
intended for mass applications.
Manual planning without availability check: If you set this indicator for a product (usually a
component), the system does not search for the component by a suitable, existing receipt element
during the ATP check. This allows the order for the finished product to also be created if the
component availability is not given. The product is always considered available. Alerts are
generated when there are product shortages.
If you set this indicator for a product, the system does not generate a planning file entry for this
product for each change made that is relevant to planning.
Use: If you want to use the function described above in a specific scenario. This procedure is not
intended for mass applications.
(C) SAP AG AP220 3-10

Executing the Production Planning Run
A
Product Interactive individual planning - online
(for a product and its components)
Selection fields
Production planning run - online (total planning)
Selection fields
Production planning run - background processing (total planning)
ã SAP AG 2001
n You can execute the production planning run in two ways: either using individual planning for an
individual product or total planning for certain selected data.
n Total planning can be executed as follows:
Online: the production planning run is executed immediately. This type of total planning is only to
be performed for smaller jobs or tests with small amounts of data.
The time for the execution of a report is limited so that time consuming jobs do not influence the
response time of the system in the interactive mode. If a report runs longer than five minutes in the
interactive mode, the system terminates it automatically. It is therefore a good idea to use
background processing for more extensive planning jobs.
Background job: Here you can use variants that contain settings for mass planning. This function
allows you to start the job immediately or determine that it is to be started at a later time so that the
performance of the system is not influenced at times when it is overloaded.
(C) SAP AG AP220 3-11

Interactive Individual Planning
Only in the product view, product planning

table, detailed scheduling planning board
Process control
Finished product Product heuristic

Variable heuristic
(SAP_MRP_002)
Assembly 1 Assembly 2 Perform
planning
(multi-level)
Component 1 Component 2
top-down
Heuristics called from the planning
Optional
product masters
Process
planning results
- Planning of a BOM structure
- Changes can be made manually at every level
Process control: Product heuristic button calls lot-sizing procedure/heuristics from

the individual product masters, the Variable heuristic button allows you to also
interactively
ã SAP AG 2001 use heuristics that were not defined in the product masters.
n In interactive planning you can trigger planning for an individual product as well as for its
components. Interactive planning can be triggered in the product view, product planning table, and in
the detailed scheduling planning board. In these transactions, you can use the following process
controls to perform interactive planning: If you choose the Product heuristic button, the products
(finished product, assembly and components) are planned with the lot-sizing procedure/heuristics
that you maintained in your product masters. If you want to improve the planning situation
interactively by using other heuristics for certain planning problems without changing the entries in
the product master, you can use the Variable heuristic button: If you do this, a dialog box appears in
which you can choose from different heuristics that you can use to solve the planning problem.
n Process control for the Variable heuristic button: You can use the heuristic profile (Customizing for
Production Planning and Detailed Scheduling) to specify which heuristics can be selected in the
interactive planning menu when you choose the Variable heuristic button. The corresponding
heuristic profile then appears in the overall profile for each planning menu. SAP delivers standard
heuristic profiles for the three different planning menus. You can use one of these default heuristic
profiles or define your own combination for selection in the interactive planning menu via the
Variable heuristic button.
SAP001 (standard heuristic profile for the detailed scheduling planning board): Contains the
detailed planning heuristics, which focus on resources and operations. This heuristic profile is
predefined in the overall profile for the detailed scheduling planning board.
SAP002 (standard heuristic profile for the product view): Contains all production planning
heuristics. The planning focus of these heuristics is on the products. This heuristic profile is
predefined in the overall profile for the order views (for example, the product view).
SAPREM (standard heuristic profile for the product view): To be explained later.
(C) SAP AG AP220 3-12

Production Planning Run
Production Sales orders,

planning run planned ind. reqmts
Planned Purchase Sched. agree.

order requisition del. schedule
Dependent
requirements
In-house External procurement

production
ã SAP AG 2001
n Use: You use the production planning run to perform production planning and detailed scheduling
for a very large number of objects.
n You use the production planning run in change planning to plan products for which you have defined
Automatic planning in the planning run in the product master. You can also use the production
planning run to plan products for which Manual planning has been defined. Additionally, you can
use a heuristic to reschedule products that are to be planned automatically and immediately (for
example, if you first plan automatically and immediately to perform an ATP check and then use a
heuristic to reschedule the products for periodic lot-sizing).
(C) SAP AG AP220 3-13

Scope of the Planning Run
Planning types:
Planning all materials of a plant

Plant
Planning all materials for which
MRP-relevant changes have been made
(net change planning)
Planned receipts
Planning/production horizon:
Unlimited (999 days) or Time

Planning
horizon/
Planning in the planning horizon production
Requirements horizon
ã SAP AG 2001
n In regenerative planning, all materials for a plant are planned. It is best used in a first-time planning
run as well as in a running plant if data consistency cannot be guaranteed due to technical errors.
n In a working plant, it is usually a good idea (especially if you have several materials) to just execute
the production planning run for those materials for which MRP-relevant data has been changed, such
as stock issues, sales orders, or changes to the BOM structure. Change planning (net change
planning) allows you to execute the planning run in short time periods, which in turn allows you to
always work with current planning results.
n You specify the planning run type on the initial screen of the production planning run. Here you can
set the Mark for the planning file entry indicator. This limits planning to the products for which
changes were made that were relevant for planning (change planning run). If you do not set this
indicator, all products selected will be planned.
n Planning horizon: In planning version management, you can enter the number of days (in the
future) starting from the current date on which product receipts and product requirements are to be
planned using production planning and detailed scheduling.
Dependencies: You can also define a production horizon in the product master. The production
horizon entered in the product master has priority over the parameters defined in the planning
version.
(C) SAP AG AP220 3-14

Control Parameters for the Production Planning
Run (1)
Variants
Global settings
Planning version 000

Time profile SAP001 From ... to
Propagation range SAPALL
Simulation version
Processing steps
Step Function/heuristic Profiles Obj. Select. crit.
01
02
...
ã SAP AG 2001
n You use the following profile to determine the scope of the production planning run:
Planning version: Here you define in which planning version the production planning run is to be
executed.
You use the time profile to specify for which time period the planning is to be executed. Only
orders and operations that are within this planning period can be rescheduled.
Propagation range: You use the propagation range to specify which resources and products can
be changed. You can only reschedule resources and products that are within the propagation range.
If the component planning is for resources outside of the propagation range, the component order
is not created. The assembly orders within the propagation range, however, are still created.
Exception: If Automatic planning immediately is set in the product master for the assembly and
component, the assembly order in the example above is not created if the component order cannot
be created since the component situation is always considered for automatic planning immediately.
Planning run in the simulation mode: You can perform a production planning run and save its
results in a simulation version. You can then decide at a later time whether or not you want to use
the simulation in the operational planning version.
n There are two different parts in the production planning run: Functions (for detailed scheduling in the
graphical control station) and heuristics (for material and capacity requirements planning in
production planning). You use the functions when scheduling and optimizing. You cannot change
functions. Heuristics, on the other hand, can be maintained in Customizing for Production Planning
and Detailed Scheduling.
(C) SAP AG AP220 3-15

Control Parameters for the Production Planning
Run (2)
Variante
Global settings
0 Objects from the last step
Planning version 1 Resources
2 Orders
Time profile Operations
3
Propagation range 4 Products
5 Objects from customer exit CDPS1
Simulation version 6 Automotive line networks (iPPE)
Processing steps
Step Function/heuristic Profiles Obj. Select. crit.
01 Product heuristic 0001 4
02
...
Selection of products
Product * to *
Location 1000 to
Planner 01 to
Marked for planning
ã SAP AG 2001
n In the production planning run, you can define several sequential processing steps for which the
system executes different heuristics/functions for the defined objects. You can define which objects
are to be processed with which heuristics or functions.
Objects include: resources, orders, operations, products, line networks (iPPE Automotive BOM).
The objects must be compatible with the selected heuristic. For example, products must be the
planning focus of all production planning heuristics. You use different heuristics/functions
depending on which type of problem you are working on. Functions, such as optimization or
scheduling, can also be selected and executed in the production planning run. You can execute
several heuristics or functions sequentially.
n In the production planning run, you can also execute several identical heuristics one after the other, if
they are each for different products. This enables you to consider the sequence of the products when
planning, especially in finite planning (you can specify in Customizing for lot-size heuristics which
requirements per product are to be planned first in finite planning).
n You specify the following for each processing step:
The heuristic/function to be executed in this step
The strategy profile to be used for the heuristic/function (for example, a strategy profile which
uses the strategy "find gaps backwards" when scheduling planned orders). If you want to use the
optimization function, you must enter an optimization profile.
The objects (for example, 4 = products) on which the heuristics/functions are to be executed.
You can also limit planning to further selections.
n If you set the Marked for planning file entry indicator on the initial screen for the production
planning run, you can limit planning to products to which planning-relevant changes have been made
(change planning run). If you do not set this indicator, all products selected will be planned.
(C) SAP AG AP220 3-16

Planning Files and the Production Planning Run (1)
Planning
Planning file
file
MRP-relevant
MRP-relevant changes
changes to
to
master gf ile
master data
data p lannin
S et
entry
Read
Material
pro Upd
Reset
du ated
cti
on
pla
n
Planning run
ã SAP AG 2001
n All MRP-related products are contained in the planning file.

n If the production planning run is started with the "net change planning" mode, only those
products are planned for which an MRP-relevant change was made. MRP-relevant changes are
indicated in the planning file. These can be, for example, changes to the procurement type in the
product master or changes to the operation times in the PPM (which can be transferred from the R/3
master data in the change transfer via the R/3-APO interface), as well as newly created sales orders,
dependent requirements, changes to stock.
n The planning file entry contains such information as:
- The low-level code of the product
- Planning file entry indicators ("blank" = No planning, 1 = Change planning, 2= Regenerative
planning, 3 = New explosion of the planning data, 4 = New explosion and regenerative planning).
n The planning file entries are automatically set by the business application (for example, changes to
the product master) but can also be set manually in the planning file table. A few actions do not
trigger the automatic writing of a planning file entry at this time.
n You can use the Display Planning File Entries function (choose Production Planning -> Reporting
in the user menu) to analyse the content of the planning file (/sapapo/pegkey table). You do not need
to generate and activate planning files in APO as you do in R/3.
(C) SAP AG AP220 3-17

Planning Files and the Production Planning Run (2)
Planning horizon/production horizon
New reqmt Changed reqmt Time
Today Changes
Planning Product Plant ... Planning

file indicator number NETCH
4710 0001 x
4711 0002 -
4712 0001 x
4713 0003 -
. .
. .
Regenerative planning: planning 4710 to 4713

Planning run:
Net change planning: planning 4710 and 4712
Material Plant Planning

number file entry
4710 0001 -
4711 0002 -
4712 0001 -
4713 0003 -
ã SAP AG 2001
n During the planning run, the system checks each entry for a product in the planning file:
- In regenerative planning, it plans all materials without taking the indicators into account.
- In net change planning, it only plans those materials for which the Planning file entry indicator is
set.
n When the planning run has been executed, the entry in the planning file is automatically deleted.
(C) SAP AG AP220 3-18

Planning Sequence: Low-Level Code Procedure
Finished product 1 Finished product 2

BOMs
BOMs
Assembly 1 Component 2 Assembly 2 Component 4
Component 1 Component 2 Component 2 Component 3
Low-level
Low-level code
code 000
000 Finished
Finished product
product 11 Finished
Finished product
product 22
Low-level
Low-level code
code 001
001 Assembly
Assembly 11 Assembly
Assembly 22 Component
Component 44
Low-level
Low-level code
code 002
002 Component
Component 33
The lowest level that a product

Low-level = appears in any BOM
code
ã SAP AG 2001
n The low-level code is the lowest level that a product appears in any BOM. The low-level code of a
product is always larger than the low-level code of all of its predecessors in all BOMs. Die
Dispostufe 0 erhalten alle Produkte auf der obersten Ebene einer Stückliste oder Produkte, welche
keiner Stückliste zugeordnet sind. Dispositionsstufen werden lokationsübergreifend vergeben.
n The low-level code controls the planning sequence: First products with low-level code 0 are planned,
then with low-level code 1, and so on. This allows all products to be planned in the correct sequence
in one run.
n You can display the low-level code of a product in the planning file for each planning version in the
PP/DS menu (Reporting -> Display Planning File Entries).
n At this time, low-level codes are not automatically recalculated when you change master data. You
can automatically trigger a new calculation, however, by starting a heuristic for process control (for
example, heuristic SAP_MRP_001) if recalculation of low-level codes is activated in Customizing
for this heuristic.
You can also trigger a new calculation by starting heuristic SAP_PP_020 (stage numbering).
n It has been ensured that the production planning run is terminated for products with recursive BOMs.
(C) SAP AG AP220 3-19

Heuristics: Definition
A heuristic is a simple or complex planning function which you can use to

plan selected objects.
Definition in Customizing:
You can define your own
Heuristics
Heuristics heuristics
Algorithm (function module): Other controlling parameters

Different standard algorithms are
available to solve certain planning
problems
Heuristics offer a wide range of planning functions and

can be used both in background planning as well as in interactive planning
ã SAP AG 2001
n Defining your own heuristics: You can use the standard SAP algorithms to define your own
heuristics. You do this in Customizing for Production Planning and Detailed Scheduling under
Heuristics -> Maintain heuristics, by entering an SAP standard algorithm and making the required
settings. You can also use your own algorithms to create heuristics if you have integrated these
algorithms in the APO System.
n Furthermore, you can use table /sapapo/heurfunc in the SAP development environment to realize
new algorithms by including a new function module in this table, a new screen to maintain settings,
as well as a control indicator (when and where this algorithm may be used).
(C) SAP AG AP220 3-20

Standard SAP Heuristics
Heuristics can be used for the Heuristics can be started in the following
following planning objects: transactions:
• Resources • Production planning run (online, background)
• Orders • Product view
• Operations • Detailed scheduling planning board
• Products • Product planning table
Standard
Standard heuristics
heuristics
Heuristics Heuristics
Heuristics for
for detailed
detailed scheduling
scheduling
Heuristics for
for
production (graphical
(graphical control
control station)
station)
production planning
planning
Mainly lot-sizing procedures, Used for scheduling, planning focus is
planning focus is on the products on resources and operations
(for example, planning products
and generating orders based on
lot-sizing procedures)
ã SAP AG 2001
n You use heuristics to solve planning problems (using certain algorithms) for certain objects
(depending on the planning focus, either for products, operations, resources, or line networks
(automotive BOM/production line)). You can use your own heuristics or those defined by SAP.
n SAP standard heuristics are available in the following areas:
Production planning: This heuristic is mainly for lot-sizing procedures whose planning focus is
on the products. Period lot-sizing and quantity optimizing are such heuristics. The heuristics
product planning and production planning run after low-level codes are especially important.
These heuristics execute heuristics defined in the product master for each product.
- An exception is repetitive manufacturing: These heuristics generate planned orders for
requirements and take resource capacity into account for all periods. The planning focus is on
resources, line networks, and products.
Detailed scheduling: These heuristics are for scheduling; their planning focus is on resources and
operations. Examples of such heuristics are reduce leadtime and dissolve backlog.
Model mix planning is only available for iPPE (automotive BOMS).
(C) SAP AG AP220 3-21

Overview of Heuristics in Production Planning
To be entered in Heuristics
Heuristics for
for - Planning run
the product master production
production planning
planning - Interactive planning
Product heuristics Product planning runs Service heuristics

(lot-sizing procedure) (processing control) (service functions)
functions)
Static, Optimizing SAP_MRP_001: SAP_PP_008: SAP_PP_012:

periodic procedure Product planning Rescheduling: Delete fixed
run for product levels Bottom-up for Konti-IO pegging edges
SAP_PP_002: SAP_PP_005:
Planning of Part period SAP_MRP_002: SAP_PP_009: SAP_PP_013:
standard lots balancing Product planning run Rescheduling: Change order
Bottom up priorities
Planning of material Least unit cost proc.: SAP_PP_009:
shortage quantities External procurement Rescheduling:
Top down
SAP_PP_004:
SAP_PP_014:
Weekly lots in 4
Groff procedure
week horizon
SAP_PP_007:
Reorder point
planning
SAP_PP_C001:
Planning standard
lots for conti.-IO Additionally: Exception is REM heuristics
ã SAP AG 2001
(C) SAP AG AP220 3-22

Production Planning Run Heuristics (Sequential
Control)
Heuristics
Heuristics for
for - Planning run
production
production planning
planning - interactive planning

functions)
SAP_MRP_001:
Product planning Execute heuristics from product
run for product levels master (SEQUENTIAL CONTROL) -
Only difference is for products
SAP_MRP_002:
planned with Automatic planning
Product heuristic immediately function
ã SAP AG 2001
n Use: The production planning run heuristics are only for sequential control and execute heuristics
defined for each product in the product master. If you have not defined a heuristic for a product in
the product master, the APO System uses the heuristic predefined as the product heuristic in
Customizing for Productions Planning and Detailed Scheduling (choose Global Settings ->
Maintain Global Parameters and Default Values).
n Process: Enter the heuristic for process control (SAP_MRP_001 or SAP_MRP_002) on the initial
screen for the production planning run. This allows the production planning run to be triggered after
the low-level code procedure, which takes the lot-size heuristics and lot-size settings in the product
master into account.
(C) SAP AG AP220 3-23

Automatische Planung sofort (mehrstufig)
Bedarfstermin
Automatische Planung sofort
Planauftrag A
10 20 30
Kundenauftrag
Planauftrag Planauftrag C Sekundärbedarf
Falls „automatische Planung 10 20 30
A sofort“: sofortige Planung
Planauftrag A
Sekundärbedarf 10 20 30
Planauftrag/Bestellanford.
B C Falls „automatische Planung
Planauftrag C
sofort“: sofortige Planung 10 20 30 Alert
Automatische Planung sofort
heute
Szenario: Produkt A hat Dispostufe 0, Produkt C hat Dispostufe 2 (da es in einer anderen
Stückliste in einer tieferen Dispostufe vorliegt)
Bei automatischer Planung sofort werden die Bedarfe sofort geplant
ã SAP AG 2001
n Wenn sowohl das Enderzeugnis als auch die Baugruppe auf „automatische Planung sofort“
eingestellt ist, werden die Bedarfe direkt geplant. Falls der Baugruppenauftrag in die Vergangenheit
fälllt, wird eine mehrstufige Vorwärtsterminierung durchgeführt.
(C) SAP AG AP220 3-24

Sequential Control SAP_MRP_001
Reqmts date
Planned order A
10 20 30
Sales order,
planned order Plnd order C Dependent
10 20 30 requirements
All products of low-level code 0
A are planned first
Switch to forward
Dependent requirement, 10 20 30 scheduling
plnd order/purchase req.
B C Is planned first, if it is its turn
Alert
according to low-level code
Today
Scenario: Product A has low-level code 0, product C has low-level code 2 (since it is in a
different BOM in a lower low-level code)
SAP_MRP_001: Production planning run based on low-level codes: Therefore, after product A (low-level
code 0), product C (low-level code 2) is not planned until other products have been planned
Result: Since the planned order for product C is in the past, the system switches to forward scheduling but
can no longer move the planned order for product A which was scheduled a while ago before: Result:
Alerts are generally below - Advantage: High performing procedure
ã SAP AG 2001
n SAP_MRP_001: Production planning run based on low-level codes: This heuristic plans all
products in the sequence of the low-level codes: products with lower low-level codes (for example,
low-level code 0) are planned first, products with higher low-level codes are planned later.
Example: If a sales order is received for finished product A, a planned order is generated for product
A (if sufficient stock is not available). As soon as the planned order is created for A, a dependent
requirement is generated for component C. Component C, however, is not planned further at the
same time, but rather when it is its turn in the sorting of the low-level code in the planning run. If
product C is planned later, it may be that the dependent requirement for component C cannot be
covered since sufficient stock is not available, but no planned orders can be created due to capacity
reasons. In this case, an alert is generated for component C (shortage). Propagation back to product
A is not possible, however, and the planned order for product A cannot be moved to the future in the
planning run. This can result in exception messages for this procedure especially at the component
level.
Advantage: The procedure is very fast and can be used for mass applications. It is also a good idea
to use the procedure if only the capacity for final assembly is planned finitely, but the
assemblies/component levels are planned infinitely, or if the production planning run is first to create
planning suggestions that are later to be moved again with the optimizer.
Note: The ATP check for manually planned components with check is not performed.
(C) SAP AG AP220 3-25

Sequential Control SAP_MRP_002
Reqmts date
Planned order A
10 20 30
Planned order C Dependent
10 20 30 requirements
Sales order,
planned order Planned order A
A Products of low-level code 0 10 20 30
are planned first
Dependent requirement, Planned order C
planned order/purchase 10 20 30 Alert
requisition
B C Immediate planning if
"automatic planning immediately"
Today
Scenario: Product A has low-level code 0, product C has low-level code 2 (since it is in a different BOM
in a lower low-level code)
SAP_MRP_002: Production planning run based on low-level codes: Therefore, after product A (low-level
code 0), product C (low-level code 2) is not planned until other products have been planned
Result: Since the planned order for product C is in the past, the system switches to forward scheduling.
Difference between SAP_MRP_002 and SAP_MRP_001: Production planning run according to low-level
codes makes multi-level planning dependent on settings for components: delays can be moved up to
header level for certain products (automatic planning immediately - Alerts are above)
ã SAP AG 2001
n SAP_MRP_002: Product heuristic: This heuristic plans all products in the sequence of the low-
level codes; products with lower low-level codes (for example, low-level code 0) are planned first,
products with higher low-level codes are planned later.
Example: If a sales order is received for finished product A, a planned order is generated for product
A (if sufficient stock is not available). As soon as the planned order is created for A, a dependent
requirement is generated for component C.
It is only different from heuristic SAP_MRP_001 for components for which automatic planning
immediately was defined. For components with automatic planning immediately, the process is the
same as for heuristic SAP_MRP_001: Components for which automatic planning in the planning
run was defined are planned directly, not with the heuristic defined in the product master, but only
via the fixed lot size (min-max values are considered). This allows you to directly check whether
enough stock is available for the component and, if not, whether there is capacity for a new planned
order to be scheduled up to the time of the dependent requirement. If the planned order cannot be
created until after the dependent requirement, backward propagation is performed upward: The
planned order for finished product A is moved. A new source of supply determination is also
triggered automatically for product A (if several PPMs are valid for product A). The move can be
multi-level if Automatic planning immediately has been defined across several stages. If the
requirement cannot be covered, alerts are generated at the finished product level. This can result in
exception messages for this procedure especially at the component level.
Components for which automatic planning in the planning run has been defined are planned in the
same way as for heuristic SAP_MRP_001. When it is later product C's turn in planning according to
the low-level code, it is planned again. The heuristic in the product master is now used (for example,
optimum procedure).
Components for which automatic and immediate planning has been defined are planned with a
simple lot-size heuristic. Planning with this heuristic is performed according to a multi-stage logic,
which means if a component is not available on time, the order at the highest level is rescheduled.
Planning file entries are generated for components for which it was specified that they are to be
planned automatically in the planning run. The product heuristic can be executed in interactive
(C) SAP AG AP220 3-26

planning and in the planning run. Note: The ATP check is performed for components for which
manual planning with ATP check has been specified.
(C) SAP AG AP220 3-27

Heuristikpakete
Produkt A Produkt B
PP/DS PP/DS
Heuristik Heuristik
Teil von Paket Linie1 Teil von Paket Linie1
Heuristik Heuristik
Zugänge
Bedarfe Zeit
Produkt A Produkt B Produkt A Produkt B Produkt B
Szenario: Mehrere Produkte werden in einem bestimmten Zeitraum auf der gleichen
Ressource produziert. Bei Planung ausschließlich nach dem Dispostufenverfahren
würde zuerst z. B. Produkt A entlang der gesamten Zeitachse finit auf den Ressourcen
eingelastet werden. Dadurch könnte für Produkt B keine freie Kapazität mehr vorhanden
sein.
Lösung: Bei Verwendung von Heuristikpaketen werden die einzelnen Lose (sortiert nach
Zeit) eingeplant, d. h. erst ein Auftrag für Produkt A, dann B, dann A etc.
ã SAP AG 2001
n Konzept der Heuristikpakete (Produktstamm, Sicht PP/DS): Gruppiert verschiedene Produkte, die
mit der gleichen Heuristik geplant werden sollen.
Häufig sollen Produkte nicht unabhängig voneinander geplant werden. Mit dem Heuristikpaket
können Sie definieren, welche Produkte mit welcher Heuristik zusammen geplant werden sollen.
Anwendungsbeispiele:
alle Produkte, welche auf der gleichen Fertigungslinie hergestellt werden
alle Produkte, die in einem Produktionsprozess zusammen gefertigt werden (Hauptprodukt und
Kuppelprodukt)
alle Produkte, die vom gleichen Lieferanten beschafft werden
n Voraussetzung: Tragen Sie bei den verschiedenen Produkten, die zusammen geplant werden sollen,
jeweils den selben Heuristikpaketnamen ein (Produktstamm, Sicht PP/DS, Feld Teil von Paket).
Heuristikpakete werden direkt im Produktstamm (Sicht PP/DS) definiert.
(C) SAP AG AP220 3-28

Service Heuristics
(Service Functions)
Heuristics
Heuristics for
for - Planning run
production
production planning
planning - interactive planning -

(lot-sizing procedure) (sequential control) (service functions)
functions)
SAP_PP_008:
SAP_PP_012:
Rescheduling:
Deleting fixed pegging
Bottom up conti-I/O
Rescheduling: Changing order
SAP_PP_009:
Rescheduling:
Top down
ã SAP AG 2001
n Use: Service heuristics are used to execute certain service functions. They can be called interactively
or in the planning run:
n SAP_PP_010: Reschedule top down (moving receipts to requirements): You use this heuristic to
reschedule receipts so that they can, for example, cover later requirements. Moving dependent
requirements for assemblies/components leads to related planned orders at the finished product level
also being moved (if this is not possible, alerts are generated). Note: This heuristic only considers
dependent requirements from stock transfer and in-house production. Planned independent
requirements and sales order are not taken into account.
Application: At the end of the PP/DS production horizon, SNP planned orders can be converted to
PP/DS planned orders using a report to be started periodically. In SNP, planned orders and related
dependent requirements are generated to the day.
n SAP_PP_009: Reschedule bottom up (moving requirements to receipts): You use this heuristic
to reschedule dependent requirements from assemblies/components so that they can be covered by
receipts (if the dependent requirements are too early). Moving dependent requirements for
assemblies/components leads to related planned orders at the finished product level also being
moved (if this is not possible, alerts are generated). Note: This heuristic only considers dependent
requirements from stock transfer and in-house production. Planned independent requirements and
sales order are not taken into account.
Application example: At the end of the PP/DS production horizon, SNP planned orders can be
converted to PP/DS planned orders using a report to be started periodically. In SNP, planned orders
and related dependent requirements are generated to the day. If the assembly order moves to this
production horizon, conversion takes place.
(C) SAP AG AP220 3-29

Service Heuristics
(Service Functions)
Heuristics
Heuristics for
for - Planning run
production
production planning

functions)
SAP_PP_008:
SAP_PP_012:
Rescheduling:
Bottom up conti-I/O
Rescheduling: Changing order
SAP_PP_009:
Rescheduling:
Top down
ã SAP AG 2001
n SAP_PP_012: Delete fixed pegging: You can use this service heuristic to delete fixed pegging
relationships.
n SAP_PP_013: Change order priorities: If you enter priorities in sales order, they are inherited by
the planned order or production order. Problem: You have a planned order or production order that
has a dynamic pegging relationship to a sales order in the future, with priority 4. If a new sales order
is created between them, a new dynamic pegging relationship is formed. This new sales order has
priority 2. When the pegging relationship is formed again, the priority is not changed in the planned
order or production order. For such a situation, you can use service heuristic SAP_PP_013, which
adjusts the priorities in the planned order or production orders to the priorities of the linked sales
orders.
(C) SAP AG AP220 3-30

Concept: Pegging Relationships
Sales order/
dependent reqmts
50 50 50
Material A 50
30 20
Pegging edge
50 80 20
Planned order
l Pegging network:
n Assignment starting from receipts for requirements
n Changes must be propagated to all dependent orders, search for order
quantities that are not assigned
l Dynamic pegging (with pegging strategy) and fixed pegging
ã SAP AG 2001
n Pegging is a procedure that establishes a relationship between the receipt and issue elements of a
product in a location. The system uses pegging to assign relevant receipt elements to requirements.
n Pegging strategy: The pegging strategy specifies how requirements are to be covered by receipts.
Example: 1 October: Receipt of 100 pcs / 10 October: Receipt of 50 pcs / 20 October: Requirement
of 100 pcs
When using strategy 01 (First In First Out), the receipt on 1 October is used to cover the
requirement on 20 October. The receipt on 10 October remains available. Advantage of this
strategy: Easy to understand.
When using strategy 00 (Surplus as early as possible and shortage as late as possible) the receipt
that is closest to the requirement on the time axis is used to cover this requirement. In this
example, the receipt on 10 October is not enough to cover the requirement. The requirement is
assigned another 50 units from 1 October. Advantage of this strategy: An excess is made available
as soon as possible.
n There are two different types of pegging relationships: fixed and dynamic pegging. Fixed pegging
enables you to fix a pegging relationship, that is, the pegging relationship will no longer be changed
automatically by the system during planning. You are able to fix a particular quantity of the product
receipt to a specific requirement. To do this, double-click the receipt/requirement element in the
structure tree and choose the pegging structure. Choose fix to convert the dynamic pegging
relationship to a fixed pegging relationship. To change a fixed pegging relationship back to a
dynamic pegging relationship, you can choose Unfix at any time. You can also define that fixed
pegging relationships are to be generated for each product in the product master (Demand tab).
n The dynamic and fixed pegging relationships can be considered or ignored in planning. The various
strategies can be defined in the strategy profile.
(C) SAP AG AP220 3-31

Pegging across the Whole Supply Chain
Sales order
10 20 10 40 60 (-10)
10 20 10 40 50
30 100
Planned order
Shortage
Dependent reqmt
30 100
20 Surplus
30 50 30
Planned order 50 50 50 (+20)
Dependent reqmt
50 50 50
50 30 20 50
80 80 (+10)
Purchase
requisition
ã SAP AG 2001
n The system creates a pegging network of orders linked to one another that represents the
relationships between the receipt and issue elements of a BOM structure.
Prerequisite: Pegging relationships are created if the following requirements are met: same product,
location, account assignment (make-to-stock and make-to-order production), planning version
(active planning version) or, for simulation purposes as well as in characteristic-based planning, the
same compatible characteristics.
n Requirement and receipt elements are assigned according to the time of availability and requirement.
Consequently, dynamic pegging relationships change if there is a change in quantity or in
requirement dates. Pegging thus enables a multi-level transfer of changes.
n Pegging relationships have the following effects:
If an order changes, these changes must be forwarded to all dependent orders. The system uses the
pegging relationships to determine which orders are dependent.
If an existing requirement increases, or a new requirement is created, existing receipt elements
with quantities that have not yet been assigned to specific issue elements (requirements) can be
used. Pegging, thereby, influences the net requirements calculation.
n The pegging structure for an order is a graphic evaluation that is ordered according to the BOM
structure of all related products and describes the relationships between the receipt elements and the
issue elements. It gives an overview of the orders that are required to produce a finished product or
assembly for a certain requirement. Since the dependent requirements and orders of the components
are also represented, the user gets a quick overview of which orders are affected by a change or
where problems may occur.
(C) SAP AG AP220 3-32

Factors for Dynamic Pegging Relationships
Backward Backward Forward pegging No backward

pegging edge pegging edge edge pegging edge
Receipts
Alert
Time
Requirements
1h 3h 2h 25 h
= Pegging edge
APO Product A
Demand tab
Determining factors: Dynamic pegging
n Maximum length of a backward pegging edge: 24 hours

n Maximum length of a backward pegging edge without alerts: 2 hours
n Maximum length of a forward pegging edge: 24 hours
n Maximum length of a forward pegging edge without alerts: 2 hours
ã SAP AG 2001
n Maximum length of a backward pegging edge (Requirement maximum of (time) before receipt
field): You enter the maximum length of time between a receipt and an issue element permitted for
the system to create a pegging relationship between the two when the issue element is scheduled
before the receipt element. If the difference is larger than the maximum duration defined here, the
system does not create a pegging relationship.
n Maximum length of a backward pegging edge without alerts (Alert if requirement more than
...before receipt field): You enter the time up to which an exception message can be given if a
requirements element is chronologically before a receipt element and a pegging relationship exists
between the two. If the difference is small, the planner may not have to react. The problem might be
solved locally in production. If the difference is large, a relationship may need to be created. In this
case, an exception message is generated for the planner.
n Maximum length of a forward pegging edge (Receipt maximum of (time) before requirement
field): You enter the maximum length of time between a receipt and requirement element that is
permitted for the system to create a pegging relationship between the two when the receipt element is
scheduled before the requirement. This is especially important for perishable goods since the product
cannot be stored long before it is consumed.
n Minimum length of a forward pegging edge for alerts (Alert if receipt more than ...before
requirement field): You enter the time up to which an alert can be given if a receipt element is
chronologically before a requirement element and a pegging relationship exists between the two.
n The format for all entries is HHHHHH:MM, HHHHHH standing for hours and MM for minutes.
This means that a maximum of 999999 hours and 99 hundreds of a minute can be entered. An
uninterrupted time stream is used to calculate the duration, which means a factory calendar and shift
model are not taken into account.
(C) SAP AG AP220 3-33

Fixing Order Quantities and Fixing Dates
• Fixing dates
• Fixing the order quantity
ã SAP AG 2001
n You can fix the date and quantity of an existing order to keep an order from being changed if new
orders are scheduled automatically, optimization is performed, or changes are automatically
transferred to a higher level.
n Fixing dates: You can fix the dates of an order by fixing the operation. The date is not changed for a
fixed operation if you have manually rescheduled the operation in the planning board in detailed
scheduling.
n Fixing the order quantity: The order quantity is fixed in the following cases:
Changing the component quantity manually:
- If you change the order quantity of a component, the system automatically sets the Input fixed
and Output fixed indicators.
- If the Input fixed indicator is set, the product requirements of an order are fixed. If the
production process model (PPM) for the order is changed, that is, you change the quantity of a
component, the PPM is not exploded again for the order. The status is the same as a fixing of
the explosion in the R/3 System.
- If the Output fixed indicator is set, the order quantities of the product receipts are fixed. The
quantity of an order with this status cannot be changed or deleted in automatic planning even if
the requirements quantity has changed. The status is the same as for order header fixing in the
R/3 System. Production orders and purchase orders transferred from the R/3 System have the
status Output fixed in APO.
Manually setting the Output fixed indicator: You can do this for each order in the Process order
dialog box.
n Planned orders transferred from APO to R/3 are fixed in R/3. In this case, it does not matter if they
are fixed in APO or not.
(C) SAP AG AP220 3-34

Planning Time Fence (1)
The planned order is The new planned order is

only scheduled here if scheduled with the start
the MRP controller date at the end of the firm
manually reschedules it. or trade-off zone.
Fixed planned order
A
*
10 20 30 10 20 30
C D C D
Time
End of planning time fence

Today
Existing New
requirement Requirement
Planning time fence (Example: 15 days)
(In this time period, receipts are fixed)
ã SAP AG 2001
n The planning time fence specifies a time period in which changes to the production plan could have
a negative effect on the requirements plans of the components, capacity plans, customer deliveries or
costs. You can use a planning time fence to prevent automatic changes from being made to
production within a certain time period. Within the planning time fence, only manual changes can be
made to the receipt elements. Automatic changes by a heuristic or an optimizer are not executed
within the planning time fence.
n You can maintain an individual value (such as 15 days) for the planning time fence for each product.
The end of the firm or trade-off zone can be placed interactively on a certain date (such as 1 May) on
the planning interface for each product. The fixed area is determined from the maximum of the
planning time fence and the time fence.
n If the system generates planned orders that are outside of the firm or trade-off zone, they can be
changed according to the planning logic of the system. Within the firm or trade-off zone, changes
can only be made manually by the MRP controller.
n If a new requirement is added to the firm or trade-off zone for example, the system generates a
planned order and puts it at the end of the firm or trade-off zone with the start date (forward
scheduling). This ensures that the existing plan is not influenced.
n Planned orders that end up in the planning time fence due to advancing time are fixed dynamically,
as soon as their finish date (not start date) is in the planning time fence.
n Planned orders that are rescheduled by the MRP controller are considered "fixed" and are not
changed by the system. Planned orders within the firm/trade-off zone are also considered fixed.
Fixed planned orders are marked with a star (*) in reports.
n Prerequisite: If you maintain a certain number of work days in the Planning time fence field on the
MRP tab in the R/3 material master, this value is transferred to the Planning time fence field in the
APO product masters via the R/3-APO interface.
n Note: The propagation of changes within constraint propagation also takes place within the planning
time fence, which means it is also in some way part of manual changes. The use of the planning time
(C) SAP AG AP220 3-35
fence can be switched off for the whole planning version. You can do this in planning version
maintenance.
(C) SAP AG AP220 3-36

Planning Time Fence (2)
Bill of
material
A
B1 B2
Automatic
C1 C2 Manual procurement
monitoring proposals
B1
*
Planning levels
End of the
B2 * planning time
C1 * fence
C2 * Not fixed
*
Time
ã SAP AG 2001
n In this graphic, the planned order for product A is within the firm/trade-off zone. It is therefore
considered fixed and not automatically rescheduled.
n The supply plan for the components therefore remains stable.
n If required, the system suggests changes to the plan that are displayed as exception messages in the
reporting lists. The MRP controller can check these messages and decide whether or not to make the
changes.
n Planned orders that are fixed via the planning time fence are fixed dynamically and therefore not
marked for a fixed dates or fixed order quantity.
(C) SAP AG AP220 3-37

Steps in the Production Planning Run (1)
Net Reqmts Calculation

Lot-size calculation
Procurement type
PPM explosion
Scheduling
ã SAP AG 2001
n Net requirements calculation is the first step in the production planning run:
The system checks whether the requirements (for example, sales order, planned independent
requirements) can be covered by available warehouse stock or by receipts (orders).
(C) SAP AG AP220 3-38

Net Requirements Calculation
In material requirements planning
Shortage
Receipt in the amount

of the lot-sizing procedure
Requirements
Fixed receipts, for example, (Sales orders,

purchase orders plnd ind. reqmts,
dependent reqmts,
reservations,
Compare etc.)
Fixed planned orders,
fixed purchase requisitions
Stock
Safety stock
ã SAP AG 2001
n The available MRP stock is compared to the fixed receipts (purchase orders, production orders fixed
planned orders, fixed purchase requisitions, etc) on the one hand, and the requirements including the
safety stock on the other hand (the safety stock is considered a requirement that also has to be
covered).
n The system uses pegging relationships (links) to assign the requirements to available receipt
elements. When enough stock or orders are available to cover the requirements, planning is
complete.
n A shortage results when not enough stock or orders are available to cover the requirements. In this
case, lot-size calculation determines in what amount a receipt is required.
n Net requirements calculation process for fixed orders that are chronologically delayed after a
requirement (and if delayed, are not allowed in the product master due to the Maximum duration of a
backward pegging field): In this case, planning tries to generate a new planned order that covers the
requirement in time (at or before the requirements date). If this is possible capacity-wise, a new
planned order is created, and the fixed late planned order contains an exception messages (alert),
which states that there is a surplus. If the newly generated planned order cannot be scheduled in time
for capacity reasons, (if, for example, the capacities are already committed) and is not scheduled
until after the fixed planned order, the system recognizes that the new planned order would be less
suitable that the fixed planned order and the new order is not created.
(C) SAP AG AP220 3-39

Net requirements calculation
Procurement type
PPM explosion
Scheduling
ã SAP AG 2001
n In net requirements calculation, the system calculates the shortage quantities for each requirement
date. These shortage quantities must be covered by receipt elements. The amount of the receipts is
determined by the system during a planning run in lot-size calculation.
n You determine how the lot sizes are calculated by choosing a lot-sizing heuristic in the product
master (PP/DS view). If you have not entered a lot-sizing heuristic in the product master, the system
uses the heuristic you defined in Customizing for PP/DS as the product heuristic. The lot-sizing
heuristics in the product master perform a fixed, predefined lot-sizing calculation, while also taking
the lot-sizing parameters (such as the maximum lot size, the rounding value, the fixed lot size)
maintained on the Lot size tab in the product master into account.
n If you use the lot-sizing heuristic SAP_PP_002 (planning standard lots), only the lot-sizing
parameters defined on the Lot size tab in the product master are used (for example, the fixed lot size
100 pieces). You can use other lot-size calculation functions when you choose a different lot-sizing
heuristic: If you have chosen, for example, lot-sizing heuristic SAP_PP_004, you can use different
periods of different lot-sizing procedures. In this case, the lot-sizing heuristic SAP_PP_004 also
considers the lot-sizing parameters defined on the Lot size tab in the product master, such as fixed lot
size = 100 pieces or rounding values allowing rounding to be performed.
n The result of the lot-size calculation is the quantity to be produced or procured. You can display and
change this quantity in the procurement proposal.
(C) SAP AG AP220 3-40

Product Heuristics
(Lot-Sizing Procedure)
To be entered in Heuristics
Heuristics for
for
the material master production
production planning
planning

functions)
Static, Optimizing
periodic procedure
Planning of Part period
standard lots balancing
SAP_PP_C001: SAP_PP_006:
Planning standard Least unit cost proc.:
lots for conti -I/O External procurement
SAP_PP_003:
SAP_PP_014:
Planning of material
Groff procedure
shortage quantities
SAP_PP_004:
Weekly lots in
4 week horizon
SAP_PP_007:
Reorder point
planning
ã SAP AG 2001
(C) SAP AG AP220 3-41

Weekly Lots in 4 Week Horizon
SAP_PP_004:
Weekly lots in
Receipts 4 week horizon
Exact analysis Forecast analysis Exact analysis

short-term medium term long-term
For example, For example, For example,

exact lot size weekly lot size monthly lot size
Requirements
ã SAP AG 2001
n SAP_PP_004: Weekly lots in 4 week horizon: This heuristic is used to divide the time axis in up to
3 different areas for planning. This allows you to perform lot-size calculations in these time periods
using different lot-sizing procedures. You are given a rough forecast of the future production plan in
the long-term area (weekly lot size), but use an exact lot size in the short-term area.
n The settings for the different lot-sizing procedures are maintained like Customizing for heuristics.
The key for the lot-sizing procedure determines the lot size to be used in the short-term horizon for
the short-term area as well as the end of the short-term area or the beginning of the medium-term
area. You define the length of the short-term period by entering the periodicity (such as month or
week) and the number of periods. You also determine the length of the medium-term area and the
end and beginning of the long-term areas by entering the valid lot-sizing procedures.
(C) SAP AG AP220 3-42

Reorder Point Planning Heuristic: Consumption-
Based Planning
Stock SAP_PP_007:
Reorder point
planning
Prod. storage Fill to prod. storage capacity
capacity
Reorder
point
Safety
stock
Reorder point Delivery time Time

Replenishment
time
Material A, MRP tab Product A, Lot size tab APO

MRP procedure Stock data
Reorder point 1000 pcs Reorder point 1000 pcs
Lot size data
1600 pcs Prod. stor. capacity 1600 pcs
Maximum stock level
ã SAP AG 2001
n Manual reorder point planning belongs to the consumption-based planning procedures. This
procedure is especially simple and is primarily used for B items and C items, products that are
produced in high quantity but which have low value.
n The planning is controlled by a manually entered reorder point (for example, 1000 pcs). In the
production planning run, the system only checks whether or not this reorder point has been reached
(whether the stock is below 1000 pieces). If the stock is below the reorder point, procurement is
triggered in the amount required to reach a defined product storage capacity (Fill to maximum stock).
The procurement element (the purchase requisition or planned order) is scheduled from today's date
via forwards scheduling (here the planned delivery time of the product at the supplier as well as the
goods receipt processing time from the product master are taken into account). If it is a stock
transfer, the goods issue processing time in the delivering location, the transportation duration and
the goods issue processing time in the receiving location are taken into account.
Procurement is not triggered again, however, if receipts that are already fixed (such as fixed purchase
requisitions or planned orders) are in the future for the whole period.
n Prerequisite: In the R/3 material master, you have maintained the fields Reorder point and Max.
stock level and transferred them to the Reorder point and Prod. stock capacity fields in the APO
product master via the R/3-APO interface. Additionally, you have maintained the Reorder point
planning heuristic in the APO product master.
n If, for example, scheduling agreement delivery schedules have been directly generated for externally
procured materials by planning, there is little administrative effort for this type of planning.
n Consumption-based planning only makes sense for materials with similar consumption processes
and, in addition, timely inventory management is required.
(C) SAP AG AP220 3-43

Optimum Lot-Sizing Procedures
Several deliveries/ Limited stockholding/

high order costs limited storage costs
Few deliveries/ Large stockholding/

limited order costs high storage costs
ã SAP AG 2001
n Dynamic lot-sizing procedures optimize the total costs, which consist of order costs (lot size fixed
costs) and storage costs.
n Based on different cost criteria, the different dynamic procedures combine current and future
requirements into a lot in such a way that the total costs are optimized.
n SAP_PP_005: Part period balancing: You can use this heuristic to calculate the setup and storage
costs while calculating the lot size. Starting from the date of the product shortage, sequential
requirements are collected in a lot until the total storage costs exceed the setup costs. This procedure
takes lot-size parameters into account.
n SAP_PP_006: Least unit cost procedure: External procurement: You use this heuristic to
optimize order quantities while taking requirements, storage costs and suppliers into account. The
system considers the different delivery periods and discount levels of the suppliers and determines
the costs per unit for each supplier, while also taking the storage costs into account (discount levels
are also taken into account in static, periodic lot-sizing procedures, but not in optimizing procedures
SAP_PP_005). Lot sizes are formed based on optimum discount levels and costs per unit.
n SAP_PP_014: Groff procedure: See online help.
(C) SAP AG AP220 3-44

Static Lot-Sizing Procedure
Lot-for-lot
Quantity
Receipts
Reqmts
Time (exact)
6:00 8:00 10:00
Fixed lot size
Replenish to maximum stock level

(only in combination with the heuristic SAP_PP_007, reorder point planning)
ã SAP AG 2001
n For an exact lot size (lot-for-lot) a procurement proposal is created in the amount of the shortage. If
there are several requirements for one day leading to a shortage, procurement proposals are generate
using exact times (to the second). For the corresponding requirements date, the planned warehouse
stock equals 0. If you want to generate a procurement proposal in the total amount of the shortage
quantity (such as one day), you can use the period lot-sizing procedure.
n Fixed lot size: If there is a shortage of a product, the system uses the fixed lot size defined in the
product master record in its calculation. If the quantity of the fixed lot size is not enough to cover the
shortage, several lots in the amount of the fixed lot size are scheduled at the same time until there is
no more shortage.
Use: It is a good idea to choose a fixed lot size for a product if technical issues, such as the pallet size
or tank content, so require.
n If you replenish to the maximum stock level a procurement proposal is created for the amount of a
defined maximum stock level for shortages (Maximum product stock capacity field in the APO
product master). If the shortage quantity of a day is larger than the maximum stock, the lot size
equals the shortage quantity. A balanced stock/requirements situation has priority over the lot-sizing
procedure. Another option is that so much can be ordered that the maximum stock is reached and
further requirements are also covered (in the APO product master, reorder point planning can be
combined with all lot-sizing procedures: for example, the fixed lot size can be set or the rounding
value can be used, for example, minimum lot size, maximum lot size, rounding quantity).
Prerequisite: In the PP/DS view in the APO product master, maintain the heuristic SAP_PP_007
reorder point planning. In accordance with the standard Customizing, this heuristic prefers a
heuristic of replenishing to the maximum stock level (Maximum product stock capacity field in the
APO product master), as soon as a certain reorder point has not been reached (reorder point
planning). Therefore, maintain the maximum stock level in the R/3 material master in the maximum
stock level field. This value is transferred to the Maximum product stock capacity field in the APO
product master via the R/3-APO interface. Also maintain the reorder point in the R/3 material master
in the Reorder point field. This value is transferred to the Reorder point field in the APO product
master via the R/3-APO interface.
(C) SAP AG AP220 3-45
(C) SAP AG AP220 3-46
Static Lot-Sizing Procedure: R/3 Integration
APO
MRP 1 Lot size
Lot-size data Procedure
EX Lot-for-lot Lot-for-lot
Lot size
HB Repl. to max. Fixed lot size
... level
stock Maximum product
Maximum stock 100 stock capacity 100
APO
MRP 1 Lot size
Lot-size data Procedure
Lot size FX Fixed ord. qty Lot-for-lot
Fixed lot size 100 pcs Fixed lot size 100 pcs
By period Per. ind.
Customizing lot size FX
Lot-size ind. F Fixed lot size
ã SAP AG 2001
n The static lot-sizing procedures lot-for-lot, fixed lot size and periodic lot-sizing can be transferred
from the R/3 material master to the APO product master via the R/3-APO interface.
n The lot-sizing procedure lot-for-lot in the R/3 material master is transferred to the APO product
master as the "lot-for-lot" lot size.
n The R/3 fixed lot size is transferred to APO as the fixed lot size. The system refers to Customizing
for the R/3 lot-sizing procedure (see the Customizing step "Check Lot-Sizing Procedure"): If the lot-
sizing indictor is defined here as "F" the fixed lot sized is set in APO. The value defined in the R/3
material master is also transferred for the fixed lot size.
n The lot-sizing procedure replenish to maximum stock level is transferred from the R/3 material
master to the APO product master as lot-for-lot since the replenish to maximum stock level
procedure is represented differently in APO. In APO, replenishment to maximum stock level is
possible in connection with consumption-controlled reorder point planning, which is controlled in
APO via a heuristic in the product master that can be combined with any other lot-sizing procedures
(for example, lot size in combination with rounding values). The reorder point and maximum stock
level maintained in the R/3 material master are transferred via the R/3-APO interface as the reorder
point and maximum product stock capacity.
n The Lot-size calulation in sales order planning indicator in the APO product master (Lotsize view)
allows you to specify that a certain lot-size procedure is to be used in make-to-order production or
individual project planning. If you do not set the indicator, an exact lot size is always used and the
system does not consider additional restrictions such as the minimum and maximum lot size or the
rounding value when planning for make-to-order production or project individual planning.
(C) SAP AG AP220 3-47

Period Lot-Sizing Procedure
H Hourly lot size D Daily lot size
W Weekly lots size M Monthly lot size

J 10 days of a month
Period length Period length Period length
Receipts
Time
Requirements
Period 1 Period 2 Period 3
ã SAP AG 2001
n In the period lot-sizing procedure, the system combines the procurement of requirement quantities
within a time segment to a lot size. The period lengths can be hours, days, weeks, months, or 10 day
"decades" (asian: decades of a month are the periods between the first, tenth and twentieth of a
month ) or periods that can be user-defined according to the planning calendar.
n You can choose the number of periods within which the procurement quantity is to be combined. If
the number is to be larger than one, the number is entered in the No. of periods field in the R/3
Customizing step Check Lot-Sizing Procedure for the lot-sizing procedure selected in the R/3
material master. This value is also transferred to the APO product master.
n You can place the resulting receipt at the period start, period finish, or on the date of the first
requirement, by maintaining the corresponding value in the Scheduling field in the Customizing step
Check Lot-Sizing Procedure . This value is also transferred to the APO product master.
If you have specified in Customizing that the availability date is at the start or finish of the period,
the date of the planned order generated is moved accordingly.
(C) SAP AG AP220 3-48

Lot Size According to Planning Calendar
Period lot size according July 2000

K
to planning calendar Mo Tu We Th FR SA SO
1 2 3 4 5 6 7
8 9 10 11 12 13 14
000 15 16 17 18 19 20 21
3/2 00
, 7/ 20 22 23 24 25 26 27 28
We /
00
0
/1
7/20
07
We
e,
W
07/1
, 07
/24
We,
/
20
00
Time
Period 1 Period 2 Period 3
ã SAP AG 2001
n In the period lot-sizing procedure according to the planning calendar, the system combines the
procurement of requirements quantities within a time segment (for example, between each
Wednesday) to a lot size that is defined using the planning calendar.
n Prerequisite: Maintain the lot-sizing procedure lot size according to planning calendar in the R/3
material master or the lot-sizing procedure period lot-size with the period indicator calendar in the
APO product master. Maintain a planning calendar in the R/3 material master (MRP 2 view) or in the
APO product master (Lot size view). The planning calendar is defined in the R/3 requirements
planning menu (submenu of Master Data) or as the time stream in APO Customizing.
(C) SAP AG AP220 3-49

Period Lot-Sizing Procedure: R/3 Integration
APO
MRP 1 Lot size
Procedure
Lot size PL Period lot size
Lot-for-lot
Customizing lot size PL Fixed lot size
Lot-sizing proc. P Period lot size By period
T Daily D Day
Lot-size ind. W Weekly Period ind. W Weekly
M Monthly M Monthly
No. of periods 1 No. of periods 1

Scheduling
Reqmts date
Avail. date Period
Scheduling 1 Period start X 0
ind. factor
2 Period end X 1
ã SAP AG 2001
n The period lot-sizing procedure can also be transferred from the R/3 material master to the APO
System.
n The system refers back to R/3 Customizing, which is behind the lot-sizing procedure in R/3 (see the
R/3 Customizing step Check Lot-Sizing Procedure). If "P" (period lot size) has been defined for the
lot-sizing procedure here, a period lot size will also be set in APO.
Additionally, the Lot size indicator in Customizing determines which period indicator is transferred
to APO: The period indicators D (day), W (week), and M (month) can be transferred. If you want to
use the periodicity H (hours) and transfer the data from R/3, you can use a customer exit to do this
(since the periodicity H is not realized in R/3).
The number of periods within which the procurement quantity is to be combined is also transferred.
n The Scheduling indicator in R/3 Customizing of the lot-sizing procedure is transferred to APO in the
same way: For the setting Availability date=Requirements date, the Availability date indicator in the
product is left blank for the product, for the setting Availability date=Period start the Availability
date indicator is set to X and the period factor to 0, for the setting Availability date=Period end the
Availability date indicator is set to X and the period factor to 1. Additionally, you can use any period
factor (for example, 0.5) to make the availability date of the procurement element exactly, for
example, half of the period in the APO product master. If you want to use a period factor (such as
0.5)and transfer the data from R/3, you can use a customer exit to do this (since the period factor 0.5
is not realized in R/3).
(C) SAP AG AP220 3-50

Rounding in Lot-Size Calculation (1)
l Minimum lot size: The minimum lot size specifies a minimum

procurement quantity that must be reached for each lot
l Maximum lot size: The maximum lot size specifies a maximum
procurement quantity for each lot
l Rounding value: You enter a rounding value and can round up to a
?
multiple of its value
Requirement Order Proposal
Product A
R/3 Lot size APO
Mat. A Min. lot size 10 pcs
Lot-size Max. lot size 200 pcs

data Rounding value 5 pcs
ã SAP AG 2001
n Use: Rounding is used to adjust units of measure to delivery and tranportation units of measure when
planning product requirements. For example, you must round when orders can only be delivered in
containers of 10 pieces.
n You can maintain the following rounding options in the product master:
Minimum lot size: The minimum lot size specifies a minimum procurement quantity that must be
reached for each lot
Maximum lot size: The maximum lot size specifies a maximum procurement quantity for each lot
Rounding value: You enter a rounding value and can round up to a multiple of its value
n Prerequisite: In the MRP 1 view of the R/3 material master, you maintain a minimum and/or
maximum lot size and/or a rounding value. They are transferred to a field of the same name in the
product master (Lot size view) via the R/3-APO interface.
(C) SAP AG AP220 3-51

Procurement type
PPM explosion
Scheduling
ã SAP AG 2001
n While the procurement proposal is being determined, the system checks whether the receipt is to be
procured via in-house production or external procurement.
n Note on planning externally procured products in APO: You can use planning tools and planning
functions, such as finite scheduling of products (including externally procured products) and
heuristics for purchase order optimization in APO to efficiently plan critical materials that are
procured externally. Purchasing information that is now available in the APO System allows you to
improve cooperation between the plant and suppliers. You can, for example, send suppliers delivery
schedules directly by e-mail when processing scheduling agreements, or have the suppliers confirm
the delivery schedules via the Internet. Another advantage of planning externally procured products
in APO is that you can use resources to schedule externally procured orders in production planning
and detailed scheduling. This allows you to exactly schedule goods receipts, transportation and
goods issues while taking capacity into account.
(C) SAP AG AP220 3-52

Procurement Types
Procurement Types
In-house production External procurement
Production in Stock transfer

Subcontracting Consignment Supplier
own plant from other plant
Planned orders Purchase requisitions

Delivery schedules for scheduling agreements
Delivery schedules for quantity or value contracts
Procurement types
Special procurement types
ã SAP AG 2001
procured via in-house production or external procurement. External procurement in APO can be both
procurement from external suppliers or procurement from a different plant. The most important types
of external procurement include scheduling agreements, purchasing info records, contracts,
subcontracting, and consignment. The selection of the procurement type is controlled via the
Procurement type field in the product master (Procurement view):
If you have entered in-house production, the system generates planned orders.
If a product is to be procured externally, the system generates purchase requisitions, or delivery
schedules for scheduling agreements or contracts.
If you have specified that the product can be procured externally or produced in-house, the system
can create planned orders for in-house production, or purchase requisitions, delivery schedules for
scheduling agreements/contracts or stock transfer orders for external procurement.
n Prerequisites:
You have defined the procurement type on the MRP tab in the R/3 material master (E for in-house
production, F for external procurement or X for in-house production or external procurement).
This is transferred via the R/3-APO interface to the product master (Procurement tab).
If a source of supply determination is also to take place for suppliers, you must transfer purchasing
info records, scheduling agreements, and quantity or value contracts from R/3 to APO. A source
list is not required in APO like it is in R/3. The source of supply determination always takes place
in APO via priorities and costs, and not via a source list.
If a type of procurement other than in-house production or external procurement is used, this is
controlled by the special procurement key in the R/3 material master (for example, transfer stock
from other plants, subcontracting). In APO, special procurement is visually represented in a
different manner. Stock transfer from a different plant is realized using a transportation lane
between the delivering and receiving plants.
(C) SAP AG AP220 3-53

Automatic Source of Supply Determination (1)
Selection of source
of supply for
in-house production
and external
procurement
1. Meeting due dates

2. Priorities
3. Costs
ã SAP AG 2001
n Determination of alternative procurement possibilities: During planning, the system choose the
source of supply based on the following criteria: 1. Meeting due dates: A source of supply is used
which can deliver the required quantity on time. 2. Priority (highest priority = 0): If several sources
of supply can deliver on time, the source of supply with the highest priority is selected. 3. Costs: If
there are several sources of supply with the same priority, the system considers the costs.
n Prerequisite: You have alternative sources of supply for the product (different PPMs for in-house
production, and for external procurement different transportation lanes in the Supply Chain Engineer
due to the transfer of different purchasing info records, scheduling agreements and/or contracts from
R/3).
You have maintained priorities in the product-plan assignment in the PPM.
You have maintained the procurement costs for each alternative:
- For in-house production, maintain the costs in the PPM (Goto -> Costs). You can maintain the
costs for the actual procurement operation (Costs - single-level) and for the complete
procurement operation starting from this level (Costs - multi-level). Single-level costs are only
used in SNP optimization to evaluate a plan, and multi-level costs are used in PP/DS to select
the source of supply (make sure that the costs are comparable for all production levels!). The
costs do not have to be entered in a specific currency or have anything to do with the actual
costs. Only the alternatives for a product are compared.
- For external procurement and stock transfers, you maintain the costs for the manually created
transportation lanes in the Supply Chain Engineer. If you have transferred purchasing info
records, scheduling agreements or contracts from the R/3 System, the costs (purchase price)
maintained there are displayed directly in the external procurement relationships. You can,
however, maintain or change the priorities and costs in the transportation lanes from the
external procurement relationships at any time. SNP procurement costs from the product master
(Procurement tab) are not considered in PP/DS.
(C) SAP AG AP220 3-54

Automatic Source of Supply Determination (2)
l Procurement type E (in-house production)

l Procurement type F (external procurement):
l Procurement type X (in-house production or external

procurement)
R/3 Product A APO

Procurement
Mat. A
Procurement Procurement type E, F or X
type
ã SAP AG 2001
n Procurement type E (in-house production): If you have maintained several PPMs for in-house
production, the system determines the PPM with the highest priority. If several PPMs have the same
priority, the system chooses the PPM with the most favorable costs based on the costs you have
entered for each PPM. If the most cost effective PPM cannot be used on the requirements date (for
example, because there is no available capacity at the resource on this date and this would cause a
due date violation since the order could be planned until later), the system chooses the next most
favorable alternative. If all PPMs cause a due date violation, the PPM for which the time of
requirements coverage is the closest to the time of the requirement is selected.
n Procurement type F (external procurement): In external procurement, the system determines
the source of supply using the data you have maintained in the transportation lanes and in the
external procurement relationships. It also chooses an alternative based on the priorities and costs.
If the system does not find any transportation lanes/external procurement relationships, it generates a
purchase requisition without a supplier and uses the planned delivery time from the product master
(GI/GR tab).
n If both in-house production and external procurement are allowed (procurement type X), the
APO System chooses the source with the highest priority. If several procurement options have the
same priority, the option with the most favorable costs is used. The costs in the transportation
lane/external procurement relationship and the PPM are compared. If the costs are the same, the
system triggers in-house production.
n Procurement type P (external procurement planning): The product is not produced in the
location, nor are orders created for it. Unlike in-house production or external procurement, the
planning does not take place in APO. Instead, stock shortfalls are replenished by the OLTP system.
n Note: If you have specified quota arrangements and entered a quota arrangement heuristic in the
Heuristics field on the PP/DS tab in the product master, the requirements quantities are distributed
according to the defined quotas. The quota arrangement items are planned according to the heuristic
defined at the quota arrangement item level. The quota arrangement therefore has the highest
priority.
(C) SAP AG AP220 3-55
(C) SAP AG AP220 3-56
Procurement type
PPM explosion
Scheduling
ã SAP AG 2001
n For assemblies produced in-house, a PPM is exploded: When exploding PPMs for products, the
system determines component requirements as well as the net duration and resource consumption of
activities. The system takes restrictions into account (for example, min-max relationships, scrap, etc.)
The valid PPM is determined and exploded for each planned order in the planning run.
(C) SAP AG AP220 3-57

PPM Explosion
Goal
Meet deadlines, priorities,

costs Selection of PPM
Time-based validity / lot size

Selection of PPM
Use
(PPM) Selection of PPM use
(in PP/DS only PP/DS-PPM)
Plan explosion
(product master) Selection of BOM
(PPM explosion, BOM/routing explosion R/3, runtime object)
ã SAP AG 2001
n The PPM is exploded in the planning run for each new planned order of an assembly. The valid PPM
is determined in the following steps:
In the product master, the system checks whether the plan explosion is to take place via the PPM
in APO, via the BOM/routing in R/3 (which is not recommended), via the runtime objects or via
the iPPE (for customers who use an R/3-DI System, Automotive, Aerospace&Defense, High
Tech).
For the PPM explosion, the system checks which PPM PP/DS-PPM uses.
The system checks which PPM is valid for the order quantity and the order date (Finish date
?????)
If several PPMs meet the selection criteria, the PPM is selected based on the following points:
1. meeting deadlines 2. priorities and 3. costs.
n The validity of a PPM is also specified by the Active indicator. The PPM must be active to be used
in the production planning run.
(C) SAP AG AP220 3-58

Procurement type
PPM Explosion
Scheduling
ã SAP AG 2001
n The system plans the orders in the following way:

For external procurement, the planned delivery time of the product is determined from the supply
relationships maintained in APO.
For in-house production, the APO System explodes the PPM and performs detailed scheduling to
determine the dates for the order.
- When PPMs are exploded for products, the system determines component requirements as well
as the net duration and the resource consumption of the activities. The assembly scrap is taken
into account when the component requirements are determined.
- The activities are scheduled at the resource so that the requirements data of the components can
be determined. The system takes the settings maintained in the strategy profile into account
when scheduling, which means it considers the contraints defined, such as component
availability and resource capacity.
A distinction is made between bottleneck resources and non-bottleneck resources. There are
usually only a few bottleneck resources in a production plant and the rest are non-bottleneck
resources. For each resource you can specify finite or infinite scheduling. In most cases you will
only perform finite scheduling for bottleneck resources. Additionally you can still schedule those
resources finitely that you suspect to be bottleneck resources. For non-bottleneck resources you
usually use infinite scheduling.
Constraint violations, such as a customer requirement date not being met or the capacity of a finite
resource being exceeded, are displayed as Alerts. The planner can change the scheduling results
manually.
(C) SAP AG AP220 3-59

Time Elements in Scheduling
Availability date
Operations
Start date End date

Finished
product 10 20 30
Stock transfer 10
GR processing time
to a different
plant GI processing time GR processing time
Assembly of
a different 10 20
plant
10 GR processing time
GR processing time
Time Reqmts date
ã SAP AG 2001
n When the lot size of the planned order has been determined and the PPM has been exploded, the
production planning run calculates the dates of the planned orders.
The dependent requirement dates of the planned orders are moved to the dates of the assigned
operations (PPM). A material order appropriate for the operation is then possible.
n The system assumes material staging according to component assignments in the PPM to the
operations in the PPM. The dependent requirement dates of the BOM components are moved to the
production start dates of the operations to which they are assigned.
(C) SAP AG AP220 3-60

Basis and Constraints of Detailed Scheduling
Resource: Available capacity, rate of capacity utilization,

parallel scheduling with several activities (multi-activity
resources)
PPM: Activity duration, interruptibility of activities,
minimum and maximum allowed time intervals between
activities
Strategy profile: For example, finite or infinite scheduling
ã SAP AG 2001
n During detailed scheduling, the system determines to the second the exact start and finish dates for
the activities of orders or operations at the resources, and schedules the orders and operations at the
resources. Capacity availability and pegging relationships can be considered simultaneously. In
addition to the desired scheduling date of the operation or order, detailed scheduling is based on the
net durations and resource consumptions of the activities that the system calculates during the
explosion of the production process model on the basis of the quantities to be produced.
n Detailed scheduling constraints can be specified in:
• Production process model (PPM): Along with the resource consumption and activity duration
(defined per base quantity of the main product), you can also specify, for example, whether there
are time relationships between the activities of different operation, how large the minimum and
maximum time intervals are between the activities, and whether activities can be interrupted by
non-working times (breaks).
• Resource: Along with the working and non-working times, you can also specify the rate of
capacity utilization for the resource, whether the resource can be occupied by several activities at
the same time (multi-resource ), or whether it can only process once activity at a time (single-
resource), how large the capacity of the multi-resource is, whether the resource is to be scheduled
finitely or infinitely.
• Strategy profile: Here you specify the detailed scheduling strategy with which the system performs
scheduling or rescheduling.
(C) SAP AG AP220 3-61

Scheduling Strategies: Configuring APO to Fit
Your Requirements
l Scheduling directions: Forward, backward,

and reverse
l Finding slots (finite scheduling)
l Infinite scheduling
l Consideration of pegging relationships
l Consideration of order-internal relationships
l ...
ã SAP AG 2001
n You use the detailed scheduling strategy to specify which rules the system uses to schedule or
reschedule orders and operations, and which scheduling constraints (for example, product and
resource availability) it considers when doing this. Additional operations may be affected by the
scheduling or rescheduling of an operation that you have selected for scheduling. The system must
also reschedule these operations so that the schedule remains consistent. Rescheduling an order can
therefore trigger a chain reactions of further rescheduling.
n Scheduling direction: Specifies in which direction the system searches for a scheduling date,
starting from the desired scheduling date.
n Offset time: Time period in which you can move the earliest start date for an operation or order from
the current date or current time into the future or past.
n Find slot: Schedules an operation in the first slot with sufficient capacity in the scheduling direction.
n Insert operation: Schedules an operation in an existing schedule on or as close as possible to the
desired date.
n Finite scheduling: Considers the existing capacity load on the resource caused by the operations
already scheduled.
n Schedule to non-work times: Schedules operations manually, that is, using drag and drop, to non-
working times. This strategy is only relevant for the planning table.
n Scheduling sequence: Specifies in which sequence the operations or orders for an operation group
or order group are scheduled.
n Consider order-internal relationships: Considers the relationships and the time constraints
between activities and operations.
n Consider pegging relationships: Considers fixed and dynamic pegging relationships between
orders.
(C) SAP AG AP220 3-62

Strategy: Finite Scheduling - Backward
l Scheduling mode: find slot

l Planning direction: backward
Desired date
and quantity
20
Resource 2
10
Resource 1
Today t
Available
Occupied
New order
ã SAP AG 2001
n Resource availability: In general, you can only process activities during the working times of a
resource, and you can therefore only schedule these activities in regular working times. You can
schedule activities finitely or infinitely, that is, with and without consideration of the resource
capacity and the existing resource load. If necessary, it must be possible to interrupt any activities
that last longer than a related working time so that they can be scheduled.
n Dates and planning directions: Starting from the desired date, the system searches for a scheduling
date in the set planning direction for the last activity (planning direction backwards) or for the first
activity (planning direction forwards) of an operation or an order. In doing so, the system considers
the settings in the strategy profile, in the PPM and in the resources. When the first activity is
scheduled, the next activity in the planning direction is then scheduled, and so on until all activities
of the operation or the order are scheduled. The system basically cannot schedule an application-
specific activity before the earliest possible date or after the latest possible one.
(C) SAP AG AP220 3-63

Strategy: Finite Scheduling - Backward

l Planning direction: backward with reverse

and quantity date and quantity
20
Resource 2 20
10
Resource 1 10
Today
Available 1st loading attempt
Occupied Final loading after reverse

ã SAP AG 2001
(C) SAP AG AP220 3-64

Strategy: Finite Scheduling - Forward

l Planning direction: forward
20
Resource 2
10
Resource 1
Today t
Available
Occupied
New order
ã SAP AG 2001
(C) SAP AG AP220 3-65

Strategy: Infinite Scheduling - Backward
l Scheduling mode: infinite scheduling (scheduling on desired

date without checking the resource capacity)
l Planning direction: backward
Desired date ALERTS:
Resource overload
20
Resource 2
10
Resource 1
Today t
Available
Occupied
10 20 New order with operations 10 and 20

ã SAP AG 2001
n In the alert monitor profile, you define for which products and resources and for which situations the
system is to display alerts. Resource overload alerts are only displayed if you have defined a resource
as a finite resource.
(C) SAP AG AP220 3-66

Strategy: Infinite Scheduling - Forward
l Scheduling mode: infinite scheduling (scheduling on desired

date without checking the resource capacity)
l Planning direction: forward
ALERTS:
Resource Overload
20
Resource 2
10
Resource 1
Today t
Available
Occupied Earliest possible

start date
New order
ã SAP AG 2001
n You define in the alert monitor profile, for which products and resources and for which situations the
system displays alerts. Resource overload alerts are only displayed if you have defined a resource to
be a finite resource.
(C) SAP AG AP220 3-67

Strategy Profile - Planning Parameters
l Finite scheduling
n Specifies that during scheduling the system takes already
existing resource load into account
n Display of alerts depends on resource and strategy indicators
Indicators in strategy profile

Finite Infinite
strategy strategy
Rescheduling / No rescheduling /
Resource
indicator
Finite resource
alert alert
No rescheduling / No rescheduling /
Infinite resource
no alert no alert
ã SAP AG 2001
(C) SAP AG AP220 3-68

Strategy: Consider Relationships (1)
l Always consider
Resource 1
Resource 2
Min : 12:00:00 AM h
Resource 3
t
Today
Available Min : 12:00 h
Occupied
Order
ã SAP AG 2001
n Time relationships between activities: Time relationships can exist between activities that control
which minimum and maximum time intervals the activities can have. The system always considers
the obligatory end-start relationships between activities for an operation. For example, when you
have entered a minimum interval of one hour between two activities in an operation, the system
cannot schedule these activities in such a way that the time interval is less than one hour. Order-
internal relationships are the predecessor/successor relationships of activities and the time constraints
for the sequence of activities.
n In the detailed scheduling strategy, you can specify whether or not the system considers the time
relationships between activities for various operations.
(C) SAP AG AP220 3-69

Capacity Requirements Planning for Different
Resource Categories
Production Transport
Storage Handling
ã SAP AG 2001
n The resource category (P = production, T= transportation, S = storage, H = handling resource)

specifies the use of a resource. Production resources are work centers within production,
transportation resources can be trucks, handling resources may be, for example, fork lifts.
n Integration: Resource transferred from the R/3 System are always created as resources of resource
category P in APO. Resources of other resource categories can be maintained in APO.
n While planning in PP/DS, you can also consider, along with production resources, capacities of
storage, handling and transportation resources; for example, if you have a limited amount of storage
capacity at the end of the production line which you want to consider while planning.
n Prerequisites:
Maintain a resource of resource category storage or handling resource (Resource category field).
To be able to use this resource in PP/DS, use, for example, mixed-resources; mixed resources have
the advantage that you can also maintain a bucket available capacity along with a time-related
available capacity. You can decide whether to create these resources as finite or infinite resources.
In the product master (GI/GR tab), maintain a consumption of handling capacity for each unit of
the material (Consumption of handling capacity in goods receipt in unit of measure field): Is used
to calculate how much transfer capacity is used by the product for a certain plan. You enter the
handling resource to be used for scheduling in the production plant (location: Handling resource
field); Only one handling resource may be entered. The handling unit defined in the location is
always used to schedule goods receipt and goods issue times.
Example: if the handling resource can transfer 1000 liters per day and you specify 10 liters per
piece as the load transfer capacity consumption, the maximum rate is 100 pieces per day.
In the product master (GI/GR tab), maintain a consumption of storage capacity for each unit of the
material (Consumption of storage capacity per unit of material field): This is used to calculate how
much storage capacity is used by the product for a certain plan.
You enter the storage resource to be used for scheduling in the production plant (location: Storage
resource field); Only one storage resource may be entered. Example: If the storage capacity is 100
(C) SAP AG AP220 3-70
cubic meters and you have defined 5 cubic meters per piece as the storage capacity consumption,
you can store a maximum of 200 pieces.
n The consumption of storage capacity is reduced by the goods issue from the warehouse.
n Transportation resources can be maintained in the transporation lane.
(C) SAP AG AP220 3-71

Location Master Data for PP/DS
Master Data: Location

APO
Location 1000 Hamburg Plant
Loc.type 1001 Production plant
Resources Calendars
Handling resource
Resource inbound
Resource outbound
Storage resource
Time zone
Calendars
n Production
Geographical data n Warehouse
n Shipping
ã SAP AG 2001
n The time zone is used in PP/DS to convert times if the order dates are not to be displayed in the time
zone of the user, but rather in a different time (settings in the product view)
n The geographical data is only used in PP/DS to display the locations in the Supply Chain Cockpit.
(C) SAP AG AP220 3-72

Concept: Selection of Alternative Resources
Activity
Mode 1
Mode 2
30 min
60 min
Resource 1
Primary resources (machines, etc.) Capacity reqmts

Mode 1
Secondary resource (people, etc.) Capacity reqmts

Resource 2
Mode 2
Alternative primary resource Capacity requirements
Alternative secondary resource Capacity requirements
Time
ã SAP AG 2001
n Resource selection when using alternative resources: You can enter several alternative resources
in the PPM (via alternative mode maintenance) at which the activities can be executed.
(C) SAP AG AP220 3-73

Selection of Alternative Resources in Planning
1
Resource 1 and 2 are Resource 1
alternative resources
Resource 2
Time
2
Alternative resources Resource 1 1
(alternative modes) are filled.
The resource which allows Resource 2
for the earliest finish date is
selected.
3
Resource 1 1
Resource 2 2
Resource 1 6 3 1
Resource 2 5 4 2
ã SAP AG 2001 Today Time
n During scheduling, the system selects the mode (and the resource) as follows:
In interactive planning as well as in the planning run, the system automatically chooses an
operation for the mode with which it, depending on the planning direction,
- Can start the operation as late as possible (for backward scheduling)
- Can finish the operation as early as possible (for forward scheduling)
- If several modes with different priorities can meet the scheduling criteria, the system chooses
the mode with the highest priority.
During manual scheduling in the DS planning board, an operation is already scheduled in a certain
mode. You can select another mode for the operation by using Drag&Drop to shift the operation
to a resource of another mode. In addition to the modes that can only be scheduled manually with
priority Z, you can also schedule the modes that can be scheduled by the system with priorities A
to O. You can only change the mode in the DS planning board.
n Prerequisite: You have maintained more than one mode for each activity in an operation in the
PPM. You have assigned the same priority to modes that are linked.
(C) SAP AG AP220 3-74

Setup Time Adjustment in Scheduling
Setup times at paint shop Setup times in minutes
Prod. A B C Product A: white color

A 0 10 20 Product B: yellow color
Product C: blue color
B 30 0 15
C 30 25 0
Requirements time A C B A A
Time
Setup Setup
A Setup time C time B time A A
Operations of products A to C in paint shop (scheduling during production planning run)
Optimization run can be started

to reschedule the orders in an sequence optimum for setup
ã SAP AG 2001
n Setup time adjustment: The duration of the setup activity for an operation may depend on the setup
status of the resource at the time of rescheduling, which means it depends on which operation was
processed prior to this at the resource. When scheduling or rescheduling an operation at a single
resource, the system automatically adjusts the duration of the setup activities for the operation to be
scheduled to that of its predecessor.
n Prerequisites:
You have defined a setup matrix (with setup keys or setup groups as setup transitions) in the
PP/DS master data menu.
You enter the setup matrix in the resource you want to use to represent sequence-dependent setup
times (you can only use single resources since setup matrixes cannot be entered in multi-
resources).
If you work with R/3 work centers that have two capacity categories (for example, machine and
labor), you receive two resources in APO. In this case, only enter the setup matrix in the resource
that is only used as the primary resource in the PPM (this is the R/3 work center capacity category
indicated as the scheduling basis), not in the one used as the secondary resource.
• You have maintained the following data in the PPM for operations that are to be setup at the single
resource depending on sequence.
• Setup key or setup group The setup group/setup key in the PPM are copied from the R/3 routing
if they have been maintained there.
• For the operation, you have defined a setup activity (activity type S (setup)) and also set the
Setup activity indicator so that the setup time is read from the setup matrix and not from the
mode. In the case of setup activities for which you do not set the indicator, the system uses the
setup time from the mode, and not from the setup matrix; that is, the duration of the setup
activity is constant and is not dependent on the sequence. An operation may only consist of one
setup activity. If an operation covers several activities, the setup activity must be the first
(C) SAP AG AP220 3-75

activity of the operation. The setup activity may only have one successor activity in the
operation.
(C) SAP AG AP220 3-76

Maintenance of Setup Times that are Dependent on
Sequence in the Setup Matrix
Setup matrix
l Parameters in the setup
Setup Setup Setup matrix:
status 1 status 2 status 3
n Type of setup transition
Setup status n Preceeding setup

1 x $ $
group/key
n Subsequent setup
Setup status
2
$
x $ group/key
n Setup duration
Setup status
3
$
$ x n Setup costs $
l Setup statuses can be setup groups or setup keys, for example,

n Setup key 10 (white)
n Setup key 20 (yellow)
ã SAP AG 2001
n A setup matrix is a matrix that contains, for each possible setup transition at a single resource, the
setup duration and the setup costs that are necessary to change the setup status of the resource to
another setup status.
n In the setup matrix you define all transitions between the various setup statuses of the resource. A
setup status is defined by the setup group or the setup key for the operation being processed at the
resource.
• You use setup groups to define the standard setup transitions at the resource.
• You use setup keys to define the exception setup transitions for a standard setup transition.
n For performance reasons, it is recommended that you define setup matrices that are as small as
possible, with only a few setup transitions. Therefore, you should do the following:
• Maintain the setup statuses using setup groups and setup keys only to a degree of detail that is
necessary
• Use as few exceptional setup transitions as possible
• Use setup groups/setup keys for different operations/products with similar setup times and setup
costs.
(C) SAP AG AP220 3-77

Setup Matrix: R/3 Integration
APO
Report
Customizing: Setup group
Capacity req. plng Setup group 1 Color
Setup group Setup key Description
1
category 10 White
Setup group 20 Yellow
10
key
Setup matrix Setup matrix

Setup matrix PAINT SHOP Paint shop
Location 1000
Setup transitions
Type Predecessor Successor Setup Unit Setup
setup key/group setup key/group duration costs
E * 1 (color) 100 Min
E 10 (white) 10 (white) 1 Min
E 10 (white) 20 (yellow) 10 Min
...
E Exception setup transition
““ Standard setup transition
ã SAP AG 2001
n Completeness of setup matrix: The setup matrix must contain all setup transitions that can occur at
the resource. You do not have to define each setup transition explicitly. Using an asterisk (*), which
you enter in a setup transition instead of a setup group, you can define generic setup transitions in the
setup matrix. However, the asterisk (*) only replaces the setup groups that you also use in the setup
matrix explicitly to define setup transitions, and not all setup groups that you defined for the
location.
• Using the setup groups A, B, C and the setup key a, you have defined the following setup
transitions in the setup matrix: AB, AC, Aa.
• Using a setup transition ** in the setup matrix, you include the following setup transitions: AA,
BA, BB, BC, CA, CB, CC. These are the missing combinations for the setup groups used
explicitly in the setup matrix. If you have also defined the setup groups D, E and F in the location,
the setup transitions with these setup groups are not included when using the generic setup
transition **. You have only explicitly used the setup groups A, B and C in the setup matrix.
• By entering a setup transition *a, you are including the following setup transitions: Ba, Ca. These
are the missing transitions for the setup groups used explicitly in the setup matrix according to
setup key a.
n Initial setup statuses: If, for example, you reschedule an operation in the DS planning board at a
time in which no operation is scheduled in the display period, the setup status of the resource is not
defined for the system since no operation has been processed on it yet. In such cases, you can enter
setup transitions in the setup matrix between an initial setup status for the resource and the possible
setup statuses. You define such transitions by not entering a setup group or a setup key for the
preceding setup status.
(C) SAP AG AP220 3-78

Setup Matrix: R/3 Integration (2)
R/3 Routing PPM Product A APO

Setup group/setup key
Operation 10 Operation 10: Pre-assembly
Activity: Setup
Activity: Production
CIF
Operation 20 Operation 20: Paint 10 (white)
Setup group category: 1
(color) Primary
Activity: Setup W1906_1000_001
Setup group key: 10 resource
Activity: Production W1906_1000_002
(white)
Setup matrix APO Single

W1906_1000_001
matrix
PAINT SHOP resource
Machine cap., paint shop
Manual post- Planning parameters

Customizing Report maintenance
Setup matrix PAINT SHOP
ã SAP AG 2001
n Transfer of setup keys, setup groups, and setup matrices from R/3 Customizing: Setup keys,
setup groups, and setup matrices cannot be transferred from an R/3 System by means of the CIF
interface. You can transfer these objects to another system using the following reports:
/SAPAPO/SETUP_GROUP_COPY (setup groups and setup key),
/SAPAPO/SETUP_MATRIX_COPY (setup matrices).
A prerequisite for transferring them is that the locations for which these objects were created are
available in the target system. This is also true for the plan numbers which you can specify in the
setup matrices for campaigns. These plan numbers must also exist in the target system. You define
the target system by specifying the RFC destination of the system.
n After you have transferred setup data from R/3 Customizing via the special report to APO or have
maintained it manually in APO, you transfer the product masters and resources from R/3 to APO. As
soon as the resources are available in APO, you maintain the setup matrix you want to use in the
resources in the resource master in APO. Note: Setup matrices in the resource master are not
transferred from the R/3 work center since you can only maintain global setup matrices in R/3, but
cannot decide for each work center which setup matrix to use. In the R/3 resources in Process
Industries (PI), you can maintain matrices, however, these are only rough matrices in which you can
define transition times between products, but not between setup conditions. Therefore, the setup
matrices from the R/3 resource master cannot be transferred in PI.
As soon as you have maintained the setup matrix in the APO resource master, you can start to
transfer the R/3 routings. The setup group keys (for example, white) are automatically transferred
from the R/3 routing to the corresponding operation of the APO_PPM. In the APO-PPM, a setup
time is no longer displayed. The setup time in APO is taken dynamically from the setup time matrix
of the resource.
(C) SAP AG AP220 3-79

Einkaufsinfosatz, Lieferplan, Mengen-/Wertkontrakt
l Übertragung aus R/3 an APO:

Ø Einkaufsinfosätze
Ø Lieferpläne
Ø Kontrakte (Mengen- und Wertkontrakte)
l Im APO werden diese Stammdatenobjekte als

Fremdbeschaffungsbeziehung (produktspezifisch) angelegt
Einer Fremdbeschaffungsbeziehung ist automatisch einer
Transportbeziehung zugeordnet
l Prioritäten und Kosten können direkt in der

Transportbeziehung der Fremdbeschaffungsbeziehung
geändert werden
ã SAP AG 2001
n Vom R/3-System übergebene Einkaufsinfosätze, Lieferpläne und Kontrakte (Mengen- und

Wertkontrakt) werden im APO-System als Fremdbeschaffungsbeziehungen erzeugt. Eine
Fremdbeschaffungsbeziehung ist produktspezifisch und wird einer Transportbeziehung zugeordnet.
Transportbeziehungen werden im APO automatisch erzeugt, wenn Sie Daten aus dem R/3-System
übergeben. Die Fremdbeschaffungsbeziehung enthält also die vertraglichen Details der Beziehung
zwischen einer Quellokation (Lieferant oder Werk) und einer Ziellokation (Werk).
n In der Frembeschaffungsbeziehung können Sie Stamm- und Bewegungsdaten von Kontrakten und
Einkaufsinfosätzen anzeigen und pflegen. Zu diesen Daten gehören:
Allgemeine Informationen wie z.B. Beschaffungsart, Belegnummer, Lieferant usw.
Einstellungen wie z.B. geplante Lieferzeit und, ob die Beschaffungsbeziehung aktiv oder nicht
aktiv ist. Die Beschaffungsbeziehung muß als aktiv eingestellt sein, wenn sie bei der Planung
verwendet werden soll.
Daten auf den zugeordneten Transportbeziehungen: Sie können die Priorität und die Kosten für die
Transportbeziehung in der Pflege für die Fremdbeschaffungsbeziehung ändern. Priorität und
Kosten der Transportbeziehungen werden bei der Ermittlung einer Bezugsquelle berücksichtigt.
Sie können Transportbeziehungen sperren, wenn Sie Lieferungen von einem bestimmten
Lieferanten für einen bestimmten Zeitraum untersagen möchten.
Sie können auch die Kosten des aus dem R/3-System übertragenen Kontrakts oder
Einkaufsinfosatzes anzeigen. Sie können die fixen und variablen Kosten für eine Minimumanzahl
von Einheiten überprüfen.
(C) SAP AG AP220 3-80

Fremdbeschaffungsbeziehung und
Transportbeziehung
R/3-System
Lieferplan
Lieferant: Müller
Laufzeit:
01.01.2000 - 31.12.2000
Pos. Material Menge Werk

10 Schraube-01 10.000 KI München
APO-System
Lieferplan im
R/3-System Lieferant Müller
Produkt
Schraube-01
Transportbeziehung Werk München
Fremdbeschaffungsbeziehung Transportbeziehung
ã SAP AG 2001
n Die Fremdbeschaffungsbeziehung gehört zu den Stammdaten im APO. Sie bildet

Einkaufsinfosätze, Kontrakte und Lieferpläne aus Ihrem R/3-System in Ihrem APO-System ab und
stellt alle für die Planung der Materialbeschaffung notwendigen Daten zur Verfügung.
Fremdbeschaffungsbeziehungen können für folgende Beschaffungsformen existieren: normal,
Lohnbearbeitung, Konsignation
n Die Transportbeziehung stellt die Geschäftsbeziehung zwischen einer Quelllokation (z.B. einem
Lieferanten) und einer Ziellokation (z.B. einem Werk) dar und ist als Linie im Supply Chain
Engineer zu sehen. Die Fremdbeschaffungsbeziehung ist direkt mit der Transportbeziehung
verknüpft und erweitert die Informationen der Transportbeziehung, indem sie z.B. eine Verbindung
zu einem konkreten Kontrakt herstellt, der in Ihrem R/3-System für die Quelllokation und die
Ziellokation existiert. Aus der Fremdbeschaffungsbeziehung können Sie auch direkt in die
Transportbeziehung verzweigen, um deren Daten zu pflegen.
n Nicht mehr benötigte Bezugsquellen: Wenn im APO-System z.B. eine bestimmte Lieferplanposition
nicht mehr gebraucht wird, dann können Sie die Fremdbeschaffungsbeziehung zu dieser
Lieferplanposition deaktivieren, indem Sie im R/3 das Löschkennzeichen für diese
Lieferplanposition setzen. Dieses Löschkennzeichen wird dann an das APO-System übertragen.
n Hinweis: In einem R/3-System können Sie Kontrakte (Zentralkontrakte) und Einkaufsinfosätze
werksübergreifend verwenden, indem Sie kein Werk zuordnen. Wenn Sie einen solchen
Zentralkontrakt oder werksübergreifenden Einkaufsinfosatz an Ihr APO-System übertragen, dann
wird für jedes Werk der entsprechenden Einkaufsorganisation, das in Ihrem APO-System vorhanden
ist, eine Fremdbeschaffungsbeziehung angelegt.
(C) SAP AG AP220 3-81

Scheduling and Resource Load for Externally
Procured Products: Step 1
Requirements date,
component
Planned delivery time: scheduling
via calendar to delivery location (infinite) Scheduling step 1 (infinite)
GR processing time: scheduling using handling resource in location

master (infinite)
Switch to forward
scheduling
Planned delivery time
GR processing time
Today Time
The planned delivery time of a product is the total delivery time of a product (including good issue
times, production times at supplier) required by a supplier.
ã SAP AG 2001
n Scheduling of externally procured products: The goods receipt processing time as well as the
planned delivery time are subtracted from the requirements date. Scheduling step 1:
n The planned delivery time is the supplier's delivery time for a certain product.
In APO, the planned delivery time is scheduled via the production calendar of the supplier location
(this may, for example, take the plant vacation dates of the supplier into account). If the supplier
has not maintained a production calendar, the planned delivery time is assumed to be in calendar
days, just as in R/3 (Gregorian calendar, Monday to Sunday).
The planned delivery time can be maintained in the external procurement relationships
(purchasing info records, contracts, scheduling agreement), transferred from R/3. If no entry has
been made or zero has been entered there, the planned delivery time is taken from the product
master (transferred from R/3).
The planned delivery time is no longer considered once the order has been created. If the date is
changed manually and causes the planned delivery time to be is violated, an Alert is displayed.
n The goods receipt processing time is the time between the delivery of a product and its availability
as warehouse stock. This time is used, for example, for load transfer time or quality control.
Note: To allow the goods receipt to be planned for PP/DS, a handling resource with which the goods
receipt processing time can be scheduled must be defined in the location.
For a goods receipt in Supply Network Planning, one day is 24 hours. In PP/DS, one day is 24
working hours. This means that a handling resource must be available 24 hours a day for the goods
receipt to actually take only one day. If the availability of the resource is less than 24 hourse (for
example, because of breaks), a one-day goods receipt processing time can be distributed over several
days. Therefore, the handling resource entered in the location can or is to be defined as an infinite
multi-resouce with 24 hours of operating time.
(C) SAP AG AP220 3-82

Procured Products: Step 2
Planned delivery time (from externally procured relationship)

Scheduling result,
step1 (infinite scheduling)
GR processing time
Operations order in delivery location
Delivery time (from transportation lane)
Scheduling, step 2
10 20
(finite scheduling is possible!)
GI processing GR processing time: via handling resource in location master
time (finite possible)
Capacity for operation 20 occupied at supplier
Switch to forward
Availability date, component
scheduling
10 20
Today Time
ã SAP AG 2001
n Scheduling, step 2: The activities goods receipt in the plant, transportation, goods issue at supplier
(or other plant) as well as perhaps the operations at the supplier (supplier PPM) are scheduled.
Either the planning calendar or the resources are used to schedule:
If the resources are used to schedule (handling resources from location), the same scheduling
functions are used that are used in in-house production. This allows limited capacities to be taken
into account in scheduling (for goods receipt processes in the plant as well as goods issue
processes at the supplier, if desired). Each resource has an available time and available capacity.
The system uses this information to determine the dates and move the orders while taking the
working times and capacities into account during planning.
Resources are used to schedule if a resource is entered in the Handling resource inbound (for GR)
or Handling resource outbound (for GI) fields in the location of a resource.
If the planning calendar in the supplier location is used to schedule, the activities are fixed
(there is no fixing of the order quantity in the order header, but rather an activity fixing). A
production planning run can delete such orders and create them on a different desired date. When
you move orders to assembly level, however, the Consider Pegging strategy does not allow the
system to consider that purchase requisitions linked to dependent requirements are also to be
automatically moved; this keeps activities from being moved to non-working times during
planning. This type of scheduling restricts planning. To allow the planning function as much
flexibility as possible, you should schedule using resources.
You use the planning calendar to schedule if no resource has been entered in the location.
Note on stock transfers from different plants: At this time, the transportation lanes as well as the
delivery times must be maintained manually in APO for stock transfers between plants.
Products do not have to be created at the supplier (exception: when working with supplier PPMs
or subcontracting).
Dispatch calendar:
(C) SAP AG AP220 3-83

Procured Products: Restrictions
ã SAP AG 2001
n Resource load: All resoruces types can be used: Single resources, multi-resources, bucket resources,
single-mixed resources, multi-mixed resources. Goods receipts, transportation, and goods issues can
consume bucket capacity along with duration.
n The system calculates the bucket consumption from the following sources:
• Goods receipt: The bucket consumption comes from the location-dependent material master, the
resource from the location.
• Transportation duration: The bucket consumption comes from the product-dependent
transportation mode.
• Goods issue: The bucket consumption comes from the location-dependent material master, the
resource from the location.
n The bucket consumption, which can be maintained in the product master or transportation lanes,
always refers to a base unit of measure. If the available capacity of the resource is maintained in a
unit other than the base unit of measure of the product (for example, Kg instead of pieces), a
conversion factor must be defined in the product master.
n The resource consumption for multi-resources or multi-mixed resources is always one.
(C) SAP AG AP220 3-84

Planning: Summary
l Simultaneous material and capacity requirements

planning in the production planning run
l Heuristics
l Steps in the production planning run (net
requirements calculation, lot-size calculation,
procurement type, PPM explosion, scheduling)
ã SAP AG 2001
(C) SAP AG AP220 3-85

Simultaneous Material and Capacity Requirements Planning -
Exercises
Unit: Simultaneous Material and Capacity

Requirements Planning (dynamic pegging)

• explain the function of simultaneous material and capacity
requirements planning
In your plant 1000 in Hamburg, pumps are assembled specifically

for a sales order. After planned independent requirements are
entered, you must create a production and supply plan for the
pump and its components. This plan is created through a
production planning run.
1-1 Enter planned independent requirements

for material T-F2## in the R/3 system for plant
1000 (Hamburg production plant) (## should
be replaced by your group number). Proceed
as follows:
(C) SAP AG AP220 3-86

tomorrow next Wednesday Wednesday Wednesday
Wednesday in a week in two in three
weeks weeks
5 5 5 5 5
1-1-1 Enter the

independent
requirements for
material T-F2##
in plant 1000 in
the R/3 program
planning. Select
the day schedule
line as the period
schedule line by
entering indicator
T (day format) in
the planning
period field in
the initial screen
of the
transaction.
Enter the
following
independent
requirements for
pump T-F2## in
plant 1000:
(C) SAP AG AP220 3-87

1-3Save
Now your
entries.
recheck the earliest or latest dates
for the planned order for the final assembly
Note: For training
(pump T-F2##)
purposes, the and assembly production
(hollow
planned shaft T-B3##).
independent
requirement may
Note
alsothe start and end dates of the first
be created
directly in the
planned
APO product orders for the pump T-F2## and the
view by entering
hollow shaft T-B3##. Enter this in the
a negative
following
quantity. graphic:
However, this
should not occur
Planned order
here; planned Planned order
independent
Pump T-F2##
1-4-1 Leave
requirements
the
that
product view and
Hollow shaft
are created
select the menu T-B3#
in
APO are not also
path for the
automatically
production
visible in R/3.
planning run. In
Planned
the production
independent
planning run,
requirements that
schedule all
are created in
products in plant
As R/3
you
1000
are,saw above, a sufficient quantity of
for which
however, also
blanks is already
the production
visible directly in available for the hollow
planner is
shaft.
APO. Thus production of the hollow shaft
intended.
(planned order T-B3##) begins on the today
In the production
lineplanning
(today’s
1-2
run date). The system has therefore
menu selectViewthe
switched
following the from backward scheduling from the
dependent
variants: plannedrequirements deadline to forward
indepen
SAP_MRP_001.
scheduling. dent However, the system has not
only After requirem to forward planning for the
switched
selecting
ents for
the variants,
hollow choose shaft,
pump T- but also for the pump. Thus, the
the
F2## in
final assembly
Selection
location
criteria button.
planned order is delayed, as
reported1000 by an exception message in the final
(Hambur
assembly Nowplanned order.
g
select
Note: Scheduling producti
the for planned orders in the
on plant)
future
(C) SAP AG
would
following also be AP220
in the possible over two stages
3-88
values:
if there had APO not been sufficient stock for the
Field Value
Product
Location 1000
Production planner 0##
Marked for planning X
(C) SAP AG AP220 3-89

Choose
Execute
.
1-5 Now
view the
planning
situation for
the APO
product T-
F2## in
location
1000
(Hamburg
production
plant) in the
APO
product
view.
Consider
the
component
list for the
planned
order for
product T-
F2## and
check the
requiremen
ts/receipts
situation for
all
component
s.
Were all
component
s
scheduled
in the
planning?
_________
_________
_________
_________
_________
(C) SAP AG ________ AP220 3-90
Exercises


• evaluate the pegging functions
Once you have carried out the planning run for your plant 1000 in
Hamburg, you should evaluate the dynamic pegging.
(C) SAP AG AP220 3-91

2-1
Now
check
the
pegging
structure
for one
of your
planned
orders.
To do
this,
view the
planning
situation
for pump
T-F2##
in
location
1000
(Hambur
g
producti
on plant)
in the
APO
product
view.
2-1-1
Double-click
on the last
planned order for
pump T-F2##. In
the following
order tree (on the
left side) double
click on the
product number
Pump T-F2##.
Is this planned
order pegged
with a demand?
View the Pegging
structure for the
order in the
Pegging
structure tab
(C) SAP AG AP220 3-92
page.
Optional exercise (not part of the standard course – can
be completed by the participants after the end of the
course)Unit: Simultaneous Material and Capacity
Requirements Planning (scheduling)

• evaluate the pegging functions
Hamburg, you should evaluate the dynamic pegging.
(C) SAP AG AP220 3-93

3-1
Test
the
simultan
eous
quantity
and
capacity
requirem
ents
planning
by
creating
a new
planned
order
and by
using
finite
planning
as the
scheduli
ng mode
(find
slot).
3-1-1 Then
check the
scheduling
details for the
second planned
order for pump T-
F2## in plant
1000 in the APO
product view.
Which operations
are carried out in
the planned
order on which
resources?
When are they
carried out?
Paste the data
into the table
below
To view the
resource
start/end times
(C) SAP AG AP220 3-94
for the
operations,
Operatn. Operation Resource Start End
description date/time date/time
(C) SAP AG AP220 3-95

10
20
30
40
50
60
The resources on
which operations
30 to 60 are
carried out are
defined as finite
resources in the
resource master.
The resource, on
which the output
is assigned in the
PPM, can be
directly viewed in
a column of the
items list in the
product view.
Create the new

planned order in
the APO product
view for the end
product pump T-
F2## by
choosing the
create order
button in the
product view.
Enter a time as
the
(C) SAP AGavailability AP220 3-96
date, which lies
10 minutes
Simultaneous Material and Capacity Requirements Planning -
Solutions

Requirements Planning
1-1
1-1-1 R/3 Menu path: Logistics → Production → Production planning →

Demand Management → Planned independent requirement → Create
directly in APO.
1-2 APO Menu path: Production planning → Interactive production planning →

Product view
1-2-1 Why have planned orders for the planned independent requirement for the
pump already been created?
Since “automatic planning immediately” is defined on the PP/DS tab for
product T-F2## in the product master, single level planning is triggered
automatically when a new requirement is entered.
1-2-2 When is the start and end of the planned order for the final assembly of
pump T-F2##?
Take the deadlines from the planned order header.
How many operations have been scheduled on the various resources in the
planned order?
In total, the six different operations from the PPM have been scheduled in
the planned order.
Which assemblies (including dependent requirements) are contained in the

planned order for pump T-F2##?
The planned order for the pumps contains components T-B1##, T-B22##, T-
B3## and T-B4##.
Have components T-B1## (casing), T-B22## (fly wheel), T-B3## (hollow

shaft) and T-B4## (electronic turbodrive) also been planned automatically
and immediately? Are there any alerts for the components of the planned
order?
Only the dependent requirements for the hollow shaft were planned
(C) SAP AG AP220 3-97

immediately, the other dependent requirements were not planned. However,
these are partly covered by storage location stock.
1-2-3 Why were planned orders already created for the dependent requirements
for product T-B3## (hollow shaft)?
The dependent requirements for the hollow shaft were planned immediately
since product T-B3## (hollow shaft) is also set to “automatic planning
immediately” in the APO product master.
1-2-4 Which assemblies (including dependent requirements) are contained in the

planned order for hollow shaft T-B3##?
Component T-T4## (blank for shaft) is contained in the planned order for
the hollow shaft.
Has component T-T4## (blank for shaft) also been planned automatically
and immediately?
The externally procured product T-T4## (blank for shaft) is not defined in
the APO product master with “automatic planning immediately”. Since all
dependent requirements for the blank are covered by the inventory level,
external procurement for the blank is not triggered.
1-3
1-4
1-4-1 APO Menu path: Production planning → Automated Production Planning
and Optimization → Production planning run

Product view
Have all components in the plan been scheduled?

All components which were not directly planned through “automatic planning
immediately” have now also been planned.
(C) SAP AG AP220 3-98

Program planning Solutions


Product view
2-1-1 Is this planned order pegged with a demand?
The planned order is pegged with the planned independent requirement.
Is there dynamic or fixed pegging? With which demand is the planned order
pegged?
There is dynamic pegging.
2-1-2
2-1-3 Do new alerts appear online? Which alert appears? Why does the new alert
appear?
Alerts now appear which signal a “surplus” of the product, as the planned
order quantity exceeds the requirements quantity.
2-1-4
Now investigate whether pegging links are based only on planned orders or also
based on stock.
To do this access the APO product view again for product T-B1## (casing).
In the order tree (on the left side) double click on product number Pump T-
B1##.
Is the stock for assembly T-B1## (casing) pegged with a requirement?

The stock is pegged with the dependent requirement.
Is there a dynamic or fixed pegging? With which demand is the stock

pegged?
There is dynamic pegging.
(C) SAP AG AP220 3-99

Program planning Solutions

can be completed by the participants after the course
has finished)
Requirements Planning (scheduling)

Product view
3-1-1 Why didn’t the system schedule the planned order at the time you entered?
To find a possible solution check whether another planned order is
occupying the resources at this time (see table above).
The system did not create the planned order at the time specified as the
resources were already busy at this time. Since the resources (on which the
last work operation will be carried out) are finite, the system searches for a
gap when the capacity on the resources is free.
Which scheduling strategy did you use for scheduling the planned orders?
Planning direction: Backwards and reverse

Scheduling mode: find slot
3-2 Demo by instructor (course participants finish the exercise here). APO Menu path:
Production planning → Interactive production planning → Product view
3-2-1 Why did the system schedule the planned order at the time you entered (in
the participant exercise the system scheduled the planned order earlier)?
Because infinite planning was selected in the strategy, the system has
scheduled the planned order at the desired deadline even though there is no
free capacity.
Which resource alerts can be seen in the planned order header?

The system has created resource overload alerts.
(C) SAP AG AP220 3-100

Contents:
l Product View
l Product Planning Table
l Reporting and Planning Options in the Product View and
Product Planning Table
ã SAP AG 2001

The Production Planner's Tools: Unit Objectives

ã SAP AG 2001

1 Course Overview

2 Products

ã SAP AG 2001


l The production planner must become familiar with
the planning tools in the SAP System
ã SAP AG 2001

Product View: Display of the Current
Stock/Requirements Situation
Date Category Quantity Surplus Available quantity
Planning segment for make-to-stock production

Nov. 16 Stock 100 0 100
Date Planned order 50 0 150
Date l Plnd ind. reqmts 150 0 0
l
l
Planning segment for make-to-order production, sales order XYZ

Nov. 16 Stock 0 0 0
Date Sales order 150 150- 150-
Receipt Issue
l Requirements elements: sales
l Receipt elements: planned
orders, planned independent
orders, production orders,
requirements, dependent
purchase requisitions ...
requirements ...
l Quantity, surplus and shortfall

l Alert status
ã SAP AG 2001
n The product view is a current overview of the stock, the receipts, and the requirements for a product
in a specific location for a specific planning version.
n The system reads the information every time the product view is called up.
n Target/source: The other location from which, for example, the stock is transferred, depends on the
order category. In the case of purchase orders it is the supplier, for sales orders it is the customer, and
for stock transport orders it is the other location to/from which you are transferring stock.
n A quantity alert appears on the stock/requirements list in the case of product availability violations.
When interpreting alerts, you must distinguish between product receipts and product requirements
since the alerts have different meanings.
n In the case of product receipts: A green traffic light means that the total quantity of the product
receipt is being used for requirements (no surplus), and a yellow traffic light means that there is
surplus for the product receipt.
n In the case of product issues: A green light means that there are no quantity violations (no shortfall).
A red light means that there is a quantity violation (shortfall).

Period-Based Planning in the Product Planning
Table
9/4/2003003 In this section, you can

Resource view: periodic 5.9.2001
monitor capacity load
Resource 1 % 0 100 50utilization at resources
Requirement H 0 16 8
Avail. cap. H 16 16 16 Pegged reqmts
Resource 2 % 0 0 100 display:
Requirement H 0 0 16 Product A: 8 H
Avail. cap. H 16 16 16 Product B: 16 H
Product view: periodic 9/9/2003 9/4/2003 5.9.2001

In this section, you can
schedule quantities
at resources
Material A PC 100 100
Requirements PC 200 200 200
Available quantity
Production res. 1 100 50
PC
Production res. 2 50
PC
Material B
ã SAP AG 2001
n The planner uses the product planning table to maintain the production plan (transaction:
/SAPAPO/PPT1). The planner can check the production quantities all at one time and make changes
or create new production quantities if necessary. The planner can determine the current capacity load
utilization of the resouces as well as the availability situation of the products. Furthermore, a pegged
capacity check can be performed.

Product Planning Table:
Characteristics and Use
l Instrument for period-based, bucket-based planning

n Periodic product view, resource view, and resource-product
view
l Integration of other tools

n Individual product view, individual order view, Alert Monitor,
detailed scheduling planning board, planning monitor
l Flexible user interface and simple navigation through the

supply chain via tree
n User-specific saving function
n New selection function
l Various functions for finite planning
n Manual planning, starting planning heuristics, starting the
PP/DS optimizer
ã SAP AG 2001
n You can use the report /SAPAPO/PT_DELETE_USER to delete your user settings.
n You can add additional customer screens by making entries in the table /SAPAPO/PT_FRDYN in
the product planning table. To display additional lines in the Periodic Product View, you can use
BADI /SAPAPO/PPT_INFROW.

Product Planning Table: Navigation Tree
Navigation
tree
Grouping by:
• Planner
• Product group
• Location
• Resource
• Source
• Goal
Subnodes for:
• Make-to-order
• Bill of material
ã SAP AG 2001

Product Planning Table: Layout Tree
Layout Tree
Selection of
subscreens:
• Product grid
• Resource grid
• Resource-prod. grid
• Individual prod. view
• Individual order view
• Alert Monitor
• Graph. plan. board
• Quantity graphic
• Days' supply graphic
• Planning monitor
ã SAP AG 2001

Product Planning Table: Product Grid
Product grid
For each
product, lines
for:
• Available quantity
• Day´s supply
• Receipts
• Requirements
• Planning
• Detailed
• Aggregated
ã SAP AG 2001
(C) SAP AG AP220 4-10

Product Planning Table: Resource-Product Grid
Resource-
product grid
For each
resource:
• Load in percent
• Orders sorted by
products
ã SAP AG 2001
(C) SAP AG AP220 4-11

Product Planning Table: Integration Alert Monitor
Alert Monitor
• Order alerts
• Resource alerts
• Days' supply
alerts
Link to navigation
ã SAP AG 2001
(C) SAP AG AP220 4-12

Product Planning Table: Quantity Chart
Quantity chart for

each product
ã SAP AG 2001
(C) SAP AG AP220 4-13

Day´s Supply
Stock
100
80
40
10
Mo Tu We Th Time
20 40 30 30 -20
Requirement
Day´s
Day´s supply
supply 3.3
3.3 days
days
l Days' supply reporting in the production planner's tools
ã SAP AG 2001
n Use: To avoid product shortages, the planer can use days' supply to determine how long stock and
receipts can cover the requirements and then act accordingly. The days' supply in APO shows the
number of calendar days until the stock goes below zero.
n Since the days' supply can be calculated individually for each pegging area, it may be that there are
several days' supplies for the same product in the same location and the same planning version
because there are different account assignment objects. How the days' supply is displayed depends
on where you call it.
In the product view, a value is displayed for each of the days' supply types (maximum three). The
days' supply of the pegging area with the lowest days' supply is displayed. Only one minimum
days' supply alert is displayed for this pegging area. Alerts as well as the days' supplies calculated
for other pegging areas can only be displayed in the Alert Monitor.
In the Alert Monitor, you can display all alerts for all pegging areas of a product. Along with the
values defined as the minimum days' supply, the days' supply calculated for each pegging area is
also displayed. On the initial screen of the Alert Monitor, you can branch to profile maintenance,
where you can overwrite the days' supply types to be calculated according to your settings in
Customizing.
n Prerequisites:
You have defined days' supply types and the minimum days supply in Customizing for Production
Planning and Detailed Scheduling.
You have entered the days' supply types that the system is to calculate in Customizing for Supply
Chain Planning under Global Parameters and Default Values.
(C) SAP AG AP220 4-14

Definition of Days' Supply Types
Category
CB (safety stock)
CC (unrestricted use)
... Category list Customizing PP/DS
Stock
Receipt Days' supply types
AY (dependent requirements) Requirement SAP1 Days' supply
BM (sales order) Forecast SAP2 Receipt days' supply
...
FA (plnd ind. reqmts)

...
l You can define different days’ supply types in APO Customizing
ã SAP AG 2001
n To calculate the days' supply, you can specify in Customizing exactly which stock and receipt
categories are to be compared with which forecast and requirements categories. These are called
days' supply types. The system can calculate up to three different days' supply types. Since there is
more than one days' supply type, the planner can compare the effects that different categories have
on product availability and check if action is necessary.
n There are two standard days' supply types you can copy if you want to create new days' supply types:
SAP1 (contains all of the stock as well as all of the requirements and forecasts that are currently
defined in the R/3 System)
SAP2 (contains all of the stock as well as all of the receipts, requirements and forecasts that are
currently defined in the R/3 System)
n You can copy the standard days' supply types and then delete the categories that you do not want to
include in the days' supply calculation.
n When you call the product view or the Alert Monitor, the days' supply for each pegging area is
calculated as follows: days' supply = (stock + receipts) / (stock + forecast)
n Which receipt or issue elements are taken into account depends on the categories you have defined
for the days' supply in Customizing for Production Planning and Detailed Scheduling.
(C) SAP AG AP220 4-15

Definition of Minimum Days' Supply
Tools Definition of min. days’ supply Customizing PP/DS

Product view Error mess. 5
Days' supply types
Warning 10
SAP1 Days' supply
Information 20
Product planning SAP2 Receipt days' supply
table User exit
l For shortfall of
l
l minimum days'
supply
l Definition of minimum days' supply is possible: for shortfalls, exception

messages (alerts) are triggered with different priorities
ã SAP AG 2001
n Minimum days' supply: Value that triggers alerts in Production Planning and Detailed Scheduling
to make the planner aware of critical situations concerning product availability. You can define up to
three values (in calendar days) for the days' supply in Customizing for Productions Planning and
Detailed Scheduling. The value should give you enough time to react to the problem and avoid a
product shortfall.
n The system automatically calculates the days' supply when you call the Alert Monitor or the product
view. The calculated days' supply is compared with the values you entered as the minimum days'
supply. As soon as the days' supply drops below one of these values, an alert is generated. Different
priorities are assigned to the values that trigger different alerts:
Error: This alert has the highest priority. You enter the lowest number in calendar days that still
allows you to react in time to avoid a product shortfall. For a product with a replenishment lead
time of 4 days, for example, you could enter 5 days as the absolute minimum days' supply.
Warning: This alert has medium priority. The number of calendar days entered should be higher
than for the error alert. This gives you more time to react (in the example above, for example, 10
days).
Info: This alert has the lowest priority. The number of calendar days you enter should be higher
than for both of the other alerts.
n When determining a days' supply type, you can also define a user exit for the minimum days' supply
to, for example, allow different miniumum days' supplies to be defined for certain products. The
definition of the user exit overwrites the values for the minimum days' supply. For more information,
see the document on user exit APOCV001.
(C) SAP AG AP220 4-16

The Production Planner's Tools: Summary
l Product View
l Product Planning Table
l Reporting and Planning Options in the Product
View and Product Planning Table
ã SAP AG 2001
(C) SAP AG AP220 4-17

Werkzeuge des Produktionsplaners - Exercises
Unit: The Production Planner's Tools

• evaluate the planning results in the APO product view.
After carrying out the planning for your plant 1000 in Hamburg,
you now check the planning results in the APO product view.
1-1 Now view the planning results from the

last exercise in the APO product view for
product T-F2## in plant 1000.
(C) SAP AG AP220 4-18

1-1-1 What is the
calculated days’
supply and
receipt days’
supply for
product T-F2##?
How has it been
calculated? Why
do you get a
warning
displayed with a
“!” close to the
field day’s
supply?
______________
______________
______________
___________
1-1-2 Change the

Time Zone for
the display of
orders:
Se
tti
ng
s
à
Ti
m
e
Zo
ne
C
ha
ng
e
th
e
di
sp
la
y
to
ti
m
e
(C) SAP AG zo AP220 4-19
ne
of
Werkzeuge des Produktionsplaners - Solutions
Unit: The Production Planner's Tools

Product View
(C) SAP AG AP220 4-20

1-1-1 What is the
calculated days’
Settings à Time Zone
supply and
receipt days’ Change the display to time zone of location.
supply for Choose Save.
product T-F2##?
How has it been 1-1-3 Now view the pump casing planning results by
calculated? Why going back to product view in plant 1000 with
do you get a product number T-B1##.
warning How many casings are there in the warehouse?
At which storage location can the stock be
displayed with a found?
“!” close to the
field day’s ______________________________________
supply? _______________
Take the days’
supply from the 1-2 APO Menu path: Production Planning → Interactive
“days’ supply”, Production Planning → Product Planning Table
and “receipt
days’ supply”
fields.
The days’ supply
takes the actual
stock into
account and
searches for the
first requirement.
In the IMG
activity
(Customizing)
Advanced
Planner and
Optimizer (APO)
→ Supply Chain
Planning →
Production
Planning and
Detailed
Scheduling
(PP/DS) →
Order View →
Maintain Days’
Supply Types
are given for the
SAP1 days’
supply type
(days’ supply) in
the field
Minimum days’
supply: Error 5
(C) SAP AG AP220 4-21
days. The
number of
calendar days
The Production Scheduler's Tools
Contents:
l Handling in the Detailed Scheduling Planning Board

l Functions/Heuristics of the Detailed Scheduling
Planning Board
ã SAP AG 2001

The Production Scheduler's Tools: Unit Objectives
At the conclusion of this unit, you will be able to
l Use the DS planning board

l Describe the functions/heuristics of the DS
planning board
ã SAP AG 2001

1 Course Overview

2 Products

ã SAP AG 2001

The Production Scheduler's Tools: Business
Scenario

l The production scheduler must become familiar
with the planning tools in the SAP System
ã SAP AG 2001

Detailed Scheduling Planning Board
Table area Diagram area
Column Resource chart

heading Res.
Short
03/15/1999 03/16/1999
Res. descrip-
type tion
22 00 02 04 06 08 10 12 14 16 18 20 22 00 02 04 06 08
Res01 P Loc 01
Lines Res02 P Loc 01

Res03 P Loc 02
Order Chart
03/15/1999 03/16/1999
OrderNo Products
22 00 02 04 06 08 10 12 14 16 18 20 22 00 02 04 06 08
Chart objects
000001294 P
000001335 P
000001357 P
Product histogram
03/15/1999 03/16/1999
Product
22 00 02 04 06 08 10 12 14 16 18 20 22 00 02 04 06 08
300
Product 01 200 Different
100
Order No: 000001294 charts
Graphical object
Message bar (operation, order)
ã SAP AG 2001
n Schedules are displayed graphically in the planning board.

n The planning board is used for interactive planning, for example, for interactive processing and
dealing with Alerts.
n You can call the planning board directly from the Production Planning/Detailed Scheduling menu or
from order processing.
n You can define the layout of the planning board, for example:
The different charts (such as a resource chart and an order chart):
The field selection and sorting for the columns in the table section of a chart
The format of the rows in the table section
The objects displayed in the diagram section of a chart, for example:
- Operations or orders (graphical objects)
- Histograms (product stock curves or resource load curves)
- Network views of operations and orders that display the time and pegging relationships between
operations and orders
The layout of operations and orders in the diagram section.

Planning Table: Navigation
l Zoom in, zoom out

l Print charts
l Navigation with the left/right mouse button in certain screen
areas:
n Find objects on the time scale
n Change time scale (day, month, week,..)
n Select objects
n Highlight orders and their resource load in color
n Expand / hide multiple loading
ã SAP AG 2001
n For more detailed information on navigation in the DS planning board, see the application help.

Planning Table: Functions (1)
l Reschedule operations and orders manually (Drag&Drop):

n Date changes
n Rescheduling to alternative resources
l Display / change master data, orders and operations
l Load alternative resources
l Deallocate orders
ã SAP AG 2001
n In the planning table, you can reschedule operations and orders manually using drag and drop.
n You can change the planning situation with: change resources (such as capacity, work times),
change orders (quantities, dates).
n You can load the alternative resources for selected operations or orders from the production process
model to the planning board. You can then reschedule operations to the alternative resources.
n Deallocate orders: You can use this function to deallocate operations or orders, that is, remove them
from the resource schedule. After deallocation, the operations or orders are assigned the status
deallocated, but still retain their dates. You set this function, for example, if you want to specify the
production dates of operations for important orders first, and then later schedule the operations for
less important orders.

Planning Board: Functions (2)
l Fix operations and orders

l Undo fix
ã SAP AG 2001
n Fix operations, orders, and time intervals: Fixed objects can only be rescheduled manually using
drag and drop.
• Fix operations or orders: You cannot reschedule fixed operations or orders. (By fixing an order,
you fix all operations in that order)
• Fix time intervals for resources: You cannot change the schedule in fixed time intervals, that is,
operations that lie completely or partially within a fixed time interval are fixed. You cannot
schedule operations in fixed time intervals. This function is not available in the production
planning run.
During optimization, the system also considers whether the operations, orders or time intervals are
fixed.
n Using Undo fix, you remove selected operations or orders from the resource.
n Operations that cannot be rescheduled: You cannot perform rescheduling for the following
operations:
• Operations that have been finally confirmed
• Operations that have been started or partially confirmed: You can only reschedule operations that
have been started or partially confirmed after you have interrupted the operations in the detailed
scheduling planning board.
• Operations that you fixed in the production planning run or in the DS planning board
• Operations that are scheduled in non-working times: The system automatically fixes operations
that are scheduled in non-working times.
• If you want to reschedule operations that you have either fixed or scheduled in non-working times,
you must undo the fix for these operations in the detailed scheduling planning board.

Planning Board: Functions (3)
l Alert Monitor
l Resource load
l Product stock
l Network view - orders / operations
l Evaluation lists
n Operation list
n Order alert list
n Production overview
n Detailed scheduling strategies
ã SAP AG 2001
n The Alert Monitor displays scheduling problems that occur during scheduling; for example, resource
overload or delivery date exceeded. In the Alert Monitor profile, you define for which categories of
alert, that is, for which scheduling problems alerts should be displayed.
n For the resource load, the product stock and the network views you can define static charts that are
displayed permanently in the planning board, or dynamic charts, that you can display or hide in the
planning board.
n In an operation list, all the operations within the evaluation period that are scheduled at the selected
resources are listed.
n In an order alert list, all alerts for orders that are scheduled at the selected resources are listed.
n In a production overview, the quantities and status of selected products are listed, for example, which
quantities of a product have been released or confirmed.
n Detailed scheduling strategies: You use the detailed scheduling strategy to specify which rules the
system uses to schedule or reschedule orders and operations, and which scheduling constraints (for
example, product and resource availability) it considers when doing this.
Additional operations may be affected by the scheduling or rescheduling of an operation that you
have selected for planning. The system must also reschedule these operations so that the schedule
remains consistent. Rescheduling an order can therefore trigger a chain reactions of further
rescheduling.

Strategy: Do not Consider Dynamic Pegging
50 50 50 50
50
30 20
50 80 20
ALERTS:
- Material shortage
- Sequence in dynamic
pegging violated
ã SAP AG 2001
n Pegging relationships between activities: Pegging relationships can exist between the activities of
different orders. An activity produces a material which then undergoes further processing by an
activity of another order. The pegging relationship requires with a certain time tolerance that the
material be available at the right time, that is, that the supplying activity is scheduled at the
appropriate time.
In the strategy profile, you can specify whether the system considers pegging relationships.
Prerequisite: If the system is to consider pegging relationships, you also have to set the detailed
scheduling strategy so it considers the time relationships between the operations in an order.
n Dynamic pegging not considered strategy: The APO System does not consider the dynamic
pegging relationships to other orders when rescheduling. The order is rescheduled, but the
corresponding receipt element is not rescheduled with it. This could lead to a product availability
violation.
n The APO System creates alerts in the case of material deficits, if you have defined this in the Alert
Monitor.
(C) SAP AG AP220 5-10

Strategy: Consider Dynamic Pegging within the
Propagation Range
50 50 50 50
50 30
20
50 50 80 20
ã SAP AG 2001
n The system only performs scheduling or rescheduling if it can also reschedule the operations for
which pegging relationships exist within the propagation range in such a way that no pegging
relationships are violated. The system does not consider dynamic pegging relationships to operations
outside the propagation range.
(C) SAP AG AP220 5-11

Strategy: Do not Consider Fixed Pegging
50 50 50 50
50 30
20
Fixed
pegging edge
50 80 20
ALERTS:
- Material shortage
- Sequence in fixed pegging
violated
ã SAP AG 2001
n Do not consider fixed pegging: The system does not consider the fixed relationships to other orders
when rescheduling. The corresponding receipt element is not rescheduled, which could lead to a
product availability violation.
n The APO System creates alerts for product deficits if you have defined this in the Alert Monitor.
(C) SAP AG AP220 5-12

Strategy: Consider Fixed Pegging
Fixed 50 50 50 50
pegging edge
50 30
20
50 50 80 20
The system only reschedules the order

that causes the requirement if it can
reschedule the fixed order at a lower level.
ã SAP AG 2001
n Consider fixed pegging: The system only reschedules the order if it can also reschedule the orders
to which a fixed pegging relationship exists without violating the pegging relationship or product
availability.
n In order for the system to consider pegging relationships, you must also specify that the system is to
consider order-internal relationships.
n Consider fixed pegging within the propagation range: The system only considers the pegging
relationships for orders within the propagation range when rescheduling an operation. The system
does not consider dynamic pegging relationships to operations outside the propagation range.
(C) SAP AG AP220 5-13

Strategy: Insert Operation / Backward
Desired date
4
6 5 3 2 1
Today Time
4
6 5 3 2 1
Today Time
6 5 3 4 2 1 Operation to be inserted
Today Time Scheduled operations
ã SAP AG 2001
n Insert operation:You can use this finite scheduling mode to schedule an operation in an existing
schedule on (or as close as possible to) the desired date, even when there is no slot in the schedule
for this date, or only a slot that is too small. If necessary, the system creates a slot that is large
enough by shifting the neighboring operations that lie in the planning direction onto the resource. In
this way, the sequence of operations that have already been scheduled remains unchanged, and
operations that have already been scheduled are not rescheduled on alternative resources (alternative
modes).
n You can only use this scheduling mode for single resources that are to be finitely scheduled. You
specify in the scheduling parameters for the resource whether that resource is finite or infinite. In the
case of infinite resources, the system always schedules an operation infinitely on the desired date,
that is, without considering the existing resource load.
n The date on which the operation is inserted depends on the resource schedule on the desired date and
on the planning direction that you set:
• No operation has been scheduled on the desired date: In this case, the system schedules the
operation to be inserted on the desired date. If necessary, operations that were already scheduled
are shifted as follows:
When the planning direction is backwards, the operations scheduled before the desired date are
shifted into the past. When the planning direction is forwards, the operations scheduled after the
desired date are shifted into the future.
• An operation has already been scheduled on the desired date: In this case the operation to be
inserted is inserted, depending on the planning direction, immediately after (when the planning
direction is forwards) or immediately before (when the planning direction is backwards) the
operation that has already been scheduled. If necessary, the operations that have already been
scheduled are shifted, as described previously.
n If the system cannot generate a sufficiently large slot, for example, because otherwise the
relationships would be violated, all operations remain where they are. The operation is not inserted.
(C) SAP AG AP220 5-14

Strategy: Insert Operation / Forward (1)
Desired date Use: To solve a problem at a bottleneck

resource. The changes are automatically
progagated throughout the whole order
network.
4
6 5 3 2 1
Today Time
6 5 3 2 1
Today Time
6 5 4 3 2 1
Operation to be inserted
Today Time
Scheduled operations
ã SAP AG 2001
(C) SAP AG AP220 5-15

Strategy: Insert Operation / Forward (2)
Before rescheduling
Selected
operation
Selected A10
resource
Resource 1 A10 B10
Resource 2 A20 B20
Resource 3 A30 B30

Dependent
resource
Time axis
Dependent
operations
After rescheduling
Resource 1 A10 B10
Resource 2 A20 B20
Resource 3 A30 B30
Time axis
Relationship
ã SAP AG 2001
n Automatic Propagation of Changes: If you schedule or reschedule an operation or an order, other

operations and orders are usually affected. To keep the schedule consistent, subsequent rescheduling
is often required. This is automatically performed by the system.
n In the example in the graphic, you reschedule the operation A10 on another date. Operation A10 is
the selected operation, and resource 1 is therefore the selected resource. So that operation A10 can be
scheduled on the new desired date, the system must shift operation B10 on the selected resource to a
date in the future. A10 and B10 have relationships to further dependent operations on the dependent
resources 2 and 3. The system also reschedules these dependent operations so that the relationships
can be observed.
(C) SAP AG AP220 5-16

Standard SAP Heuristics
Standard
Standard heuristics
heuristics
Heuristics
Heuristics for
for Heuristics
Heuristics for
for detailed
detailed scheduling
scheduling
production
production planning
planning (graphical
(graphical control
control station)
station)
Mainly lot-sizing procedures, Are used for scheduling; planning focus

planning focus is on the products is resources and operations
(for example, planning products
and generating orders based on
lot-sizing procedures)
ã SAP AG 2001
n You use heuristics to solve planning problems (using certain algorithms) for certain objects
(depending on the planning focus, either for products, operations, resources, or line networks). You
can use your own heuristics or those defined by SAP.
n The detailed scheduling heuristics are for scheduling; their planning focus is on resources and
operations. Examples of such heuristics are reduce leadtime and dissolve backlog.
(C) SAP AG AP220 5-17

Standard Detailed Scheduling Heuristics
Heuristics
Heuristics for
for
detailed
detailed scheduling
scheduling
SAP001: Schedule sequence

Schedule selected operations in a predefined sequence
SAP002: Dissolve backlog

Reschedule in the past at a resource
SAP003: Schedule sequence manually

Schedule selected operations in a sequence that was already created manually.
(only possible in planning board).
SAP004: Minimize lead time

Reduce the lead time for orders at selected resources
ã SAP AG 2001
n Sequence scheduling: You use this heuristic to schedule selected scheduled operations in a
particular sequence in the production planning run and in the DS planning board. This heuristic uses
the function module /SAPAPO/HEUR_PLAN_SEQUENCE. Activities: You specify the scheduling
sequence in the heuristic settings. When you start the heuristic for the selected operations, the system
deallocates these operations and then schedules them again one after another in the set sequence. For
further information regarding prerequisites and activities for using the detailed scheduling heuristics,
see Detailed Scheduling Heuristics.
n Dissolve backlog: You can use this heuristic to reschedule the backlog in the production planning
run and in the DS planning board. You can automatically reschedule the operations that lie in the
past in the planning period to the current date or in the future. The current date and current time is
the default for the earliest possible start date for the operations to be rescheduled. You can use the
offset time in the heuristic settings to shift the earliest possible start date into the past or into the
future. This heuristic uses the function module SAPAPO/HEUR_RESOLVE_BACKLOG.
n Manual sequence scheduling: You can use this heuristic in the DS planning board to create a
scheduling sequence of your choice for a group of selected scheduled operations and then schedule
the operations in this sequence. You create the sequence of operations manually on a graphical list
interface when calling up the heuristic.
Due to the fact that you create the operation sequence manually when calling up the heuristic, you
cannot use this heuristic in the production planning run.
(C) SAP AG AP220 5-18

Detailed Scheduling Heuristics (2)
Heuristics
Heuristics for
for
detailed
detailed scheduling
scheduling
SAP005: schedule deallocated operations

Schedule selected deallocated operations
SAP010: Plan sequence, relationships & pegging
Merge orders (container resource)

Merge selected synchronized planned orders at multi-resources
with storage characteristics (container resources) (only possible in planning board)
ã SAP AG 2001
n Lead time reduction: You can use this heuristic to reduce the lead time for orders in the production
planning run and in the DS planning board that have operations at selected resources. The system
fixes the selected resources and thereby all the operations that are scheduled at these resources.
Starting from each fixed operation, the system schedules the other operations of the affected order in
such a way that time intervals between the operations of that order are as small as possible. This
heuristic uses the function module /SAPAPO/HEUR_REDUCE_LEADTIME. For further
information regarding prerequisites and activities for using the detailed scheduling heuristics, see
Detailed Scheduling Heuristics.
n Schedule deallocated operations: You can use this heuristic to reschedule selected deallocated
operations in the production planning run and in the DS planning board. This heuristic uses the
function module /SAPAPO/HEUR_DISPATCH. For further information regarding prerequisites and
activities for using the detailed scheduling heuristics, see Detailed Scheduling Heuristics.
n Merge orders (container resources): You can use this heuristic to merge planned orders you have
selected in the DS planning board. The system increases the order quantity of an existing order to the
sum of all selected individual orders and deletes the other selected orders. All of the pegging
relationships are transferred to the merged order. This heuristic uses the function module
/SAPAPO/HEUR_MERGE_ORDERS.
Prerequisites for merging orders: All orders must reference the same production process model; all
orders must be planned orders; all orders must be synchronized (start and finish times are identical);
all orders must be scheduled at a multi-resource with storage characteristics; synchronization must be
activated in the master data of the resource.
(C) SAP AG AP220 5-19

Overall Profile
Product
Productview,
view,
PP/DS
PP/DSmenu
menu product
product
planning
planningtable
table
l The overall profile is
used to call up the
Overall
Overallprofile
profile Overall
Overallprofile
profile planning table
APO
APO -- planning
planning board
board
ã SAP AG 2001
n You can call up the planning board

Directly from the screen
From the product view and product planning table
(C) SAP AG AP220 5-20

Profile Configuration
l Overall profile
n Planning version
n Sub-profiles:
M DS planning board profile
M Time profile
M Propagation range
M Work area
M Strategy profile
M Optimization profile
M Alert Monitor profile
ã SAP AG 2001
n You specify the settings for the planning board in the overall profile.
n The overall profile contains the following sub-profiles in which the settings are grouped
thematically:
DS planning board profile: Layout of the planning board
Time profile: Planning period, evaluation period (= display period)
Propagation range: Resources and products that you or the system can schedule
Work area: Resources that are transferred to the planning table.
- From these resources the system determines the objects that are displayed in the different charts
of the planning table. The work area is only relevant for the planning table that you call up
directly in the PP/DS area menu.
Strategy profile: Detailed scheduling strategies
Optimization profile: Settings for the optimization
Alert Monitor profile: Settings for the Alert Monitor (alert categories, alert situations)
- The objects for which alerts are created in the planning board are the resources and products in
the propagation range and the resources that you specify using the work area. In the Alert
Monitor profile, you can define additional objects.
(C) SAP AG AP220 5-21

The Production Scheduler's Tools: Summary
You are now able to:
l Use the DS planning board

l Describe the functions and heuristics of the DS
planning board
ã SAP AG 2001
(C) SAP AG AP220 5-22

The Machine Scheduler’s Tools - Exercises
Unit: The Machine Scheduler’s Tools

• reschedule orders in the detailed scheduling planning board
Hamburg, you must reschedule the sequence of the existing
orders.
1-1 Until now you have only created orders for

pump T-F2## (white pump).
To carry out sequencing for differently
colored pumps, you must now create
requirements and orders for pumps T-F3##
(yellow pump) and T-F4## (blue pump):
(C) SAP AG AP220 5-23

Save your
Save your
entries.
entries.
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as the period
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are, line by
schedule
however, the
also
entering indicator
visible following
T (day directly
format) in
APO. variants:
the planning
SAP_M
period field in
RP_001.
the initial screen
of the Enter the
1-1-2 After
transaction.
independentselecting
Enter the
requirements
the for
following
material T-F4##
variants,
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(blue pump) in
choose
requirements
plant 1000 for
thein the
pump
R/3 T-F3## in
program
Selectio
plant 1000:
planning. nSelect
the day schedule
criteria
line as the period
button.
scheduleNow line by
(C) SAP AG AP220 5-24
entering select
indicator
T (day format)
the in
the planning
Field Value
Product
Location 1000
Production planner 0##
Marked for planning X
(C) SAP AG AP220 5-25

Choose
Execute
.
1-3
Chec
k in
which
sequenc
e the
planned
orders
from the
producti
on
planning
were
created.
To do
this, use
the
detailed
scheduli
ng
planning
board.
1-3-1 Call up the
variable view of
the detailed
scheduling
planning board.
Choose the
“Pump” overall
profile and
confirm using
Enter.
Also choose the

“Pump GR##”
work area and
confirm using
Enter.
Access the
detailed
scheduling
planning board
(C) SAP AG AP220 5-26
using the
selection criteria
given above, and
The Machine Scheduler’s Tools - Solutions
Unit: The Machine Scheduler’s Tools
1-1
1-1-1 R/3 Menu path: Logistics → Production → Production planning →

Demand Management → Planned independent requirement → Create
directly in APO.
1-1-2
1-2 APO Menu path: Production planning → Automated Production Planning and
Optimization → Production planning run
1-3
1-3-1 APO Menu path: Production planning → Interactive production planning
→ Detailed Scheduling Planning Board
1-3-2
1-3-3
1-3-4
(C) SAP AG AP220 5-27

Optimizing Scheduling
Contents:
l Concept and use of optimization in PP/DS
l Mathematical optimization procedure in PP/DS
l Overview of APO optimization architecture
l Process: Orders in optimization
ã SAP AG 2001

Optimizing Scheduling: Unit Objectives
At the conclusion of this unit, you will be

able to
l Explain the concept and use of optimization in PP/DS

l Describe the optimization procedure used in PP/DS
l Explain the process for orders during optimization
ã SAP AG 2001

1 Course Overview

2 Products

6
ã SAP AG 2001

Optimizing Scheduling: Business Scenario
l The Precision Pump Company wants to optimize

the schedule as far as the following is concerned:
n The total lead time of the schedule within an
optimization horizon
n Setup times
n Setup costs
n Order delays
n Costs of alternative machines
ã SAP AG 2001

Planning and Optimization
2: O
p
sequ timizatio
ence n
optim (PP/DS:
1: Pl izati
anni on)
ng (g
plan
ned eneratin
orde g
rs)
Productions Supply Network

Planning Planning
Aggregation
ã SAP AG 2001
n Planning generates planned orders which are scheduled at resources based on available capacity. The
orders may not necessarily be scheduled in an optimum sequence. Therefore, you can perform an
optimization run at the end of planning to, for example, optimize the sequence with regard to setup
times.

Optimization Solutions
APO optimization solutions

A complete range of optimization solutions
adjusted to planning tasks
Linear programming / Genetic algorithm,

programming constraint-based
mixed/in whole numbers Supply Production programming,
Network Planning and tab. search
Design + Detailed
Planning Scheduling
Transport
Tab. search Planning
ã SAP AG 2001
n In APO, the following optimizers are available: optimizer for CTM, optimizer for PP/DS, optimizer
for Network Design, optimizer for Sequence Planning, optimizer for Supply Network Planning,
optimizer for Transport Planning.
n In Supply Network Planning, optimization problems are usually of the nature that they can be
solved with an "exact mathematical solution procedure" (which can be solved using linear
equations). For this reason, linear programming is used for optimization in Supply Network
Planning. Linear programming is able to calculate an "exact solution".
n In Production Planning and Detailed Scheduling (PP/DS) however, there are usually more
complex optimization problems for which no "exact solutions" can be found. Therefore, linear
programming is less suited for PP/DS. Instead, solutions are more able to approximate an "optimum
or exact solution". Approximate optimization procedures are therefore more suited to be used in
PP/DS (genetic algorithm/constraint-based programming). This allows the optimization system
to find a suitable solution faster.
n The different optimizers can be installed on the same server on which the APO application, the
LiveCache, and the database are all installed (but you can also install them on different servers). The
APO application server and the optimizer are linked via a TCP/IP connection. Here you specify
whether the optimizer is to be called on the APO application server or on a different server
(transaction sm59).

Optimization Concept in PP/DS
l Optimization: Change of production dates/sequences and resource

assignments of existing operations/activities with regard to the following criteria
(no creation or deletion of orders):
W1* Total lead time

+ W2* Sum of setup times
+ W3* Sum of setup costs
+ W4* Maximum delay costs
+ W5* Sum of delay costs
+ W6* Sum of mode costs
Objective function = MINIMUM
ã SAP AG 2001
n Use: Optimization allows you to optimize the production dates/sequences and the resource
assignment of existing operations/activities which were generated by the production planning run or
manual planning. The optimizer does not create or delete orders.
The purpose of optimization is to generate feasible production plans and increase the efficiency of
production. Several optimization parameters (such as setup times, due date violations) can be
weighted in such a way that the optimized schedule comes as close to the desired results (for
example, minimum setup times) as possible. The following parameters can be taken into account in
optimization:
• Total lead time (from the start of the first operation to the end of the last operation in a schedule
within the optimization horizon). The total lead time makes a statement about the compactness of
the orders within the optimization horizon.
• Sum of setup times
• Sum of setup costs
• Maximum delay costs (maximum delay of an order compared to its requirements or due date).
• Sum of delay costs (delay compared to requirements or due dates)
• Sum of mode costs

Weighting of Optimization Parameters (1)
30
Setup times Violation of the

due date
ã SAP AG 2001
n Optimization principle: Optimization evaluates a schedule (that is, the dates/sequence and resource
assignment of operations/activities) using an objective function.
The objective function is the sum of differently weighted times and costs that are especially critical
for planning. During optimization, the system tries to reduce the value of the objective function, that
is, find a schedule in which the different times and costs - based on their weighting - are as small as
possible.
In general, it is not possible to meet all the scheduling goals to the same extent. Shortening the setup
times (by changing the order sequence) can, for example, lead to a violation of the due dates.

Weighting of Optimization Parameters (2)
A C A Requirements time
Setup
1) A Setup time C time A Orders for products A, B, C
Setup
2) A A time C
Setup times
x Time 1
Time 2
x
Delays
ã SAP AG 2001

Example for the Complexity of Optimization
Problems
l Number of possible assignments of operations to machines in APO,

without considering any constraints, decision variables, objective
functions and planning characteristics:
n N = number of operations
n M = number of machines
n Possible sequences: (N!)M
n 10 operations and 5 machines =
(10!)5 = 6 X 10 31 possible sequences !!!
Imagine a real "everyday" scheduling scenario!
ã SAP AG 2001
n When optimizing orders/operations, even "small” scheduling problems are complex.

n To get a good solution within a limited processing time, algorithms are needed that reduce the
complexity of scheduling problems.
(C) SAP AG AP220 6-10

Optimization Architecture: Overview
Optimization can also be started on a separate optimization server

(parallel processing)
APO
What can we live
Cache
do?
Metaheuristics
Model generator
R/3 Core Model Time decomposition
Resource decomposition
CIF
Genetic algorithms (GA)

Constraint programming Optimization procedures
(CP)
ã SAP AG 2001
n The model generator preprocesses the data from the liveCache for the optimization. The core model
is the set of preprocessed data. The core model data is transferred to the optimizer.
n There are two optimization procedures you can choose from in PP/DS:
Constraint programming (CP)
n You can use metaheuristics to reduce the complexity of the optimization problem. By decomposing
the big problem, metaheuristics generate less complex problems that can be more easily solved.
Optimization is performed for the reduced problems consecutively. By using metaheuristics, a better
quality of solution is achieved in a given run time. Without decomposition, the processing time
required to ensure a certain quality level would increase to the power of three (cubic) as the problem
size increases.
n Parallelization allows you to perform optimization on several optimization servers. You can also
perform optimization on a separate server just for optimization, while planning in APO on a different
server.
n Prerequisites: The master data for optimization is maintained in Customizing for Basic settings (for
example, the network connections to the optimization server and the maximum number of users).
(C) SAP AG AP220 6-11

Optimization Algorithm
Optimization can also be started on a separate optimization server

(parallel processing)
live
Cache
Model generator
Metaheuristics
R/3 Time decomposition

Core Model
Resource decomposition
CIF

Constraint programming Optimization algorithm
(CP)
ã SAP AG 2001
n Optimization algorithm: How suitable an optimization algorithm is in finding a good solution,

depends on the scheduling problem. You can choose between the following optimization algorithms:
• Constraint propagation: This algorithm is suitable for complex scheduling problems in which
many interdependencies and constraints have to be considered, and where it is difficult for the
planner, for example, to find a feasible solution by scheduling interactively in the DS planning
board. All unfeasible solutions are successively filtered out. If the optimization problem is limited
by several constraints, this algorithm can have advantages.
• Genetic algorithm: This algorithm is suitable for scheduling problems in which the planner is
faced with the problem of finding a very good solution, and not just a feasible one. A typical use
for this algorithm is to establish an optimal sequence based on the setup of operations.
n The optimization algorithm and weighting of optimization criteria you use to obtain good solutions is
dependent on the scheduling situation and the company goals. You decide on the quality of the
solutions by setting the processing time for the optimization. The rules of thumb are as follows:
• The more time you have, the better the solution will be.
• The more extensive and complex the problem is, the more time you require.
(C) SAP AG AP220 6-12

Constraint-Based Programming (CP)
l Dynamic constraint propagation

n Change variables
n Check hard constraints for each solution
n Check quality of each solution Initial solution
n Remove unfeasible and bad solutions
l For larger contraint-scheduling Solutions with
problems changed variables
n Shelf life problems
Solutions:
Feasible, good
Unfeasible, bad
ã SAP AG 2001
n CP is suitable for complex scheduling problems in which many interdependencies and constraints
have to be considered, and where it is difficult for the planner, for example, to find a feasible
solution by scheduling interactively in the planning board.
n At every step of the optimization process, CP checks all hard constraints (constraints given by the
PPM or the resources). The system calculates successive solutions with the additional constraint so
that the quality of the solution is better than that of the predecessor.
n Unfeasible or bad solution are removed. This results in
The search space being reduced
Dead ends being detected early
n Complete back tracking is possible while a solution is being created.
n Propagation can be limited by metaheuristics (decomposition).
n Although dynamic propagation needs time, it improves the quality of the solution.
n CP uses a high performance constraint propagator in conjunction with branch and bound techniques
(ILOG).
(C) SAP AG AP220 6-13

Constraint Programming: Chess Board Example
Task: Set up four queens in a way that they cannot hit each other. While
doing this, count the number of thought process steps you need to
achieve this.
4 Queens
ã SAP AG 2001
n Task: Set up four queens on the chess board in a way that they cannot hit each other. Count the
number of steps/thoughts you needed to solve this problem.
n Directions: In chess, one queen can reach all the fields of a chess board in the horizontal, vertical
and diagonal directions. Place one queen on the board and then decide where to put the other three
queens so that they do not hit each other, one after the other.
(C) SAP AG AP220 6-14

Chess Example: Solution Step 1 and 2
Step 1: Set up the first queen
Step 2: Propagate the unfeasible

solutions
ã SAP AG 2001
(C) SAP AG AP220 6-15


solutions
Step 3: Set up the second queen

solutions
ã SAP AG 2001
(C) SAP AG AP220 6-16


solutions

solutions

solutions
ã SAP AG 2001
(C) SAP AG AP220 6-17

Chess Example: Solution Step 7

solutions

solutions
Step 5: Set up the third queen

solutions
Step 7: Set up the fourth queen ->

solution The constraint solution
ã SAP AG 2001
(C) SAP AG AP220 6-18

Genetic Algorithms (GA)
l Based on the concept of genetics and evolution

l Used for sequencing problems
Generate initial population
Select parents
Generate offspring population
Evaluate offspring solutions
Take the best offspring solutions
ã SAP AG 2001
n Genetic algrorithms are a class of algorithms which, as the name suggests, are based on genetics.
n GA begins the optimization process by creating an initial population of possible solutions. In
successive passes GA produces offspring solutions that are based on the initial parent solutions with
slightly modified parameters.
n Modifications are generated by crossover/reproduction or by mutation. Typical mutations are:
Exchanging the sequence of activities
Changing the resource allocation of activities
n At the end of successive passes an objective function is applied to determine the fitness of the
offspring solutions. At this point, the worst solutions are discarded and the best ones are kept as new
parents. This process continues through many generations until the predetermined run time is
reached. At this point, the best solution is chosen based upon the objective function.
n GA is suitable for detailed scheduling problems in which the planner is faced with the problem of
finding a very good solution, and not just a feasible one. Feasibility should not be the problem when
looking for a solution. Typically, GA is used in solving scheduling problems once most of the
constraint issues have been resolved by the production planning process. A practical example is
scheduling a sequence of activities with minimum setup time being the primary objective.
(C) SAP AG AP220 6-19

Metaheuristics: Time Decomposition
Resources
Time
Current window
Gliding window
1. Optimize schedule only in current window
2. Move window by a time delta
3. Repeat process
ã SAP AG 2001
n When using time decomposition, the schedule is not optimized in one step for the complete
optimization horizon, but in many steps. In each step only a part of the schedule within a small
"gliding” window is optimized, whereby the "gliding" windows overlap.
n The size and overlapping of the gliding windows are determined by the metaheuristic and is
dependent on the complexity of the optimization problem.
n Disadvantages of the window size:
When using a small window, the quality of the solution is decreased.
When using a large window, the run time to achieve a certain quality level is increased.
(C) SAP AG AP220 6-20

Optimizing on a Separate Optimization Server as
well as Parallel Processing
Server 1 Server 2
CIF
R/3 live
Cache
Database liveCache APO application Optimizer
Server 1 Server 2 (APO database and liveCache can be Server 3

installed on different servers)
CIF
R/3 live
Cache
RFC
destination
Database liveCache APO application Optimizer 1
Further optimization servers

are technically possible
ã SAP AG 2001
n The APO application, APO database, APO liveCache and the APO optimier can all be installed on
the same server.
n However, you can also install the APO optimizer on a separate server. If you do this, you must
specify in the TCP/IP connection (transaction sm59), that the optimizer is not to be started on the
application server, but on an "explicit host".
n Parallel processing: You can connect several optimization servers to the APO application server in
parallel. This would make it possible, for example, to use the SNP optimizer on a different server
than the PP/DS optimizer.
n For more information on the architecture and installation of the optimizer, see the installation guide.
(C) SAP AG AP220 6-21

Constraints in Optimization
l Decision variables l Hard constraints

n Resource assignment n Due dates
(alternative machines) n Effectivity of the PPM
n Start dates of n Time constraints between activities
operations/orders
n Interruptible activities
n Pegging constraints
n Resource calender (working and
non-working times times)
n Resource utilization and capacity
n Sequence-dependent and resource-
dependent setup times
l Soft constraints
n Requirements dates of sales orders
ã SAP AG 2001
n To achieve an optimized schedule, the start dates of the activities and the resource assignment are
varied during the optimization.
n Optimization constraints: Different scheduling constraints are taken into account during optimization
that are either
Hard constraints, which the system must adhere to (for example, working times of a resource: the
system may only schedule activities during working times)
Soft constraints, which the system tries to adhere to but may violate to find a solution that
adheres to the hard constraints (for example, requirements dates of sales orders: the system may
schedule receipts after the requirements date. These delays, however, can be minimized during
optimization).
n Note: Optimization does not take the planning parameters in the resource and the detailed planning
strategies into account.
(C) SAP AG AP220 6-22

Calling the Optimizer
l Detailed scheduling planning Execution: interactive/

board simulative
l Product planning table
l Production planning run Execution in background
ã SAP AG 2001
n Integration: Optimization is integrated in the following applications:

Detailed scheduling planning board
Product planning table
n You execute optimization interactively in the planning board and planning table, and in the
background for the production planning run.
n When you call the planning board and planning table, the operational planning data is read in a
separate interactive and simulative planning window. When you call optimization in the planning
board and planning table, optimization is performed in this simulative planning window (interactive,
simulative planning). The optimization result does not directly overwrite the operational planning
situation. You can open several planning board modes at the same time and use different
optimization parameters to start optimization runs without changing the operative planning. When
you save the planning board or planning table, the system copies the optimization results to
operational planning (planning version 000).
If you exit without saving, do not overwrite your previous planning.
n Prerequisites: The master data for optimization is maintained in Customizing for Basic Settings (for
example, the network connections to the optimization server and the maximum number of users).
(C) SAP AG AP220 6-23

Optimization Window: Time and Resources
Start Earliest start for optimized schedule End
Resource A
Resource B
Resource C
Resource D
Resource E
Non-working times
Fixed operations
Operations, that may be rescheduled
Relationships
Transferred resources: B, C, D
Optimization range
ã SAP AG 2001
n When you call up optimization you set the optimization horizon (start and end) and the start date
for the optimized schedule. The optimization function reschedules orders and operations that are:
Completely within the optimization horizon (defined by a start and an end date)
Not fixed
At resources which were transferred to optimization
- If you have selected resources in the planning board, only these selected resources are
transferred to the optimizer. If you have not selected any resources in the planning board, the
system transfers the resources that you specified in the work area for the planning board and the
optimizer.
In particular, the system can only reschedule an activity to alternative resources during
optimization when these resources are included in the resource selection for optimization.
n The relationships of the fixed orders and operations to the non-fixed orders and operations determine
if and by how much these orders and operations can be shifted during optimization. The optimized
schedule is, therefore, adjusted to accommodate the fixed orders and operations.
n The system does not change planning outside of the optimization window during planning. Activities
outside of the optimization window are fixed during optimization. However, the fixed activities
determine by their relationships to the non-fixed activities in the optimization range, whether and
how far these activities can be rescheduled during optimization. The optimized schedule is,
therefore, adjusted to accommodate the fixed activities.
n Earliest start date for the optimized schedule: Before the optimization, you specify the earliest
date on which the optimization function can schedule the activities. You cannot enter an earliest start
date that lies in the past.
(C) SAP AG AP220 6-24

Fix Activities, Operations and Orders
Fixed activity
Resource 1 Activity A
* (paint)
Activity B
Resource 2 (assemble)
Time
ã SAP AG 2001
n Activities, operations and orders can be fixed during optimization. The system does not reschedule
fixed objects during optimization. However, the fixed objects determine by their time relationships
or pegging relationships to non-fixed objects whether, and by how far, these objects can be shifted
during optimization. The optimized schedule is, therefore, adjusted to accommodate the fixed
objects.
n The following objects are always fixed:
Activities that are do not lie, or only partially lie, within the optimization range
Started, partially confirmed or finally confirmed operations
Operations that you fixed in the production planning run or in the DS planning board
Sales orders
n You can fix the following objects for the optimization as required:
Selected order types (for example, in-house production orders or external procurement orders)
Orders that only lie partially in the optimization range
Released orders
Orders that contain fixed, started, partially confirmed or finally confirmed operations
n You enter the corresponding settings when calling up optimization, or in the optimization profile on
the Order processing tab.
(C) SAP AG AP220 6-25

Multi-Criteria Optimization
W1* Total lead time

+ W2* Sum of setup times
+ W3* Sum of setup costs
+ W4* Maximum delay costs
+ W5* Sum of delay costs
+ W6* Sum of mode costs
Objective function = MINIMUM
ã SAP AG 2001
n Optimization uses an objective function to evaluate a schedule (that is, the dates/sequence and
resource assignment of operations/activities).
The objective function is the sum of the different weighted optimization criteria that reflect the
central scheduling problems for production planning: The optimization function tries to reduce the
value of the objective function during the optimization run, that is, it tries to find a schedule in which
the value of the various criteria, according to their weighting, are as low as possible. In general, it is
not possible to fulfill all the criteria to the same extent. For example, a reduction in the setup time
could lead to an increase in the total lead time.
n The following parameters can be taken into account in optimization:
• Total lead time
• Sum of setup times
• Sum of setup costs
• Maximum delay costs
• Sum of delay costs
• Sum of mode costs
n The weighting that you apply to the various times or costs when defining the objective function
reflect the importance of each problem for your schedule. For example, if a very important
scheduling objective of yours is to have low setup costs, you weight the setup costs in the objective
function particularly highly. During optimization, the system tries to reduce the value of the
objective function, that is, find a schedule in which the different times and costs - based on their
weighting - are as small as possible. In general, it is not possible to meet all the scheduling goals to
the same extent since some of the goals compete, such as when a reduction in the setup time leads to
an increase in the total lead time.
(C) SAP AG AP220 6-26

Optimization: Sum of Setup Times/Setup Costs
Setup times at paint shop Setup times in minutes
Prod. A B C Product A: white color

A 0 10 20 Product B: yellow color
B 30 0 15 Product C: blue color
C 30 25 0
A C Requirements time B A
Setup Setup Setup

C time A time B time A
Operations of products A to C at paint shop according to schedule (starting situation for optimization): planned
orders for A were created first, then for B and C
Setup Setup
C time A A time B
Optimization result (with light weighting of delays)
Setup Setup
A A time B time
C
tup
t ime Optimization result (without weighting of delays)
m se
imu
Op t Time
ã SAP AG 2001
n Use: You can optimize the schedule for single resources based on the sum of the setup times and
sum of the setup costs. The system determines sequence dependent setup times and setup costs from
the setup matrix (which can only be maintained for single resources).
n Prerequisites:
• You have modeled the single resources and the operations that are processed at these resources
exactly as with the setup time adjustment (see the unit Simultaneous Material and Capacity
Requirements Planning).
• You strongly weighted the setup times or the setup costs in the objective function.
n Scope of function: In the objective function, the system interprets the values for the setup times and
setup costs from the setup matrix as follows:
• You enter the setup time in a unit of your choice (for example, hours or minutes) in the setup
matrix. The system uses the setup duration in seconds in the objective function. If you enter, for
example, a setup duration of 10 minutes in the setup matrix, the system uses the value of 600
(seconds) in the objective function.
• You enter the setup costs without unit of measurement in the setup matrix. In the objective
function, the system directly uses the value entered in the setup matrix. If you enter, for example,
the value 10 for the setup costs in the setup matrix, the system uses the value of 10 to calculate in
the objective function.
n Important: In the objective function, the setup costs with a value of 10 correspond to a setup
duration of 10 seconds. You must consider this relationship between setup times and setup costs
when defining the objective function, that is, when specifying the weighting for the setup times and
the setup costs.
(C) SAP AG AP220 6-27

Optimization: Sum of Mode Costs
Requirements time
C B (20) B C C C
Resource W1906_1000_001 (painting line) (inexp.) C (20) C (20) C (20) C (20)
Resource W4711_1000_001 (painting comp.) (expensive) B (20)
Resource W1906_1000_001 (pre-assembly) C (10) B (10) C (10) C (10) C (10)
Product B, operation 20 (paint)

Purchase requisition Pur.req.Purchase
Pur. req.requisition
Pur.req.
Time
Optimization profile: Mode costs per mode priority
PPM Product B Mode priority for optimization/

restrictions in planning
Operation 20: Paint
Activity: Production Priority A Priority B
Mode 1 (for example, new resource) Mode 2 (for example, old resource)
Primary resource W1906_1000_001 Primary resource W4711_1000_001
Secondary resource W1906_1000_002 Secondary resource W4711_1000_002
ã SAP AG 2001
n Use: You can use optimization to optimize the schedule according to the sum of the mode costs for
the activities. The mode costs for an activity are the costs that are incurred when executing an
activity in a particular mode; they are calculated as follows from the fixed and variable costs:
Mode costs = Fixed costs + Variable costs x Duration of activity
n You maintain the fixed and variable costs depending on the mode priority; as the priority decreases,
the costs must either increase or remain the same. The system uses the activity duration in seconds to
calculate the mode costs.
n To reduce the costs for an activity, the system can choose a mode with lower costs for the activity
during optimization, that is, it reschedules the activity to an alternative primary resource with lower
costs and to the corresponding secondary resources.
n Prerequisites:
• You defined the fixed and variable costs depending on the mode priority in the optimization
profile or when calling up the optimization on the Costs tab. If you do not enter any mode costs,
the system uses the system default value.
• You strongly weighted the mode costs in the objective function.
(C) SAP AG AP220 6-28

Optimization:
Sum and Maximum Delay Costs
Product A: white color

Product B: yellow color
Product C: blue color
A C Requirements time B A
Setup Setup
C Setup time A time B time A
Operations of products A to C at paint shop according to schedule (starting situation for optimization): planned
orders for A were created first, then for B and C
Setup Setup
C time A A time B
Optimization result (with light weighting of delays)
Setup Setup
A A time B time
C
p time Optimization result (without weighting of delays)
setu
im um
Opt Time
ã SAP AG 2001
n Use: You can use optimization to optimize the schedule according to the costs that are associated
with the delayed completion of orders or activities. The following optimization criteria is available:
Sum of the delay costs in the optimization horizon as well as the maximum delay costs for a single
order or a single activity.
n A delay occurs if a receipt is later than a requirement or if the latest allowed start or finish date of an
activity lies before the actual start or finish date.
n The costs of the delay of a single order or activity depend on the order priority and the duration of
the delay; this is calculated as follows:
Delay costs = Costs dependent on priority x Duration of delay
n When a receipt delivers several requirements with a delay, the system uses the biggest delay for this
receipt for one of the requirements.
n You maintain the priority-dependent costs depending on the order priority in the optimization
profile; as the priority decreases, the costs must either decrease or stay the same. The order priority
can be specified by the sales order, the planned requirement or - depending on the product - by the
product master. Depending on the planning version, you specify from where an order obtains its
priority in Model and Version Management. An activity inherits its priority from the order. The
system uses the delay duration in seconds to calculate the delay costs. This allows you to consider
order priorities above the delay costs in the optimizer.
n To reduce delay costs during optimization, the system tries to schedule orders and activities that have
a high priority with the smallest possible delay (if necessary, at the expense of orders and activities
with lower priority for which greater delays are not as crucial).
n Prerequisites:
• You defined the priority-dependent costs depending on the order priority in the optimization
profile or when calling up optimization on the Costs tab. If you do not enter any costs, the system
uses the default value.
(C) SAP AG AP220 6-29

• You strongly weighted the delay costs in the objective function.
(C) SAP AG AP220 6-30

Optimization Profile
l Optimization algorithms
n Constraint-based programming
n Genetic algorithm
l Run time
l Objective function weighting
n Total lead time
n Sum of setup times
n Sum of setup costs
n Maximum delay costs
n Sum of delay costs
n Sum of mode costs
ã SAP AG 2001
n You maintain the settings for optimization in the optimization profile in Customizing for PP/DS.
You can change the optimization procedure, the runtime and the weightings interactively before
starting an optimization run.
n How suitable an optimization procedure is in finding a good solution, depends on the scheduling
problem (constraint propagation, genetic algorithm).
n Basically, you determine the quality of the solutions by setting the run time for the optimization.
n Which weights of optimization criteria you use to obtain good solutions depends on the scheduling
situation and the organizational goals.
n In general, the optimization function considers constraints given by the resources (for example, the
calendar), the production process model (for example, time constraints) and the order (for example,
due dates). However, you can "switch off " a part of the hard constraints. For example, if you remove
the calender the resources are available 24 hours each day.
(C) SAP AG AP220 6-31

Optimizing Scheduling: Summary
You are now able to

l Explain the concept and use of optimization in
PP/DS
l Describe the optimization procedure used in PP/DS
l Explain the process for orders during optimization
ã SAP AG 2001
n Further functions in optimization:

APO Optimization Extension Workbench (APX): You can make optimization more flexible
with the APO Optimization Extension Workbench (APX). The purpose is to enhance user-specific
optimization components of the standard planning tools in SAP APO. You call these individual
optimizers directly from APO. They form a planning system together with the standard optimizers
and the heuristics. This system offers the flexibility required to meet the exact needs of the user at
any time.
Campaign optimization: You can perform campaign optimization for bottleneck resources in
optimization. During campaign optimization, the system optimizes the duration and sequence of
campaigns with respect to the following optimization criteria: Sum of earliness costs, sum of delay
costs, sum of setup times, sum of setup costs. Already existing campaigns can be retained,
extended or dissolved during campaign optimization. Following campaign optimization, the
system optimizes the overall schedule while retaining the optimized campaigns.
Multi-agent optimization: Multi-agent optimization is available so that you can optimize on one
optimization server with several processors in parallel. During multi-agent optimization, the
system uses all the processors in parallel for optimization; it can execute the optimization on each
processor using a different (user-defined) objective function. Each "agent" optimizes the same
given scheduling problem with "its" objective function.
n For more information on these topics, see the online help.
(C) SAP AG AP220 6-32

Appendix
l This section contains additional material which can

be used for self-study purposes.
l This material is not part of the standard course.
ã SAP AG 2001

Recommended Follow-up Activities
l Go through the exercises using your own data

l Read online documentation
l Further courses in the area of Supply Chain
Management
ã SAP AG 2001

11 Course Overview
1

2 Products
Simultaneous Material and Capacity

3 Requirements Planning
ã SAP AG 2001

Typischer Prozeßfluß in diskreter Fertigung /
Prozeßfertigung (4)
R/3 Restdauer wird auf rückgemeldetes Ist-

Ende (in der Regel heute) terminiert;
APO
Kapazitätsbedarfe für Vorgang 10 sind in
der Zukunft nur noch anteilig sichtbar,
A Vorgang fixiert A
Fertigungsauftrag
A) 10 20 30 10 20 30
Übertragung
Vorgangsrückmeldung
C D C D
Zeit Zeit
heute heute
Lohnscheinrückmeldung (Gutmeldung) über Ende
50 Stück für Vorgang 10 (100 Stück) Start Rest-
(Rückmeldung erfolgt auf Vorgangsebene) Start
Vorgangsdauern + Kapazitätsbedarfe + Input-
Lohnscheinrückmeldung (Gutmeldung) über
B) 50 Stück und Ausschuß 25 Stück für
und Outputmengen werden reduziert
Vorgang 10 (100 Stück)
A A: Output
Fertigungsauftrag 75 STück
10 20 30 Übertragung 10 20 30
C D C D
Zeit Zeit
heute heute
Zugänge reduzieren Fertigungsauftrag

Wareneingang Zugänge reduzieren
Wareneingang Bestand erhöhen
Bestand erhöhen mit Menge 0
ã SAP AG 2001
n Rückmeldung: Die Rückmeldung zum Fertigungsauftrag wird stets im R/3 durchgeführt. Mit der
Rückmeldung werden die Kapazitätsbedarfe im R/3 und APO angepaßt.
n Lohnscheinrückmeldung: Es werden stets gesamte Vorgänge/Aufträge rückgemeldet.
n Gutmeldung: Wenn Sie Teilmengen eines Vorgangs rückmelden, wird der Vorgang zum
rückgemeldeten Ist-Endedatum verschoben (in der Regel wird kein Ist-Ende vorgegeben, wodurch
der Vorgang zur heute-Linie verschoben wird). Wenn Sie ein Verschieben des Vorgangs erst zur
Endrückmeldung des Vorgangs wünschen, können Sie einen Customer-Exit benutzen.
Die Dauer des Gesamtvorgangs bleibt gleich, nicht jedoch die Restdauer: Der teilrückgemeldete
Vorgang hat einen Starttermin, einen Termin Reststart sowie einen Endetermin. Die Differenz
zwischen Restart und Endetermin Vorgang ist die Restdauer. Kapazitätsbedarfe wurden bei der
Rückmeldung nicht reduziert (sie werden erst mit dem technischen Abschluß bzw. der
Löschvormerkung reduziert), wohl aber die Restdauer: Der Termin Reststart wird beim Rückmelden
auf die heute-Linie verschoben. Lediglich die Restdauer liegt in der Zukunft und erzeugt damit
Kapazitätsbedarfe in der Zukunft. Kapazitätsbedarfe zwischen dem Starttermin und dem Reststart
sind noch vorhanden, liegen jedoch in der Vergangenheit.
Rückgemeldete Vorgänge sind im APO fixiert. Mit der Endrückmeldung zum Vorgang
verschwinden auch im APO alle Restkapazitätsbedarfe zum Vorgang.
n Ausschußmeldung: Falls die Endrückmeldung eines Vorgangs mit einer Ausschußmeldung
verbunden wird, erfolgt eine Restmengenpropagierung (Restmenge der Outputmenge wird
angepaßt), falls die Restmengepropagierung im R/3 (ab Rel. 4.6c im Customizing Fertigungsauftrag:
Rückmeldeparameter) als auch im APO (im Produktstamm oder PP/DS-Customizing unter den
globalen Einstellungen) aktiviert wurde. Die entsprechenden Einstellungen zur
Restmengenpropagierung sollten im R/3 und APO analog gepflegt werden.
n Auftragsrückmeldungen werden in der R/3-APO-Schnittstelle als Einzelvorgangsrückmeldungen
übertragen. Daher gelten für die Auftragsrückmeldung die gleichen Regeln.

n Buchung des Wareneingangs (im R/3): Synchron wird im R/3 und im APO die Auftragsmenge für
den Zugang reduziert sowie der Bestand erhöht. Durch den gesamten Wareneingang zum
Fertigungsauftrag wird die Menge im APO-Auftrag auf Null gesetzt, der Fertigungsauftrag ist im
APO jedoch noch sichtbar (über die Benutzereinstellungen in der APO-Produktsicht können Sie
einstellen, daß Aufträge mit der Mengen Null nicht angezeigt werden). Ein Löschen des APO-
Fertigungsauftrages nach dem Wareneingang wird nicht durchgeführt, damit eventuelle
Stornobuchungen zum Fertigungsauftrag erfolgreich verarbeitet werden können.
n Durch das technische Abschließen im R/3 (Einzelverarbeitung oder Sammelverarbeitung) oder die
Löschvormerkung im R/3-Fertigungsauftrag wird der Fertigungsauftrag im APO gelöscht.

Typischer Prozeßfluß in diskreter Fertigung /
Prozeßfertigung (5)
R/3 Restdauer wird auf rückgemeldetes Ist-

Ende (in der Regel heute) terminiert
APO
A A
Fertigungsauftrag
10 20 30 Übertragung 10 20 30
S P C D C D
Zeit Zeit
heute heute
Zeitereignisrückmeldung (Gutmeldung) über 8-10 Uhr
50 Stück für Rüsten Vorgang 10 (100 Stück)
für 8-10 Uhr für Aktivität Rüsten
(Rückmeldung erfolgt auf Aktivitätsebene)
Zugänge reduzieren Fertigungsauftrag

Wareneingang Zugänge reduzieren mit Menge 0
Wareneingang Bestand erhöhen
Bestand erhöhen
ã SAP AG 2001
n Bei der Zeitereignisrückmeldung wird auf Basis eines Zeitereignisses rückgemeldet, so daß der
Reststart eines Vorgangs auf das rückgemeldete Datum/Uhrzeit gelegt wird.
n Hinweis zur Mengenpropagierung durch Ausschuß-Rückmeldungen: Sie können festlegen, daß
eine der folgenden Alternativen eintritt:
Propagierung aus: Nur die Menge des rückgemeldeten Vorgangs wird angepaßt.
Propagierung ein: Abweichungen zwischen geplanten und tatsächlichen Vorgangsmengen werden
auch an Nachfolgervorgänge mit Materialflußbeziehung weiterpropagiert und entsprechend
angepaßt. Außerdem wird die Outputmenge des Fertigungsauftrages angepaßt.
Abhängigkeiten: Damit eine Änderung von einem Vorgang an einen Nachfolgervorgang
weiterpropagiert werden kann, muß für die Beziehung zwischen den Aktivitäten dieser Vorgänge
das Materialflußkennzeichen gesetzt sein.
n Komponentenanpassung durch Rückmeldung: Wenn die vollständig rückgemeldete
Vorgangsmenge von der Planmenge abweicht, kann das System die Mengen für die Input- und die
Output-Komponenten anpassen. Sie können festlegen, daß die Input- und Output-Komponenten
nicht angepaßt werden sollen
ohne Rückmeldevorgang angepaßt werden sollen (d.h. Komponenten werden nur für
Nachfolgervorgänge angepaßt)
mit Rückmeldevorgang angepaßt werden sollen (d.h. Komponenten werden sowohl für den
rückgemeldeten Vorgang als auch für die Nachfolgervorgänge angepaßt). Hinweis: Eine solche
Einstellung ist nur im APO, nicht aber im R/3-Customizing möglich.
n Restnettodaueranpassung durch Rückmeldung: Die aktuellen Start- und Endezeiten einer Aktivität
sowie die zeitliche Länge einer Aktivität variieren oft von den geplanten Zeiten und Längen. Daher
können Sie wie folgt einstellen, ob und wie das System die geplanten Dauern einer Aktivität
anpassen soll an die aktuellen Daten:

Nicht anpassen,
linear anpassen: bei einer Rückmeldung von 50% der Vorgangsmenge beträgt die Restdauer 50%
der Vorgangsdauer
anpassen gemäß PPM-Plan: mit der Restmenge wird über die Terminierungsdaten im APO-PPM
die Restdauer ermittelt.

Typischer Prozessfluss in diskreter Fertigung
/Prozessfertigung: Auftragsänderung im R/3
R/3 APO
A A
Fertigungsauftrag
10 20 30 10 20 30
Ausgangssituation
Komponente B ist nicht
B C D APO-relevant C D
A A
Fertigungsauftrag
10 20 30 10 20 30
Komponente B2 (nicht
B, C, D C, D
APO-relevant) sowie C2
B2 C2 (APO-relevant) wird
C2
hinzugefügt
ã SAP AG 2001
n Customizing für Rückübertragung R/3-Auftragsänderungen bzw. Neuanlage R/3-Aufträge (nur für

Eigenfertigung) an APO-Fertigungsauftrag (Transaktion /sapapo/cp3):
nie
Änderungen immer zurückübertragen (Delta + Initialversorgung): Bei jeder Änderung am R/3-
Auftrag sowie erneuter Initialübertragung des Integrationsmodells für Aufträge werden die
Änderungen an APO rückübertragen.
Änderungen nur in Deltaversorgung zurückübertragen: Bei jeder Änderung am R/3-Auftrag (jeoch
nicht bei erneuter Initialübertragung des Integrationsmodells für Aufträge) werden die
Änderungen an APO rückübertragen.
n Empfehlung: Integration-Strategieprofil (globale Parameter im PP/DS-Customizing): Nutzen Sie
eine infinite Strategie für den Rückupdate von R/3-Auftragsänderungen/Neuanlage.
n Folgende R/3-Fertigungsauftragsänderungen werden im APO berücksichtigt bzw. übernommen:
Mengenänderungen Auftrag (für freigegebene Aufträge nur im R/3-Fertigungsauftrag durchführbar);
Auftrags/Vorgangsfreigabe; Nachlesen Stammdaten; Löschen Fertigungsauftrag: Technisch
abschliessen, Löschvormerkung (Wareneingang und Rückmeldung löscht APO-Auftrag nicht);
Auftrags/Vorgangsrückmeldung; Wareneingang zum Fertigungsauftrag; Arbeitsplatzaustausch
(Modusänderung im APO-Auftrag); Austausch alternativer Folge: Löschen der Vorgänge der
Stammfolge im APO-Auftrag, Hinzufügen Vorgänge der alternativen Folge im APO-Auftrag;
Alternative Modi im APO-Auftrag gehen verloren; Löschen und Hinzufügen APO-relevanter
Vorgänge; Umterminierung in R/3: Führt zu einer Reaktion im APO-Auftrag entsprechend im APO
eingestelltem Integrations-Strategieprofil (globale Parameter im PP/DS-Customizing); Austausch
Materialnummer in Komponentenübersicht; Mengenänderung Fertigungsauftrag oder
Komponentenmenge; Chargenbestimmung, Chargensplit; Änderung Lagerort; Löschen und
Hinzufügen APO-relevanter Komponenten; Löschen und Hinzufügen APO-relevanter
Kuppelprodukte/Nebenprodukte; Warenausgang (für einen Update der Reservierungen im APO-

Fertigungsauftrag müssen die Komponenten in einem aktiven Integrationsmodell für Reservierungen
enthalten sein)
n Folgende Szenarien werden z. Zt. Noch nicht unterstützt: Ändern Materialnummer der
Auftragsreservierung von APO-relevant auf nicht APO-relevant: Löschen und neues Hinzufügen
anstelle; dynamischer Auftragssplit; Teilumsetzung aus APO; Auftragsnetz; Auslaufsteuerung,
Alternativteileabwicklung, Auftragspuffer und Reduzierungsstrategien; umgleichmäßige
Kapazitätsbedarfsverteilung;

Typischer Prozessfluss in Fremdbeschaffung
Bezugsquellenermittlung im APO: Bestellanforderungen mit

ausgewähltem Lieferant werden erzeugt
Umsetzungs-Kennzeichen im APO setzen: Umsetzung
Bestellanforderung in Bestellung
Erzeugen Lieferavis im R/3
Buchen Wareneingang im R/3
ã SAP AG 2001
n Die Umsetzung von Bestellanforderungen in Bestellungen können Sie direkt im APO anstoßen,
indem Sie für die betreffenden Bestellanforderungen das Umsetzungskennzeichen setzen. Die
Aufträge, deren Umsetzung Sie im APO-System anstoßen, werden an das angeschlossene R/3-
System geschickt und dort automatisch umgesetzt. Die umgesetzten Aufträge werden mit geänderter
ATP-Kategorie (aus PReq für Bestellanforderung wird z.B. PchOrd für Bestellung) an das APO-
System zurückgeschickt.
n Das Erzeugen eines Lieferavis erfolgt im R/3: Sobald das Lieveravis im R/3 angelegt ist, wird dieses
automatisch in das APO-System übertragen. Die Einteilungen im APO werden daraufhin um die
avisierte Menge reduziert.
n Das Buchen des Wareneingangs erfolgt im R/3: Sobald der Wareneingang gebucht ist, wird dieser
Wareneingang automatisch in das APO-System übertragen. Der APO erhöht daraufhin den Bestand
und reduziert die Einteilungen.
n Das Lieferavis wird im APO (wenn es verwendet wird) um die Wareneingangsmenge reduziert.
Ebenso werden die Einteilungen entsprechend reduziert.
(C) SAP AG AP220 7-10

1 Course Overview

2 Products

3
ã SAP AG 2001
(C) SAP AG AP220 7-11

Special Case of REM Heuristics:
Possible Sequence in the Production Planning Run
Reqmts for product A Product B Plant
Final assembly Step 1: Final assembly

Heuristic Multi-resource planning
Line 1 A B Line 2 A B Selection: Production line 1 + 2
Assembly production Step 2: Final assembly production

Heuristic Multi-resource planning
Res. 3 Res. 4 Selection: Resource 3 +4
Component procurement Step 3: Component procurement

Heuristic SAP_MRP_001
Selection: Products
Product A Product B
REM heuristics =
Alternative to process control
heuristics SAP_MRP_001 and
SAP_MRP_ 002 for planning
requirements
ã SAP AG 2001
(C) SAP AG AP220 7-12

REM Heuristic for Multi-Resource Planning
SAP_REM_002 (Wave Algorithm)
Requirements Requirements
situation 16 h
Available capacity
Time
Horizon
Step 1: Planning direction Requirements

Backward
wave
Planned orders with scheduled capacity
Step 2: Planning direction Requirements

Backward Schedule
wave
Planned orders with scheduled capacity
ã SAP AG 2001
(C) SAP AG AP220 7-13

Example for Multi-Resource Planning (1)
l Products at the production lines
Product A Line1: Production rate = 100 pcs/week
Product B Line 2: Production rate = 100 pcs/week
l Requirements in the planning periods

0
Week 1 Week 2 Week 3 Week 4 Week 5
-50
-40 -30 -20
-50
-100 -80 -80
-150
-200
-190
-250 -230
-250
-260
-300
ã SAP AG 2001
(C) SAP AG AP220 7-14

Example for Multi-Resource Planning (2)
This would be the order situation after infinite scheduling

300
160
150
250 130
200 120
150
100 80 80 80
Order50situation after the REM
40 heuristic
30
run 50
0
L1 L2 L1 L2 L1 L2 L1 L2 L1 L2

120
100 100 100 100 100 100 100
100
80 80
80
60
60
40
20
0
L1 L2 L1 L2 L1 L2 L1 L2 L1 L2
ã SAP AG 2001 Line 1 (preferred resource)
(C) SAP AG AP220 7-15

REM Heuristics: Settings and Restrictions
l SAP_REM_001 - Multi-resource planning (equally)

l SAP_REM_002 - Multi-resource planning (primary
resource)
l Heuristics can be entered in the material master and in the

heuristic profile
l Restrictions for REM heuristics:

n One operation per PPM; if there are several operations,
only the operation at which stock receipt takes place
(output node) is considered
n Planning only at a low-level code
ã SAP AG 2001
(C) SAP AG AP220 7-16

Customizing for Heuristics (1)
Heuristics
Heuristics for
for - Planning run
production
production planning
planning - interactive planning

functions)
SAP_MRP_001:
Production planning
run by low-level codes
SAP_MRP_002:
Product heuristic
l Customizing for process control heuristics
ã SAP AG 2001
n Customizing for process control heuristics:

Planning mode: If a product is planned in the regenerative planning run or the net change
planning run, the planning mode controls how existing orders are handled:
- Change planning: Only new requirements are planned; requirements that have already been
planned by receipts are not planned again.
- Regenerative planning: All requirements of the product are planned again; any existing unfixed
receipts are deleted and created again.
- Re-explosion of the planning data: All fixed and unfixed orders are exploded again (PPM
explosion), however, there is no new net invoice.
- Re-explosion and regenerative planning: All requirements of the product are planned again; any
existing unfixed or fixed receipts are deleted and created again.
Sort low-level codes in descending order indicator: You set this indicator to realize an inverted
planning run (bottom up). To keep process control from reading the lot-sizing heuristic from the
product master and instead reading a service heuristic, you choose service heuristic and not
heuristic from product master.
Perform single-level planning indicator: Difference between SAP_MRP_001 and
SAP_MRP_002.
Maximum package size: Products are planned in packages in a transactional simulation mode
(Sim-session, buffer). After planning in this simulation mode, the changes are moved back to
operative planning (merge). A package can contain several products of the same low-level code,
product master heuristic, and planning file entry. The maximum package size is 5, however, a
maximum package size of 1 is recommended. The maximum package size for a product is only
valid if Heuristic and not Part of package is select in the product master (PP/DS view).
(C) SAP AG AP220 7-17

Parallel processing indicator: In this case, along with planning on the APO application server (on
which the liveCache may also be installed) further processing takes place on a different
application server (settings in Customizing for PP/DS, under Destinations for Parallel Processing.
Two dialog processes may be started per server). Splitting is always done per low-level code.
Since, in finite scheduling, server A does not directly see the resource load that server B generates,
the planning result may lead to capacity overload. Therefore, parallel processing is not
recommended in finite scheduling, but only in infinite scheduling.
(C) SAP AG AP220 7-18

Customizing for Heuristics (2)
To be entered in the Heuristics

Heuristics for
for -Planning run
material master production
production planning

functions)
Static, Optimizing SAP_PP_008:

SAP_PP_012:
periodic procedure Rescheduling:
Bottom up Konti-IO
Planning with
standard lots
Purchase order
qty optimization
... ...
... ...
l Customizing for lot-sizing heuristics
l Customizing for service heuristics
ã SAP AG 2001
n Customizing for lot-sizing heuristics:

Sorting procedure field: In this field you can determine the sequence in which orders are
scheduled. The sorting procedure is important for finite planning, where orders are only scheduled
if there is sufficient available capacity. The following entries are possible: "blank" = Time in
ascending order: Here the requirements are planned in sequence, from today's date into the future;
"1" = first order priority, then time in ascending order: Here the requirements (sales orders) witht
the highest priority are planned first, and if the requirements have the same priority, the rule is
"time in ascending order".
Consider desired quantity indicator: Specifies that the desired quantities/dates are to be the basis
for requirements calculation, and not the confirmed ones.
Write evaluations indicator: You can display a planning evaluation in the product view, by
choosing Goto -> Heuristic evaluation.
n Concept of package heuristics (product master, PP/DS tab): Groups different products that are to be
planned using the same heuristics.
Products are often not to be planned independently of each other. You can use the planning package
to define which products are to be planned together with which heuristics. For these purposes,
special package heuristics are available:
All products that are to be procured from the same supplier
All products that are produced at the same production line
All products that are produced together in one production process (main product and co-product)
(C) SAP AG AP220 7-19

Global PP/DS Settings in the Planning Version
l PP/DS Change planning active

l PP/DS Automatic planning active
l PP/DS No order without source of supply
l PP/DS Standard planning horizon
l PP/DS Determine priority (order priority)
l PP/DS Consider safety stock
ã SAP AG 2001
n You can make the following global settings for each planning version in planning version
management:
PP/DS Change planning active indicator: If automatic planning has been set for the product in the
product master, a planning file entry is created for each relevant change in PP/DS (such as a new
requirement) so that the product can be planned again in the next planning run with net change
planning.
Use: You set this indicator if you want to work with PP/DS in this planning version. However, if
you do not want to plan with PP/DS, do not set this indicator.
PP/DS Automatic planning active: If this indicator is set, planning is performed for each product
for which automatic planning immediately is set in the product master. If this indicator is not set,
only a planning file entry is generated for this product, so that the product can be planned again in
the next planning run with net change planning.
PP/DS No order without source of supply indicator: If this indicator is set, no order is created for
a product in PP/DS if a valid source of supply cannot be found. If this indicator is not set, an order
is created without requirements and operations if a valid source of supply cannot be found for a
product.
PP/DS: Standard planning horizon (days) field: You can enter the number of days (in the future),
starting from the current date, on which product receipts and product requirements are to be
planned using production planning and detailed scheduling. You can also define a production
horizon in the product master. The production horizon entered in the product master has priority
over the parameters defined in the planning version. SNP performs planning outside of the
production horizon.
PP/DS: Determine priority (order priority) field: ("blank" = for make-to-order planning from
sales order, otherwise from product, "1" = always inherited from requirement, "2" = always
inherited from product): In make-to-order planning, the priority is always inherited from the sales
order. In make-to-stock production, the priority is taken from the product master.
(C) SAP AG AP220 7-20

The priority is always taken from the requirement. This is the case for all production levels, even
for make-to-stock production. In make-to-stock production, there is usually no lot creation.
Requirements with different priorities can be covered by a single receipt element. In this case, the
priority of the receipt element can be different from the priority of the requirements element.
PP/DS: Consider safety stock field ("blank" = not considered, "1" = do not delete orders if they
cover safety stock, "2" = schedule orders again if safety stock is not covered. For more
information, see the F1 help in the field.
(C) SAP AG AP220 7-21

Product - Underdelivery/Overdelivery Tolerances
l Tolerances maintained in product master (Demand tab)

l Tolerances for finished products can be taken from customer
order
l Indicator for pegging of the
total quantity
Reqmt Reqmt
100 pieces 100
Can be pegged Must be completely

(underdelivery pegged
tolerance) (overdelivery
tolerance)
95 105
Order/ Order/
stock stock
ã SAP AG 2001
n In product master tolerances for over- and underdelivery can be maintained. That means that a
pegging is been build if the quantity fits to the range.
n Underdelivery tolerance limit: The tolerance level in percent of how much less of an order quantity
may be delivered. Delivery tolerances are often required in a make-to-order environment where
every customer has different requirements. If the batch size is slighty smaller than the order quantity,
the customer may tolerate, for example, 5% less than they ordered.
n Overdelivery tolerance limit: The tolerance level in percent of how much more of an order quantity
may be delivered. Delivery tolerances are often required in a make-to-order environment where
every customer has different requirements. If the batch size is slighty larger than the order quantity,
the customer may tolerate, for example, 5% more than they ordered.
n Consume total stock indicator: Pegging takes only place between stock and requirement if the stock
can be completely pegged with the requirement: Example: Stock of 12 pieces, requirement element
of 10 pieces. Pegging will not take place, because stock would not be pegged completely with the
requirement element. Exception: If you have maintained an overdelivery tolerance limit of 20 %,
then the stock would be pegged for the requirement element. A overdelivery for the requirement
element would be carried out.
n Consume total order quantity indicator: Pegging takes only place between order and requirement if
the stock can be completely pegged with the order: Example: order of 12 pieces, requirement
element of 10 pieces. Pegging will not take place, because order would not be pegged completely
with the requirement element. Exception: If you have maintained an overdelivery tolerance limit of
20 %, then the order would be pegged for the requirement element. A overdelivery for the
requirement element would be carried out.
n Use: metal, paper, wood industry. Example: Steel coil of 100 tons can not be devided for pegging
reasons. Pegging has to be carried out for the total quantity.
(C) SAP AG AP220 7-22

Planning and Scheduling Log
Planning log:
Application log for errors in planning in ABAP as well as
information messages in planning (for example, errors
during order creation, PPM is not valid, planning run has
started)
Scheduling log:
Application log for errors in scheduling in the LiveCache
as well as information messages on scheduling in the
LiveCache (for example, rescheduling an order)
ã SAP AG 2001
n The system automatically generates a planning log or a scheduling log for a planning run or planning
session (for example, with the product view or detailed scheduling planning board). You call up the
logs by choosing Production Planning -> Reporting -> Planning Run Reporting.
The system collects messages that it generates in interactive scheduling or in the production
planning run in the planning log.
In the scheduling log, the system collects information relevant for scheduling that it generates in
interactive scheduling or in the production planning run during scheduling. This may include
scheduling problems at the resources, or quantity and product-related information in the planning
log on, for example, missing components.
n Termination of scheduling: In complex scheduling situations in which many constraints and
dependencies must be considered, the duration of scheduling can be very long. The system is set
internally to terminate scheduling after 10 minutes. You can set another maximum scheduling
duration in the strategy profile.
(C) SAP AG AP220 7-23


Procurement type
PPM explosion
Scheduling
ã SAP AG 2001
n The net requirements calculation is the first step in the production planning run:
The system checks whether the requirements (for example, sales order, planned independent
requirements) can be covered by available warehouse stock or by receipts (orders).
(C) SAP AG AP220 7-24

Quantity and Time-Based Floats
Quantity float
Static safety stock

Dynamic safety stock planning from SNP
Time float
Safety days' supply (R/3: safety time)

Target days' supply
ã SAP AG 2001
n To take uncertainty in requirements development into account, there are different options for
scheduling floats:
As a quantity float: safety stock, dynamic safety stock planning in SNP
As a time float: safety days' supply, target days' supply
n For more information on quantity and time-based floats, see the appendix.
n As a quantity buffer, you not only can enter a static (time cannot be changed) safety stock, but can
also work with dynamic safety stock planning when using Supply Network Planning (SNP). Safety
stocks that vary in time can be determined here in connection, for example, with the requirements
situation (the service level, for example, which is not used anywhere else in PP/DS, is used to
calculate in the APO product master).
The safety stock calculated in SNP can also be used in Production Planning and Detailed Scheduling
as well as in Capable-to-Match if this has been set in Customizing for PP/DS under Make SNP
Figures Available.
(C) SAP AG AP220 7-25

Static Safety Stock
Stock
MRP Requirement
available
stock
Safety stock
Receipt
Safety stock
(is not available for MRP) Time
R/3 Product A
APO
Mat. A Lot size
Safety Safety stock 30 pcs

stock
ã SAP AG 2001
n Static safety stock: For each requirement for which the MRP available stock is not sufficient, the
production planning run generates a procurement element to procure the quantity that is required.
The safety stock, as an MRP not available stock, does not go into the net requirements calculation.
n This type of safety stock is independent of the requirements quantities, and is therefore static.
n You cannot make a percent of the safety stock available. The production planning run fills the safety
stock again when there is a shortage as soon as there is even a slight shortage.
n Prerequisite: In the MRP 2 view of the R/3 material master, you define the niveau of the safety
stock. This is transferred to the Safety stock field in the product master (Lot size view) via the R/3-
APO interface.
(C) SAP AG AP220 7-26

Safety Days' Supply
4 June 6 June
Receipts
Time
Reqmts Safety days' supply: 2 days
R/3 Product A
APO
Mat. A Lot size
Safety time Safety days' supply 30 pcs
Safety time for independent requirements as well as dependent

ã SAP AG 2001 requirements
n The safety days' supply is a safety time/safety buffer (compared to lead-time offset/preliminary time
in the component data of a BOM item). Its purpose is to avoid problems with production supply
which may be caused, for example, by late deliveries.
n The safety days' supply causes the procurement proposals to be placed before the requirements dates
by the specified number of workdays. The actual requirements dates are not changed. This ensures
that the warehouse stock of a product can cover the requirements without new receipts.
n Example: Requirement for 100 pieces on 6 June, safety days' supply = 2 days, receipt is created with
4 June as the availability date
n Prerequisite: In the MRP 2 view of the R/3 material master, you define the safety time. This is
transferred to the Safety days' supply field in the product master (Lot size view) via the R/3-APO
interface.
(C) SAP AG AP220 7-27

Target days' supply
Target days' supply

of 5 days
4 June 6 June 8 June 9 June
Receipts
Time
Reorder days' supply
Reqmts of 2 days First requirement
on the time axis
Product A
Lot size
APO
Procedure
Order point
Reorder point proc. Reorder days' supply 2
Quantity
determination
2 Target days' supply 5
Target stock level procedure
ã SAP AG 2001
n Target days' supply: Number of days that the warehouse stock and the planned receipts of a
material are to last to cover the requirements existing at the time of planning within a specified
interval (called the target days' supply). However, this interval (target days' supply) is not calculated
starting from the chronologically first requirements element, but rather the interval already begins a
defined number of days (reorder days' supply) before each requirement. All of the requirements are
read within the target days' supply. In lot-size calculation the amount of the generated procurement
elements is increased so that all requirements are covered within the interval and the days' supply is
ensured (via the number of days defined in the target days' supply interval). This is called the lot-
sizing procedure reorder point. If you want to generate deviating order quantities, you can also work
with rounding possibilities (for example, rounding value, minimum lot size).
For the requirement that is chronologically next on the time axis, the system proceeds in the same
way. If, in this case, there are target days' supply requirements in the overlapping next interval for
which an order was already generated, they are not taken into account again. This allows
overproduction to be avoided and is ensured via the link (pegging) of requirements and receipts.
n Prerequisite: Choose Reorder point procedure in the Lot size view of the APO product master.
Choose reorder point procedure 2 (reorder days' supply from location product master), since the
other reorder point procedures are not support in PP/DS at this time. Enter the number of days for the
reorder days' supply. Choose target stock level procedure "blank" (target days' supply from product
master), since the other target stock level procedures are not support in PP/DS at this time. Enter the
number of days for the target days' supply.
The reorder days' supply and the target days' supply are only used by the lot-sizing procedure
reorder point.
n Target stock level procedure: blank (target days' supply from product master), 1 (target days' supply
(time-dependent maintenance)), 2 (target stock level (time-dependent maintenance)), 3 (maximum
from TS/TD (time-dependent maintenance)), 4 (target stock level equals prod. stock capacity), 5
(maximum from prod. stock capacity/TD), (product master)), 6 (total from prod. stock capacity/TD
(product master)), 7 (no target stock level)
(C) SAP AG AP220 7-28

n Reorder point procedure: 1 (reorder point from location product master), 2 (reorder days' supply
from location product master), 3 (maximum from RP and RD from location product master), 4
(reorder point (time-dependent maintenance)), 5 (reorder days' supply (time-dependent
maintenance)), 6 (maximum from RP and RD (time-dependent maintenance))
(C) SAP AG AP220 7-29

Procurement type
PPM explosion
Scheduling
ã SAP AG 2001
n In the net requirements calculation, the system determined the shortage quantities for the
requirements dates. These shortage quantities must be covered by receipt elements. The system
specifies the number of receipts during a planning run in lot-size calculation.
n You determine how the lot sizes are calculated by choosing a lot-sizing procedure in product master
maintenance.
n The result of the lot-size calculation is the quantity to be produced or procured. You can display and
change the procurement quantity in the procurement proposal.
(C) SAP AG AP220 7-30

Rounding in Lot-Size Calculation (2)
Rounding profile: Scaled roundings can be represented using the rounding

profile
Rounding Threshold Rounding Requirement Procurement
Level
profile value value proposal qty
DEMO 1 2 5 1 1
DEMO 2 32 40 2 5
6 10
7 10
21 25
31 35
32 40
41 45
74 80
R/3 Product A
APO
Mat. A Lot size
APO Customizing:
Rounding Rounding profile 0001 Is the rounding
profile
profile known?
ã SAP AG 2001
n Rounding profile: Scaled roundings can be represented using the rounding profile.
A rounding profile can contain threshhold values and rounding values in different levels. The
rounding value is the value that the system rounds up to as soon as the threshold value has been
exceeded. If the threshhold value is not reached, the system rounds to the next smaller level. If the
smallest level is reached, the system rounds to a multiple of the rounding value if the requirements
quantity is larger than the threshhold value. Otherwise the requirements quantity is not changed.
n Example: The order is to be in layers (1 layer is equal to 5 pieces) or pallets (1 pallet contains 8
layers that each contain 40 pieces).
Therefore, the following rounding profile is defined: level 1: 2 -> 5, level 2: 32 -> 40:
If a requirement is above 2 units, the system rounds up to 5, if a requirement is above 32 units, the
system rounds up to 40. If the requirement is below the first threshold value, the original
requirements value remains the same. If the first threshold value is exceeded, the system always
rounds up.
n Prerequisite: You define a rounding value in the MRP 1 view of the R/3 material master. The
rounding profile is transferred to a field of the same name in the APO product master (Lot size view)
via the R/3-APO interface. You define the rounding value in R/3 Customizing for Material
Requirements Planning or in APO Customizing under Master Data -> Product in the IMG activity
Maintain Rounding Profile. The R/3 Customizing data for the rounding profile is not transferred via
the R/3-APO interface. The definition of the rounding profile must therefore be transferred to APO
Customizing separately.
(C) SAP AG AP220 7-31

Scrap: Business Scenario
l Scrap may be produced during the manufacture of

materials.
Technologically justified scrap is to be planned in
your company so that the desired output quantity is
of the required quality and is available at the end of
a production cycle.
Scrap that cannot be planned must be removed,
causing additional production and material effort.
ã S
ã SAP AG S2001
P AG
(C) SAP AG AP220 7-32

Scrap Types that Can Be Planned and their Effect (1)
Assembly scrap
-- Increased
Increased total
total quantity
quantity of
of the
the order
order
-- Increased
Increased net duration and resource
net duration and resource consumption
consumption of
of activities
activities
-- Increased requirements quantity of all components
Increased requirements quantity of all components
-- Maintained
Maintained in
in product master of
product master of the
the finished
finished product/assembly
product/assembly
ã SAP AG 2001
n If scrap is produced during the manufacture of a product, the quantity to be produced must be
increased accordingly to reach the desired yield quantity. Scrap that can be planned is integrated in
planning, production, and material calculation (R/3). You can model scrap planning in different
ways. The different scrap types have different effects:
n Scrap at assembly level (assembly scrap): In the product master (Lot size tab), you describe how
much scrap is produced during the manufacture of a product, depending on the production process. If
scrap is produced, a larger quantity must be produced to reach the required yield. The system
performs the quantity checks automatically.
The system calculates the total quantity to be produced from the desired yield and assembly scrap,
based on the following formula:
Total quantity = Yield x 100% / (100% - Scrap in %)Example: You create an order and enter 100
pieces as the yield. You have entered an assembly scrap of 20% in the product master. The system
therefore generates an order for 125 pieces.
Along with the total quantity, the following is also increased accordingly:
- The quantity of the components required to produce the product
- The net duration of activities for quantity dependent processing time
- The resource consumption of activities for quantity-dependent resource consumption
n The scrap calculation is only relevant for products produced in-house. The system performs scrap
calculation automatically using the desired yield and the scrap data and increases the quantity to be
produced and the component requirements. It is a good idea to use the procedures above
alternatively, since otherwise too much scrap is calculated.
(C) SAP AG AP220 7-33

Scrap Types that Can Be Planned and their Effect (2)
Activity scrap
- Decreases operation quantity of operations that follow
- Increases net durations and resource consumption of activities
- Increases requirements quantity of components
- Maintained in PPM
ã SAP AG 2001
n Scrap at activity level (activity scrap): Here you describe in detail how much scrap is produced per
processing step. This allows you to model scrap depending on the production process.
n If scrap is produced for an activity, the activity must process a larger quantity to get the required
yield. The activity therefore consumes more components. For quantity-dependent processing times
and quantity-dependent resource consumption, the net duration and the resource consumption of the
activities increase. The activity scrap therefore influences APO scheduling as well as costing in the
R/3 production order.
The system performs the quantity corrections when exploding the PPM and calculates the total
quantity to be produced by an activity according to the following formula:
Total quantity = Yield x 100% / (100% - Scrap in %)
n You can specify the following for the yield to be staged by the activity in the PPM:
It is the order quantity. The total quantity of the activity is calculated based on the order quantity.
It is the yield required by the successor activity. If a successor activity must process a certain total
quantiy, this total quantity must be delivered by the predecessor activity as the yield. This allows a
scrap-related quantity increase to be passed on to the predecessor activity.
n Prerequisites:
In the production process model of the product, you have entered the scrap in percent for the
activities that produce scrap.
To allow a scrap-related quantity increase for an activity to be transferred to another activity, you
must have set the Material flow indicator for the relationship between these activities.
n You should either define scrap at assembly level or activity level, otherwise too much scrap is
calculated!
(C) SAP AG AP220 7-34

Activity Scrap with or without Material Flow
Activity scrap
l Activity scrap with material flow

l Activity scrap without material flow
ã SAP AG 2001
n Activity scrap: The scope of function is described using the following examples:
n Scrap without material flow: An order includes three consecutive operations that consist of one
processing activity (three activities). You have not set the Material flow indicator for the
relationships between the activities, that is, the activity quantities are to be calculated for each
activity individually, based on the order quantity. You have entered the following scrap data for the
activities:
Scrap for activity 1: 5%, scrap for activity 2: 7%, scrap for activity 3: 5.5%
The quantity to be produced for the order is 100 pieces. The system uses this data to calculate the
quantities to be processed or required in the activities:
Quantity for activity 3: 100 pieces / 0.945 = 106 pieces, quantity for activity 2: 100 pieces / 0.930
= 108 pieces, quantity for activity 1: 100 pieces / 0.950 = 105 pieces
n If each of the activities requires special components, these components must be staged according to
the activity quantities, for example, 105 pieces for activity 1, 108 pieces for activity 2 and 106 pieces
for activity 3.
n Scrap with material flow: Example as above except that you have set the Material flow indicator
for the relationships between the activities, which means the quantity to be processed in an activity is
to be staged as yield by the higher-level activity. You have entered the following scrap data in the
PPM for the activities:
Scrap for activity 1: 5%, scrap for activity 2: 7%, scrap for activity 3: 5.5%
The quantity to be produced for the order is 100 pieces. The system uses this data to calculate the
activity quantities:
Quantity for activity 3: 100 pieces / 0.945 = 106 pieces, quantity for activity 2: 100 pieces / 0.930
= 106 pieces, quantity for activity 1: 114 pieces / 0.950 = 120 pieces
(C) SAP AG AP220 7-35

n For the order to deliver 100 pieces, the first activity must process 120 pieces, the second 114 pieces,
and the third 106 pieces. The components must be staged according to the activity quantities, for
example, 120 pieces for activity 1, 114 pieces for activity 2 and 106 pieces for activity 3.
(C) SAP AG AP220 7-36

Procurement type
PPM explosion
Scheduling
ã SAP AG 2001
procured via in-house production or external procurement.
n Note on planning externally procured products in APO: You can use planning tools and planning
functions such as finite scheduling of products (including externally procured products) and
heuristics for optimizing order quantities, to efficiently plan materials that are critical in APO and
procured externally. You can use purchasing information that is available in the APO System to
improve cooperation between the plant and suppliers. When processing scheduling agreements, for
example, you can send releases to suppliers directly by e-mail or have the supplier confirm the
releases via the Internet. Another advantage of planning externally procured products in APO is that
you can use resources to schedule externally procured orders in production planning and detailed
scheduling. This allows you to exactly schedule goods receipts, tranportation, and goods issues while
taking capacity into account.
(C) SAP AG AP220 7-37

Quota Arrangements (with and without Splitting)
Sources of supply (for example,

suppliers) A B A B
Quota arrangement
Receipt without splitting
40 40 40 40
(assignment quota
arrangement)
40 40 40 40 Time
Requirements
Sources of supply (for example,

suppliers)
A A A A
Quota arrangement
Receipt with splitting
20 B 20 B 20 B 20 B
20 20 20 20
40 40 40 40 Time
Requirements
ã SAP AG 2001
n If a material is to be drawn from different sources of supply, the individual sources of supply can be
assigned a quota. This quota is valid for a certain time period and specifies how the receipts are to be
distributed among the individual sources of supply.
n You can use quota arrangements in in-house production as well as in external procurement. Sources
of supply may be, for example: a supplier or outline agreeement, a different plant from which you
procure or certain production process models.
n There are two quota arrangement procedures available:
Each lot is assigned to exactly one source of supply
One lot is split among different sources of supply
n In addition, the quota arrangement can be fine-tune controlled by further functions:
Combination of requirements: Specifies for which time period a requirement is combined for the
quota arrangement.
Minimum splitting quantity: If a requirement is split based on a quota arrangement, each
individually distributed requirements quantity must at least correspond to the predefined minimum
quantity.
n Prerequisites:
You have defined the quota arrangement header and the quota arrangement items for the
corresponding suppliers/plants (you maintain this via the Supply Chain Engineer or the menu).
In general, the quota arrangement runs as the assignment quota arrangement (without splitting).
However, if you want to use the quota arrangement with splitting, you must choose a special quota
arrangement heuristic (SAP_PP_Q01) for the product in the product master. In this case, a split is
performed for the individual quota arrangement items, which are then planned with the heuristic
(C) SAP AG AP220 7-38

entered in the quota arrangement item. If no quota arrangement is maintained in the quota
arrangement item, the system uses the heuristic you defined in Customizing for PP/DS.
(C) SAP AG AP220 7-39

Example for Quota Arrangement without Splitting
(Assignment Quota Arrangement)
Quota allocated quantity + (quota base)

Quota rating =
Quota
Requirement 1: 1000 pieces / lot-sizing procedure: exact lot size
Source Quota Quota Quota Quota

of supply alloc. qty base rating
A 25 500 - 20
B 75 3000 - 40

Source Quota Quota Quota Quota
of supply alloc. qty base rating
A 25 1500 - 60
B 75 3000 - 40
ã SAP AG 2001
n This procedure assigns each lot exactly one source of supply, if you have not defined a maximum lot
size in the product master.
n The order proposal is completely assigned to the source of supply which has the smallest quota
rating. The quota rating specifies the sequence in which the sources of supply are used.
n The quota rating is calculated according to the following formula:

Quota rating = quota allocated quantity (+ quota base quantity) / quota
n The quota allocated quantity is the total quantity for which the sources of supply have been
procured.
n You can use the quota base to control the quota arrangement without having to change the quota
arrangement, for example, if a new source of supply is to be added to the quota arrangement. In
contrast to the quota allocated quantity, this quantity can only be maintained manually and is used to
balance the individual items when changes have been made to the quota arrangements.
n The quota is a proportion weighting that specifies which part of a requirement is to be taken by a
source of supply.
(C) SAP AG AP220 7-40

Example for Quota Arrangement with Splitting
Quota source of supply X * open requirements quantity
Sum of all quotas that are still open
Source of supply Quota Additional qty

based on formula
A 40 400
B 30 300
C 20 200
D 10 100
ã SAP AG 2001
n You can using the splitting quota arrangement to split procurement among different sources of
supply.
n Calculating the additional quantity: the additional quantity is calculated as follows:
(Quota source of supply X * requirements quantity) / sum of all quotas
n The quota allocated quantity of a quota arrangement item or the quota rating also plays a role for the
splitting quota. Splitting takes place in the following sequence: first the system checks whether the
individual sources of supply have received their quotas. If this is not the case, the system assigns the
quantities based on the assignment quota arrangement. If there is a balance due to the quotas, the
system automatically switches to splitting quota arrangement (calculated via the average deviation
from the medium value of the quota ratings): The quantity is then calculated according to the
formula above using the quota.
n Determining a minimum quantity for splitting: The minimum quantity for the splitting quota
specifies the minimum quantity that a lot must have to be split.
If the requirements quantity is less than the minimum quantity, the source of supply that is next
based on the quota calculation is selected, that is, the allocation quota arrangement logic is used and
not splitting. However, if this causes the minimum quantity for splitting for a source of supply to be
exceeded, a new splitting can be used.
Note: Splitting technically occurs via requirements, even if the result of splitting is split orders and
not split requirements.
(C) SAP AG AP220 7-41

Quota Arrangements: Master Data Maintenance
Supplier Miller Supplier Smith
Incoming quota 60 % 40 %
arrangement
Plant
Stuttgart
Outgoing quota 40 % 30 % 30 %
arrangement
Distribution Center Distribution Center Distribution Center

Munich Frankfurt Mainz
Incoming quota arrangements (quota arrangement for incoming

transportation lanes) with sources: locations, PPMs, ...
Outgoing quota arrangements (quota arrangements for outgoing
transportation lanes) with target location: target location of
ã SAPtransportation
AG 2001 lanes
n There are incoming and outgoing quota arrangements, depending on whether you consider the
perspective of the source location or the target location:
Incoming quota arrangements: The target location of the transportation has been specified. A
quota arrangement specifies for a material the quantity (proportionally) that is to be transported
from possible source locations. Possible source locations are all locations that are the starting point
for a transportation lane to a target location.
Outgoing quota arrangements: The start location of the transportation has been specified. A
quota arrangement specifies for a material the quantity (proportionally) that is to be transported to
target locations. Possible target locations are all locations to which a transportation lane, starting
from the start location, has been specified.
n How quota arrangement items are planned depends on whether or not you have defined that the
quota arrangement heuristic is to be used to plan the product in the product master.
If you have defined this heuristic for the product, the requirements are split among the quota
arrangements. All quota arrangement items are planned separately based on the heuristic you have
defined in the Supply Chain Engineer. Since the system plans each item separately, it can
consider planning parameters, such as the lot-sizing procedure, procurement times, rounding
profiles or supplier calendars of the different sources of supply.
If you have not defined a quota arrangement for the product, the system first creates lots and then
distributes them among the different suppliers/plants during source of supply determination. You
cannot take the above planning parameters into account for this method. If you want to plan the
quota arrangement items individually, you must therefore define the quota arrangement heuristic at
product level.
(C) SAP AG AP220 7-42

Subcontracting
Planning Components to be Provided Product A

Provision of
material to
subcontractor
Product C Product B
Req. of material to be
Stock of material
provided/stock transfer
Subcontractor A
Delivery /
provided
Goods
receipt
Own plant
Req. of material to be
Subcontractor B provided/stock transfer
ã SAP AG 2001
n Subcontracting is a type of procurement in which a producer orders a product from a

supplier/subcontractor, and this person then delivers it with certain components that are required to
produce the ordered product. In APO, subcontracting is realized using stock transfers. To allow for a
stock transfer in both directions, you define a subcontractor as the location and specify a transportion
lane between the plant and subcontractor.
n Prerequisite: You have created all of the following required master data:
You have created a transportation lane from the supplier to your plant for the ordered products in
the Supply Chain Engineer, and have set the source of supply type indicator to X for External
procurement with subcontracting.
For the product to be provided, you have created a transportation lane from your plant to the
supplier in the Supply Chain Engineer.
In the location of the supplier, you have maintained the master data for the products as well as
the production processs model and assigned the active model to it.
n Note the following: If you want to create a subcontracting purchase requisition in R/3 for a product
planned in APO, you must enter a supplier for it, otherwise it cannot be transferred to the APO
System.
(C) SAP AG AP220 7-43

Subcontracting: Process (1)
1. Plant (location 1000) Subcontractor (location 2000)

Source of supply for assembled
casing (product A) determined
Requirement for assembled casing (includes two Planned order for assembled casing
component casings as well as screw) (product A) generated
Order for stock transfer of assembled casing (product A)

from subcontractor to plant generated
2. Plant (location 1000) Subcontractor (location 2000)
Source of supply for

assembled casing (product B)
determined
Order for stock transfer of component casing

(product B) from plant to subcontractor generated Planned order components casing
(product B) and screws (product C) are
planned
ã SAP AG 2001
n Subcontracting process in system:

A requirement for an ordered product must be covered. During planning, the system determines
the source of supply for this product and finds a transportation lane to the supplier in APO. For
this transportation lane, the External procurement with subcontracting indicator is set.
In your plant, the system generates a stock transfer order from supplier (subcontractor) to your
plant.
In the location of the supplier, the system searches for a valid PPM and uses it to generate a
planned order for the ordered product in the location of the supplier. This allows the dependent
requirements for the planned order of the supplier to be planned. The system determines the source
of supply and finds a transportation lane back to your plant. The system generates a stock transfer
order from the plant to the supplier for the product to be provided. Planning in APO is then
complete.
(C) SAP AG AP220 7-44

Subcontracting: Process (2)
3. Plant (location 1000)

Subcontractor (location 2000)
Plant delivers component casing (product

B) to the subcontractor
Subcontractor delivers the ordered

product to the plant (assembled casing,
product A)
ã SAP AG 2001
6. When you save the planning results in APO, the orders are transferred to the R/3 System. The
R/3 System generates a subcontracting purchase requisition. The planned order at the supplier and
the stock transfer order in your plant are assigned the same number as the subcontracting purchase
requisition in the R/3 System.
7. The order is executed in the R/3 System. Subcontracting purchase requisitions created in APO
are treated the same way as those created in the R/3 System:
a. You convert the subcontracting purchase requisition to a subcontracting purchase order.
b. You post the transfer from normal stock to subcontracting stock in the R/3 System.
In the R/3 System, the stock is considered special stock since it is still classified in the plant.
The same stock is considered normal stock in the APO System, since it is in the location of the
supplier.
c. The ordered product is manufactured by the supplier and delivered to the ordering party. You
post a goods receipt in R/3 for the subcontracting order. The component stock is reduced
automatically when the ordered product is posted as a goods receipt.
If you only post a goods receipt for part of the order, the order quantity is automatically reduced in
the APO System and in the R/3 System accordingly.
(C) SAP AG AP220 7-45

Subcontracting without a Source Location
l Subcontracting without a Source Location
ã SAP AG 2001
n There are two ways to plan subcontracting in APO - with and without a supplier. When planning
with a supplier, the production order is generated at the supplier, and when planning without a
supplier, the production order is created in the target location. The main difference is in how the
product to be provided is planned. When planning with a supplier, the requirements and stocks of the
product to be provided are effective in the source location and can be planned (MRP) for each
supplier individually. When planning without a source location, however, the requirements and
stocks are only effective for MRP in their own plant. You cannot plan the transportation of products
to be provied to the suppliers.
n It is a good idea to use subcontracting without planning in the source location if the products to be
provided are not to be planned individually and if only one supplier is available per product. If
planning takes place in R/3, a production process model (PPM) must not exist in APO. In this case,
nothing must be maintained manually in APO.
n Prerequisite: The product may not be maintained in the source location.
n The following master data must be created:
• For the ordered products, a transportation lane must be created from the supplier to your plant. The
source of supply type indicator must be set to external procurement with subcontracting.
• In the target location, a PPM must be created. In addition, at least one operation and one resource
must be available for the PPM. Both must be assigned to the model and the PPM must be active. If
a routing exists in R/3, the PPM can also be created via CIF. You can also create a routing with a
dummy work center in R/3 and then create the PPM via CIF.
n Process:
A subcontracting purchase requistion is created in a planning run or manually. This is represented
in APO by a transport order and a planned order. Both orders are assigned the number of the
purchase requisition in R/3. The purchase requisition has the components from the planned order
in R/3.
(C) SAP AG AP220 7-46

The purchase requisition is converted to an order in R/3. In APO, the purchase requisition is
deleted and the order takes its place. Two orders are also created for the order.
A transfer posting is made for the product to be provided to subcontracting special stock. This is
effective for MRP like normal stock in its own plant.
A goods receipt is posted to an order. In APO, the order quantity is reduced by the goods receipt
quantity, the product to be provided reduced, the product to be provided is debited from the stock
of material provided to the supplier, and the stock for the finished product is increased.
(C) SAP AG AP220 7-47

Procurement type
PPM explosion
Scheduling
ã SAP AG 2001
n The system plans the orders in the following way:

For external procurement, the planned delivery time of the product is determined from the supply
relationships maintained in APO.
For in-house production, the APO system explodes the PPM and performs detailed scheduling to
determine the dates for the order.
- When PPMs are exploded for products, the system determines component requirements as well
as the net duration and the resource consumption of the activities. The assembly scrap is taken
into account when the component requirements are determined.
- The activities are scheduled at the resource so that the requirements data of the components can
be determined. The system takes the settings maintained in the strategy profile into account
when scheduling, which means it considers the contraints defined, such as component
availability and resource capacity.
There are two types of resources: bottleneck resources and non-bottleneck resources. There are
usually only a few bottleneck resources in a production plant and the rest are non-bottleneck
resources. For each resource you can specify finite or infinite scheduling. In most cases you will
only perform finite scheduling for bottleneck resources. Additionally you can still schedule those
resources finitely that you suspect to be bottleneck resources. For non-bottleneck resources you
usually use infinite scheduling.
Constraint violations, such as a customer requirement date not being met or the capacity of a finite
resource being exceeded, are displayed as Alerts. The planner can change the scheduling results
manually.
(C) SAP AG AP220 7-48

Selection of Alternative Resources (Mode
Selection)
PPM Product A Selection of modes

is dynamic for
Operation 10: Pre-assembly scheduling/optimization
Activity: Setup Alternative resources in alternative modes
Operation 20: Paint
ã SAP AG 2001
n Resource selection when using alternative resources: You can enter several alternative resources
in the PPM (via alternative mode maintenance) at which the activities can be executed.
n Prerequisites: You have maintained more than one mode for each activity in an operation in the
PPM. You have assigned the same priority to modes that are linked.
(C) SAP AG AP220 7-49

Selection of Alternative Resources Taking the
Lowest Mode Priorities into Account (1)
Resource 3 (mode priority 2) is an alternative resource for the resources 1 and 2

(each with mode priority 1).
Resource 3 must be used first if resouces 1 and 2 have no more capacity
8
In the strategy profile, several Res 1 7 6 3 1
steps can be defined:
Res 2 5 4 2
Step 1: Find slot backward with
reverse, Res 3
lowest mode priority: 1
Today Time
Res 1 7 6 3 1
Res 2 8 5 4 2
Res 3
Today Time
ã SAP AG 2001
n It may also be that you do not want alternative resources to be used in the same way, for example,
because one alternative resource is not to be used for cost reasons or is only to be used for other
purposes.
(C) SAP AG AP220 7-50

Selection of Alternative Resources Taking the
Lowest Mode Priorities into Account (2)
9
Step 2: Find slots backward with Res 1 7 6 3 1
reverse, 5 4 2
Res 2
lowest mode priority: 2
Res 3
Today Time
Res 1 7 6 3 1
Res 2 8 5 4 2
Res 3 9
Today Time
ã SAP AG 2001
(C) SAP AG AP220 7-51

Mode Priority
PPM Product A Mode priority for

optimization/
Operation 10: Pre-assembly restrictions in planning
Activity: Setup Priority A Priority B

Activity: Production Priority A Priority B
Operation 20: Paint
ã SAP AG 2001
n Mode priority: You can define several modes for an activity, that is, several sets of resources at
which the activity can be carried out. In general, these alternatives are not the same. For example,
you may want to load a fast, expensive machine more than you want to load the slower, inexpensive
replacement machine. This means you can assign priorities to the modes: A mode with priority A
has the highest priority (for example, the special machine), a mode with priority B has the next
highest priority (for example, the replacement machine), and so on up to priority O. One of the
modes you assign to an activity must either have the priority A or B. Different modes may have the
same priority.
You assign the priority Z to the modes you only want to schedule manually in the DS planning
board. You manually schedule the resources you only want to use, for example, in exceptional
situations for production (test or training machines). You can schedule modes of all priorities
manually in the DS planning board.
n During planning (for example, when creating an order), the system automatically executes the mode
selection according to the availability date. If several modes with different priorities can meet the
scheduling criteria, the system chooses the mode with the highest priority.
n However, if you do not want the orders to be automatically executed at resources of a lower mode
priority, you can start an optimization run after planning. The optimizer can reschedule existing
orders while taking date criteria and the costs of alternative modes into account (the lower the mode
priority, the higher the additional costs).
n Disregarding alternative resources with low priority: You can configure the detailed scheduling
strategy in such a way that the system does not consider modes of low priority during automatic
mode selection. This means you can instruct the system to schedule modes with a minimum priority
only. You can also specify that the system must retain the current modes during rescheduling in the
detailed scheduling strategy.
(C) SAP AG AP220 7-52

Concept: Mode Linkage
PPM product A
Activity Mode 1 Mode 2 Purpose of alternative modes in PPM: to
Resource 1 Resource 1 maintain alternative resources for production
10 R2 R3
20 R1 R4 Mode coupling can be activated in PPM (in

the Mode connection type field on the
Relationships tab of the PPM)
Resource 1 Activity 20
Rescheduling activity 10 from resource 2 to resource 3

-> Automatic rescheduling of activity 20 from resource 1 to resource 4
ã SAP AG 2001
n Mode linkage types (definition in the relationships in the PPM): Define which connections exist
between modes of two activities. The following linkage types are possible:
1. Linkage between modes with the same mode names: Example:
Activity 1 2
Mode abc abc
The modes with the same mode names are linked for the activities 1 and 2.
2. Linkage between modes with the same primary resources. Modes of two activities are linked
if they have the same primary resources. In this case, the mode name has no meaning.
Activity 1 2
Mode abc def
Primary resource 123 123
The modes with the same primary resource are linked.
n Mode linkage: After rescheduling activity 10 from resource 2 (mode 1) to resource 3 (mode 2),
activity 20 must also be rescheduled due to mode linkage. The new mode 2 determines the resource
for activity 20.
(C) SAP AG AP220 7-53

Mode Linkage
PPM Product A
Mode linkage
Operation 10: Pre-assembly
Activity: Setup
Operation 20: Paint
ã SAP AG 2001
n In mode linking, the selection of a mode for an activity also specifies the modes for the activities that
are chronologically before and after it (for which a time relationship exists in the PPM). This is
particularly true for the activities of an operation that are always processed on the same primary
resource (mode linkage via the primary resource).
n If you want to make the mode selection for an activity dependent on which mode is used for an
activity of another operation, you can link the modes for these activities. Mode-linked activities
cannot be scheduled on random modes independently of each other. This is particularly true for the
activities of an operation that are always processed on the same primary resource (mode linkage via
the primary resource).
n The following link categories are available:
• Linking of modes that have the same mode name: You can only use this link category to link
activities from different operations.
• Linking of modes that have the same primary resource: This link category is mandatory for
linking the activities of one operation. However, you can also use this link category to link
activities that belong to different operations.
n Alternative modes must be maintained manually in the PPM in APO.
(C) SAP AG AP220 7-54

Mode Linkage (2)
PPM Product A
No mode linkage
Operation 10: Pre-assembly
Activity: Setup
Operation 20: Paint
ã SAP AG 2001
n Prerequisite: You have maintained more than one mode for each activity in an operation in the PPM. You have assigned
the same priority to modes that are linked. In the case of linked primary resources, the modes for the activities with the
same primary resource must have the same priority. This is relevant for the activities in an operation and in the case of
mode linking across operations. In the case of mode linking between modes of the same name, the modes with the same
name must have the same priority. This is only relevant for mode linking across operations.
n Prerequisites: You have to make the following settings in the production process model (PPM) to link the modes of two
activities when scheduling:
• To link modes with the same name, you must:
• Create a relationship between the activities that have to belong to different operations and assign the link category
"3" (same mode number) to this relationship.
• Define at least one mode with the same name for each of the activities.
• Assign the same priority to the linked modes The system can automatically schedule modes with priorities A to O.
You cannot use the mode link functions for modes that are only scheduled manually (mode priority "Z").
• To link modes with the same primary resource, you must:
• Create a relationship between the activities and assign the link category 2 (same primary resource) to this
relationship. The system automatically activates the primary resource link in the operation when you create the
mandatory start and end relationship between the activities of an operation.
• Define at least one mode with the same primary resource for each of the activities. In the operation, all activities must
have at least one mode with the same primary resource.
• Specify the same resource consumption for the primary resource in the modes to be linked if the primary resource is a
multi-resource. The same resource consumption is only required when linking to multi-activity and multi-mixed
resources. In the case of single-activity and single mixed resources, the activity always uses the complete resource.
That is, the resource consumption is always 1 for single-activity resources.
(C) SAP AG AP220 7-55

• Assign the same priority to the linked modes The system can automatically schedule modes with priorities A to O.
You cannot use the mode link functions for modes that are only scheduled manually (mode priority "Z").
(C) SAP AG AP220 7-56

Scheduling: Cover Flag
Operation from PPM

Remaining available
capacity
1:
Capacity Cover Setup
Activity 2: Produce
used flag from
PPM No operation of a different order
is scheduled here
Primary resource Capacity requirements

For example, machine capacity required for the activities setup and produce
Secondary resource 1
For example, labor capacity required for the activity produce
Secondary resource 2
For example, tools required for the activity setup
ã SAP AG 2001
n Cover flag in the relationships in the PPM (constant loading of resources): During planning and
optimization, this flag keeps a resource from being occupied by activities of different orders in the
time period between two activities.
n Use: If a resource is to be constantly used by two activities of an order.
n Dependencies: This indicator is set automatically if the relationship is in the same operation and the
primary resources are linked. Within an operation, only linear, covered activity relationships may
exist. Therefore, the system will not allow you to make entries in this field in such situations.
If you want to use the cover flag to connect activities between operations, you must maintain the
cover flag in the PPM.
(C) SAP AG AP220 7-57

Typen von Ressourcen
Single Activity
Multi Activity
Bucket
ã SAP AG 2001
(C) SAP AG AP220 7-58

Resources - Multi-Activity Resource (1)
l Synchronization of activities (in the planning parameters of a

multi-activity resource):
Parallel operations with the same duration (and identical set-up
key) scheduled at the same time
4h 1h 2h 1.5 h 1.5 h 2h Duration of
activities
Multi-activity
resource with Act. order 1
3 individual
capacities Act. order 5
6:00 8:00 10:00 12:00 14:00 16:00 Time
Activities with same duration Activities with different

and same setup duration and same setup
key start at the same time key do not start at the same time
Colors represent set-up key
ã SAP AG 2001
n Use: Using the synchronization procedure, the system creates blocks of activities at a multi-activity
resource or at a multi-mix resource during the planning process. These blocks can be processed
simultaneously as they are of equal length and they also have a further common characteristic. The
blocks are created as the system schedules each activity to be newly scheduled to the multi-resource
as follows:
• If the desired start or finish date of the activity to be scheduled lies between the start and finish date
of an activity that is already scheduled, is of the same length and has a further common
characteristic, the system schedules the activity on the start date of this activity, assuming that
sufficient capacity exists.
• If there is not sufficient capacity available on this date, the system schedules the activity to be
scheduled before the activity already scheduled in the case of backward scheduling or after the
activity already scheduled in the case of forward scheduling. In both cases, no overlapping is
allowed.
n The system always schedules activities with different durations or with different characteristics with
no overlaps.
n Example: Using the synchronization procedure, you can represent the loading of an oven. As the
oven can only be filled or emptied all at once, it has to be completely filled with products that have
to be kept at the same temperature for the same length of time. Therefore, you can only schedule
baking activities with the same duration and which have to be carried out at the same temperature.
Baking activities that require either a different duration or which require the oven to be set to a
different temperature can only be carried out either before or afterwards and overlapping is not
allowed.
(C) SAP AG AP220 7-59

Resources - Multi-Activity Resource (2)
l Time
Multi-activity
Resource with
Act. order 1
3 individual
capacities Act. order 5
6:00 8:00 10:00 12:00 14:00 16:00 Time
Activities
are scheduled on 3
individual capacities
Colors represent set-up key
ã SAP AG 2001
n Prerequisites: The following prerequisites must be met for the system to synchronize the reservation
of a multi-activity resource:
• You use the multi-activity resource in the modes of the activities only as a primary resource.
• In the production process model, you have assigned a setup group/key to each operation to be
carried out at the multi-resource.
• Using the setup key or the setup group, you assign a certain characteristic value (for example, a
certain temperature) to the activities of an operation. The same setup key or group means the same
characteristic values, for example, the same temperature, and different setup key or groups means
different characteristic values.
• Notice that the setup key is used differently for multi-resources than for single resources:
• For single resources, the setup key or group classifies the setup status of the resource. The
system valuates the setup status of the resource during the setup adjustment or during the setup
optimization using the setup matrix.
• For multi-resources, the setup key or the setup group represents any value of a characteristic
(for example, a certain temperature) you want to use to synchronize activities.
(C) SAP AG AP220 7-60

Continuous Input/Output (1)
Case 1 Case 2 Case 3 Case 4
Operations, plnd order
Product A 10 20 10 20 10 20 10 20
Dependent
reqmts
Discrete input, Continuous input, Discrete input, Continuous input,

discrete output discrete output continuous output continuous output
A Continuous output Discrete output

Final assembly
Assembly production Continuous input Discrete input

B C D
Height of triangle: receipt or requirements quantity

ã SAP AG 2001 Angle: production rate (quantity per time)
n Use: The purpose of continuous input/output is to overlap component production or component

external procurement with the requirements (for example, for longer orders). Continuous
input/output is to the second (continuous).
n Prerequisite:
In the R/3 BOM, maintain the BOM item of the assembly/component in the Distribution key field
on the Basic data tab. If you have entered any distribution key here, consumption type C
(continuous consumption) is automatically transferred instead of S (consumption at the beginning
of the activity) or E (consumption at the end of the activity) to the APO-PPM (logical input
component) via the R/3-APO interface.
In the R/3 production version of the finished product/assembly, maintain a distribution key for
output quantities (specifies that the production quantity is to be distributed across the runtime of a
planned order, production order or process order in partial quantities, and how this is to be done).
If you have entered any distribution key here, consumption type C (continuous consumption) is
automatically transferred instead of S (consumption at the beginning of the activity) or E
(consumption at the end of the activity) to the APO-PPM (logical input component) via the R/3-
APO interface.
For continuous input/output to be considered in planning (interactive as well as background
planning), you must plan with a heuristic that takes continuous input/output into account. This can
be one of the following heuristics: SAP_PP_C001 (Planning standard lots for conti.-IO) as the
lot-sizing procedure, SAP_PP_008 (Rescheduling: bottom up conti-IO) as the service heuristic.
When you use other heuristics, continuous input and output quantities can be generated, however,
there is no overlapping during scheduling.
(C) SAP AG AP220 7-61

Continuous Input/Output (2)
Case 1 Case 2 Case 3 Case 4
Product A 10 20 10 20 10 20 10 20
10 20 Product B 10 20 10 20 10 20 Case
4a
Discrete output also Continuous output also
for product B for product B
10 20 Case
4b
A Final assembly Planned order product B, if
operation 20 is longer than
operation 10 of product A
B C D Assembly production
ã SAP AG 2001
n Case 4 a and b: Component production is always scheduled in a way that the component
requirements are covered by component production at all times. Scheduling also attempts to move
component production as close as possible to the component requirements (to start as late as
possible).
n You can display continuous input/output in the following transactions: product view, product
planning table (Periodic product view, if the Distributed quantities indicator is set in the user
settings. In this case, additional lines appear with the distributed quantities), DS planning board.
(C) SAP AG AP220 7-62

Continuous Input/Output: Offset
Case 4
10 20 Planned order, product A 10 20
Offset
(lead-time)
When using an offset
(lead-time)
10 10 Planned order, product B 10 10
Problem in case 4: Continuous input of product A (finished product), but also continuous
output of product B (assembly): Final assembly is required to have assemblies
available at the same time as production
A Final assembly
B C D Assembly production
ã SAP AG 2001
n Offset: with the lead-time offset, the dependent requirements date of a certain component can be
moved.
n Prerequisite: In the R/3 BOM, maintain a positive value in the BOM item of the
assembly/component in the Lead-time offset field on the Basic data tab. This value is transferred to
the Offset field in the APO PPM (logical input component) via the R/3-APO interface. If you have
maintained a negative lead-time offset, a negative offset is transferred.
(C) SAP AG AP220 7-63

1 Course Overview

2 Products

ã SAP AG 2001
(C) SAP AG AP220 7-64

l Only consider within the propagation range
Inside propagation range
Resource 1
Resource 2 ALERTS:
Violation of an order
internal
Min : 12:00:00 AM h relationship
Outside propagation range
Resource 3
t
Today
Available Min : 12:00 h
Occupied Operations rescheduled within the

propagation range
Order
ã SAP AG 2001
n You can specify, for example, that the system is to add an operation to an existing schedule while
rescheduling (Add operation planning mode). To create a sufficiently large slot, the system shifts the
neighboring operations into the future. The inserted operation and the operations that were shifted
may have time relationships or pegging relationships to other, dependent operations that must be
observed. The system also automatically shifts the dependent operations.
n You can use the propagation range to restrict the resource on which the system may perform such
subsequent rescheduling for scheduling in the detailed scheduling planning board.
n The propagation range specifies which resources and products can be scheduled in Production
Planning and Detailed Scheduling. This includes:
Creating, changing and rescheduling orders for these products
Changing the capacity and the planning parameters of these resources
Rescheduling operations from the orders belonging to these resources
(C) SAP AG AP220 7-65

l Do not consider
ALERTS:
Resource 1 Violation of an order
internal relationship
Resource 2
Today t
Min : 12:00:00 AM h
Available
Occupied
Order
ã SAP AG 2001
(C) SAP AG AP220 7-66

Strategy: Scheduling in Non-Working Times
l Only for manual scheduling within the planning board

using drag and drop
Resource 1
Resource 2
Today t
Available Manual loading
Occupied
Non-working time (break, weekend)
ã SAP AG 2001
n In the detailed scheduling planning board, you can use drag and drop to schedule operations in the
non-working times of a resource, that is, in times where the resource is not scheduled to work. By
using this strategy, you do not have to change the resource data directly when you want to finish an
operation after the end of the regular working time, for example, after the end of the last shift.
n During the non-working time, the same capacity and the same rate of resource utilization is available
as was available in the regular working time that directly preceded this. For more information, see
Scheduling in Non-Working Times.
In the detailed scheduling planning board, working times are shown in white, regular non-working
times (such as breaks and weekends) in gray (if you have specified that non-working times are to
be displayed in the DS planning board profile), and downtimes (for example, through machine
shutdowns) in dark gray.
You can show and hide non-working times in the DS planning board.
You can show and hide downtimes in the DS planning board. You cannot schedule operations in
downtimes.
Procedure: Choose Settings -> Strategy to call the strategy profile and set the Non-working times
indicator in the detailed scheduling strategy. Choose Enter. Using drag and drop to shift the
desired operation to the non-working time.
Result: The system schedules the operation on this date when all other prerequisites are met, for
example, when no constraints are violated by the schedule.
n The system fixes the operations that you schedule in non-working times, that is, the operations can
no longer be rescheduled. Even when you withdraw the Non-working times indicator, the operations
remain fixed. To be able to reschedule the operations again, you must undo the fix.
(C) SAP AG AP220 7-67

Insert an Operation
1. Step
Insert operation
4
7 6 5 3 2 1
Today Time
2. Step
Reschedule predecessor 4
and successor
7 6 5 3 2 1
Today Time
3. Step
Check current temporal
constraints:
If contraints are violated: 7 6 5 3 4 2 1
-> move sequence into the
future Today Time
ã SAP AG 2001
n Insert an operation:You can use this finite scheduling mode to schedule an operation in an existing
schedule on (or as close as possible to) the desired date, even when there is no slot in the schedule
for this date, or only a slot that is too small. If necessary, the system creates a slot that is large
enough by shifting the neighboring operations that lie in both directions onto the resource.
n You can only use this scheduling mode for single activity resources that are to be scheduled finitely.
In the scheduling parameters for the resource, you specify whether that resource is finite or infinite.
In the case of infinite resources, the system always schedules an operation infinitely on the desired
date, that is, without considering the existing resource load.
(C) SAP AG AP220 7-68

Settings for Dependent Operations: Planning with
Time Buffers
Resource 5 50
Resource 4 40
Bottleneck
Bottleneck
operation
operation
Resource 3 (bottleneck) 30
Resource 2 20
Time
Time buffer
buffer
(positive
(positive value)
value)
Resource 1 10
Time
Bottleneck (definition as a finite resource) sets takt: time buffers are to ensure that the takt
setter is not interrupted in its takt by delays in material supply
ã SAP AG 2001
n In Production Planning and Detailed Scheduling, if you want to protect an operation or the primary
resource, on which the operation is processed, from unforeseen delays in planning, you can schedule
using a resource-specific time buffer. The time buffer represents a type of safety time: Using the time
buffer, the system keeps a larger time interval between the operation and the predecessor operations
during scheduling. Possible delays in the predecessor operations can be caught by the time buffer
and a standstill in resources due to material shortage can thereby be avoided. Here, predecessor
operations are the operations that have a time relationship or a pegging relationship to the operation.
n When planning with a time buffer, the system must maintain - depending on the type of relationship
- the following minimum intervals between the operations: In a pegging relationship, the receipt date
must be earlier than the requirements date by the duration of the time buffer. In a time relationship,
the minimum time interval defined in the production process model (PPM) is increased between the
operations by the duration of the time buffer. If you do not specify a minimum interval in the PPM
for a relationship, the system uses 0 as the minimum interval; during scheduling with time buffers,
the minimum interval is therefore the duration of the time buffer. In the PPM you can specify for a
cross-operation relationship if the system can use the time buffer during scheduling. (In relationships
within one operation, in principle, you cannot carry out scheduling using time buffers).
n General prerequisites:
You specified a time buffer in the primary resource in which you want to carry out scheduling
with time buffers. You also have to set the detailed scheduling strategy so the system considers the
time relationships.
• Special prerequisites for planning with time buffers in time relationships
• In the PPM for the cross-operation time relationships, in which you want to schedule with time
buffers, you specified that the system can use the time buffer during scheduling (reference subtype
2). In relationships within one operation, you cannot carry out scheduling using time buffers. As a
rule, the system uses the reference subtype Standard here.
(C) SAP AG AP220 7-69

• In the detailed scheduling strategy, you have specified that the system must use the time buffer for
these time relationships when planning.
• Special prerequisites for planning with time buffers in pegging relationships
• You have specified in the detailed scheduling strategy that the system is to consider pegging
relationships.
• In the detailed scheduling strategy, you have specified that the system must use the time buffer for
these pegging relationships when planning.
(C) SAP AG AP220 7-70

Detailed Scheduling - Refresh Function
Resource 1
R2
R3
R4
New orders
displayed after
refresh
ã SAP AG 2001
(C) SAP AG AP220 7-71

DS: Refresh Function - Scenario 1
Scenario 1: Sequence of operation was changed in the planning version

Time
Planning version Op20 Op10 Op40 Change

Start planning board sequence in
Simulation in planning board
planning board Op10 Op20 Op40
Change
Planning version Op20 Op40 Op10 sequence
Refresh function in planning board

Simulation
after refresh Op10 Op20 Op40 No changes for
Save planning board simulation
(simulation)
Planning version Op10 Op20 Op40

Planning version
=
simulation
ã SAP AG 2001
(C) SAP AG AP220 7-72

Scenario 2: Operation 10 fixed

Time
Planning version Op20 Op10 Op40 Change

Start planning board sequence in
Simulation in planning board
Planning version ¬ Operation 10 is

Op20 Op10 Op40 fixed

Simulation
after refresh Op10 Op20 Op40 No changes for
Operation 10 is
(transactional simulation)
not fixed

Planning version
=
simulation
ã SAP AG 2001
(C) SAP AG AP220 7-73

Scenario 3: Creation of new order -> new operation at resources

Time
Planning version Change

Op20 Op10 Op40 sequence in
Start planning board planning board
Simulation in
Operation 60
generated
Planning version Op20 Op10 Op60 Op40

Simulation Op60 Operation 60
after refresh Op10 Op20 Op40 appears in
(transactional simulation)
Op60
Alert! - Operation 60, 10 and 20
are overlapping. No
changes for op10 op20 and op40
ã SAP AG 2001
(C) SAP AG AP220 7-74

Scenario 4: Delete order -> Operation 10 was deleted

Time

Simulation in
Operation 10
deleted
Planning version Op20 Op40

Operation 10
Simulation disappears
after refresh Op20 Op40
No changes
Save planning board Op20
(simulation) and Op40
Planning version Op20 Op40

Active version
=
simulation
ã SAP AG 2001
(C) SAP AG AP220 7-75

Scenario 5: New Order Quantity -> Duration of the operation 10 was changed
Time

Simulation in
Operation 10 is
changed
Refresh function in planning board Duration and

start date
Simulation Op10 of operation 10
after refresh Op20 Op40 changed
Save planning board

(simulation)
Alert! - Operation 20
Op10
Planning version and operation 10 overlap.
Op20 Op40
No changes for
op20 and op40
ã SAP AG 2001
(C) SAP AG AP220 7-76

Scenario 6: Operation 20 was partially confirmed

Time

Simulation in
Operation 20
partially
¬ confirmed

Operation 20
Simulation Op20 moved to
after refresh Op10 Op40 new start date
Save planning board
(simulation)
Op20 Alert: Operation 20 and operation 10
Planning version Op10 Op40 overlap.
No changes for op10 and op40
ã SAP AG 2001
(C) SAP AG AP220 7-77

PP/DS Menu Paths and Overall Profiles
l Several menu paths with

different overall profiles
Menu paths in the Set/get
Set/Get parameters
parameters for for calling up the planning
PP/DS menu the menu paths board
View 11
View View 1
/SAPAPO/CDPS_VIEW1 n Menu path variable view:
View
View 22 View 2
/SAPAPO/CDPS_VIEW2
M The user specifies the
overall profile when
View 3
calling up the planning
View
View 33 /SAPAPO/CDPS_VIEW3
board.
Variable
VariableView
view 1 n Menu paths, view 1 to 3:
M Standard overall profiles
are set by SAP.
M Using the SET/GET
parameters, other overall
profiles can be set.
ã SAP AG 2001
n On the Production Planning and Detailed Scheduling screen, you can directly call up the planning
board with various overall profiles, that is, with different settings. To do this, choose Detailed
scheduling, and then View 1, View 2, View 3 or Variable view.
n When you call up the Variable view, you must enter an overall profile to get to the planning board.
For the overall profile, you can select other sub-profiles.
n In View 1, View 2 and View 3, overall profiles are set by SAP. If you want to work with other overall
profiles, you assign these overall profiles to the SET/GET parameters in user maintenance (System -
> User Profiles -> Own Data).
n In the Variable View, you can always change the work area before starting the planning board. For
Views 1 to 3 you specify in the overall profile whether or not you can change the work area when
calling up the planning board.
(C) SAP AG AP220 7-78

User-Specific Profiles: Customizing
l Overall profile
l Strategy profile
l Planning table profile
l Work area
l Time profile
l Optimization profile
ã SAP AG 2001
n For the profiles listed above you can define standard profiles and user-specific profiles that you
identify using a Customizing ID. Standard profiles do not have a Customizing ID.
n As a rule you use your user ID as the customizing ID.
n When you work with the planning board that you call up in order maintenance, the system
automatically uses the settings defined in the user-specific profiles (if you have defined any user-
specific profiles with your user ID as the Customizing ID).
n When you work with the planning board that you call up directly in PP/DS, the system uses the
settings from the profiles that you specify explicitly (either standard or user-specific).
(C) SAP AG AP220 7-79

Work Area
Work area
Products Orders Resources
Orders
Operations Operations
Resources Resources Resources

from the products from the orders directly from
in the work area in the work area the work area
Planning Board
ã SAP AG 2001
n Using the work area, you define which objects are displayed in the planning board you call up
directly in PP/DS.
n The work area is a selection of resources, orders and products from which the system determines the
resources that are transferred to the planning board, according to the following selection paths:
From each product that you specify in the work area, the system determines all orders for this
product. From these orders, the system determines the operations for these orders. From these
operations, the system determines the resources that are used by the operations.
From each order that you specify in the work area, the system determines the operations for the
order, and from these operations, the resources that are used by the operations.
Each resource that you specify in the work area is directly relevant for the planning board.
From these resources the system determines the objects that are displayed in the various charts
(resources chart, products chart, operations chart and orders chart).
n In the overall profile, you can specify if you can change the work area when calling up the planning
board.
n Note: You define the products and resources that you can schedule in the planning board in the
propagation range.
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Propagation Range
l Specifies which resources and products you or the system

can schedule in PP/DS.
l The From work area indicator specifies that the system
applies the resource selection from the work area to the
propagation range
ã SAP AG 2001
n Using the propagation range, you define which objects you can schedule.
n Note: You use the work area to define which objects are displayed in the planning board, which you
call up directly in the area menu for PP/DS.
(C) SAP AG AP220 7-81

Time Profile
Evaluation period
Pre-evaluation Post-evaluation
Planning period
period period
l An evaluation period consists of

n Pre-evaluation period
n Planning period
n Post-evaluation period
l Periods are defined absolute or relative to current date
l Units of time: month, week, day, hour, ...
l Pre-evaluation and post-evaluation can be expressed in units
different to those in the planning period
ã SAP AG 2001
n The evaluation period is the period that is displayed in the planning table.
n In the planning period, you can change the schedule.
n The schedule for the pre-evaluation period and the post-evaluation period is only displayed, and
cannot be changed.
(C) SAP AG AP220 7-82

Alert Monitor Profile
l Alert Monitor profile

n Pre-defined profile for the Alert Monitor
M Alert types to be displayed
M Restrict alerts to be displayed
M Restrict DP alerts
M Priority variants
ã SAP AG 2001
n Problems can occur during scheduling, for example, resource overload or delivery date exceeded.
n In the Alert Monitor profile, you define for which scheduling problems alerts should be displayed.
Alerts are generated when the following objects are affected:
The resources and products in the propagation range
The resources that you specify via the work area
The objects that you specified explicitely in the Alert Monitor profile
n You define the Alert Monitor profile in the Supply Chain Cockpit.
n In the planning board, you can call up the Alert Monitor by choosing Extras.
(C) SAP AG AP220 7-83

Strategy Profile
l Planning direction
n Forward / backward
l Planning mode
n Find slot
n Insert operation
l Planning parameters
n Finite / infinite scheduling
n Schedule to non-working times
l Pegging relationships
n Fixed pegging
n Dynamic pegging
ã SAP AG 2001
n For details, see Order Processing.
(C) SAP AG AP220 7-84

DS Planning Board Profile: Structure
DS
DS planning
planning board
board profile
profile
Charts
Charts--Selection
Selectionof
ofcharts
chartsto
tobe
bedisplayed
displayed
Decision
Decisiontable
tablefor
fortable
tablerow
row
Decision
Decisiontable
tablefor
forgraphical
graphicalobject
object
Definition
Definitionof
ofgraphical
graphicalobjects
objects
Representation
Representationof
ofgraphical
graphicalelements
elements
ã SAP AG 2001
n In the DS planning board profile, you specify the layout of the planning board.
n The structure of the DS planning board profile is displayed above:
For each profile you define the representation of all graphical objects (operations or orders) that
you want to display in the planning board.
For each profile, you define the charts (up to 8).
For each chart, you define the descision tables that the system uses to determine the appropriate
presentation of a graphical object in the diagram section and a table row in the table section. You
define one decision table for the selection of rows and one decision table for the selection of
graphical objects.
(C) SAP AG AP220 7-85

DS Planning Board: Global Settings
DS
DSplanning
planningboard
boardprofile
l Windows settings profile
Charts - Selection of charts to be displayed
n Width of table area in 1/10 mm Decision table for table row
Decision table for table row
n Initial zoom factor for displayed objects Decision table for graphical object
Decision table for graphical object
l Mode settings Definition of graphical objects

Definition of graphical objects
n Horizontal lines in the diagram section Representation of graphical elements

Representation of graphical elements
n Interval for date display (granularity)

n Dialog box for moving orders and
operations
l Switches
n Activate automatic expansion
n Show info text / quick info
n Optimize column width / line height
n Expand multiple loading
ã SAP AG 2001
n You use global settings to control some general properties of the planning board graphics. The global
settings effect all charts in the planning board.
n You can specify that the default graphical basic settings for the planning board are to be adopted.
(C) SAP AG AP220 7-86

DS Planning Board Profile: Charts (1)
l Chart object
l Objects displayed
DS
DSplanning
planningboard
boardprofile
profile
n Orders
Charts -Selection of charts to be displayed
Charts -Selection of charts to be displayed
n Operations
n Network views of orders or of operations
n Histogram (product stock/resource load)
l Dynamic / static charts

n Network view charts
n Histogram charts
l Row formats (fonts etc.)
n For column header l Other settings
n For table lines (standard format and up to 6 n Hide non-work times
other formats)
n Always sort
n Chart height
ã SAP AG 2001
n You can define up to 8 charts for the planning board. The chart number defines the position of the
chart in the planning board.
n The chart object defines which fields can be displayed in the table section of the chart and which
objects can be displayed in the diagram section of the chart. For example, you can use the chart
object Resource to define a resource chart displaying the resource name in the table section and
operations in the diagram section, or a resource load chart displaying resource load curves in the
diagram section.
n Charts with histograms and with network views can be static or dynamic. Static charts are
permanently displayed in the planning board. You can show or hide dynamic charts in the planning
board.
n Beside a standard row format (font, alignment background color), you can define up to six more
different formats for the rows in the table section. In the decision table for table rows you define
which row format the system applies to a row, depending on the characteristics of the displayed data.
(C) SAP AG AP220 7-87

DS Planning Board Profile: Charts (2)
Objects that can be displayed in the diagram section

Order Network Operation Network Histo-
orders operations gram
Resource x x x
Resource load
Chart object
Products x x x x x
Product stock
Order x x x x
Operation x x
ã SAP AG 2001
n The chart object defines

Which objects are displayed in the table section
Which objects can be displayed in the diagram section
(C) SAP AG AP220 7-88

DS Planning Board Profile: Decision Tables
l Function
DS
DSplanning
planningboard
boardprofile
profile
n Finding the appropriate representations Charts - Selection of charts to be displayed
of the objects in a chart (operations,
orders, rows) Decision table for table row
l
Structure Decision table for graphical object
n Decision group Definition of graphical objects

n Decision step Representation of graphical elements

n 'If' condition
w Table / field name
w Logical operator
w Comparison value or table / field
name
n 'Then' scenario
w Row format or next decision group
or
w Graphical object ID or next decision
group
ã SAP AG 2001
n In the decision tables, you define for a chart all the decision steps needed for the system to choose
the appropriate representation of an order, an operation or a table row. The choice of graphical
objects or a row format is dependent on particular characteristics. For each chart, you define one
decision table for rows and one decision table for graphical objects.
n In a decision table, you define one or more decision groups to which you assign different numbers.
In the decision groups, you combine various decision steps, to which you also assign numbers. In
each decision group you can group decision steps together in a particular "theme".
n You formulate the decision steps using IF/THEN instructions.
n In the IF part of a decision step, you formulate a statement in which you compare the contents of a
table field with another value via a logical operator. For a comparison value you can enter a specific
value or a table field.
n In the THEN part, you define what the result is when the IF part is true. You can specify how the
object is represented. To do this, you enter a graphical object or a row format. You can also check
for further characteristics. To do this, you enter another decision group to which the system should
go to in order to check this question.
(C) SAP AG AP220 7-89

Planning Table Profile: Graphical Objects
Standard operation DS
DSplanning
planningboard
boardprofile
profile

Released operation

Confirmed operation
Processing
Setup
Line Rectangle Symbol

Planned Planned Planned Planned
Graphical elements finish date finish date start date finish date
ã SAP AG 2001
n Graphical objects represent operations or orders in the planning board. For each planning board
profile, you define all the graphical objects that you want to use in the planning board to display, in
various ways, operations and orders that have different characteristics.
n The graphical object is made up of a graphical element, the order or operations dates and a text label.
For the label, you can define the field, whose contents is used for the text, the font and the position
relative to the graphical object.
n Operations with several activities can be represented by graphical objects composed of several
graphical elements, one graphical element for each activity. For example, set up and processing can
be depicted in different ways.
n For each graphical element of a graphical object you specify:
Whether the graphical element represents an order, an operation or an activity
Whether the graphical element is a line, a rectangle or a symbol
On which dates for the order, operation or activity the graphical element is placed in the planning
board (planned or actual start date or finish date)
If the graphical element is a line or a rectangle, you must specify a start date and a finish date. If
you choose a symbol as a graphical element (for example, a diamond) you enter only one date.
The system positions the symbol in the planning board on this date.
(C) SAP AG AP220 7-90

Selection of Graphical Objects
Standard operation
Released operation
Confirmed operation
If ...... then
graph. object 1
or if....... then
graph. object 2
or
...
ã SAP AG 2001
n In the decision table for a chart, you specify which operations and orders should be represented by
which graphical objects.
(C) SAP AG AP220 7-91

Push Production
l Components trigger push production

l Identify push problem using the Alert Monitor
l Push production can be called from:
n Alert Monitor
n Planning situation for product
l System selects target products & PPM and creates proposals
to consume unused material
l User decision: create planned orders to consume material
l Conflicts indicated in Alert Monitor
ã SAP AG 2001
n Push production is used to create a production plan starting with products for which no requirements
exist in the system (push products). Push production takes the predefined planning strategies into
account.
n Push production supports decision-making to solve a clearly defined push problem (material without
consumer) in short-term to medium-term planning. It helps with the decision of what to produce and
in which quantity to produce it to consume a push material. Push production works in the opposite
direction than requirements explosion. It does not change the master production schedule based on
target product requirements by working from the finished product via the intermediate products to
the raw materials (pull). Instead, it works with requirements explosion and searches for a use for
available raw materials and semi-finished products.
n Prerequisite: The Alert Monitor supports you in finding products with a surplus. To do this, the
PP/DS Excess Coverage alert must be activated in the Alert Monitor profile.
You can only jump to push production from the Alert Monitor if the Alert order generates surplus is
activated.
n Push production takes place in two main steps:
• Identify push problem: Which orders generate a surplus?
• Generate consumer for this product
(C) SAP AG AP220 7-92

Push Production - Process Flow
Planning situation Alert Monitor

for product
Identify push problem

(Scheduler determines push material)
Carry out push production

• PPM explosion
Product
master • System provides suggestions Alert
Monitor
PPM • interaction
Details
Planning •Order simulation by scheduler
strategies
•Capacity check
•Assignment of order and requirement
Scheduler accepts orders or discards simulation

ã SAP AG 2001
n In the system, you identify a quantity of a product for which no consumer is available (push
product). The system supports you with alerts that detect surpluses.
n You call up push production. Push production can either be called up from the Product View for the
push product (in the change mode) or from the Alert Monitor. The Push Production screen appears
in which all required information and functions for solving a push problem appear. This includes:
Orders with a surplus of push products
All production process models with the product receipts in which the push material is used
All orders that were generated through push production
n You choose an order with a product surplus. The system uses the data in the production process
model to calculate the quantity of possible product receipts based on the quantity of push products
and displays this quantity.
n You choose a product that you want to produce, determine the quantity to be produced, and create an
order or several orders in a simulation.
The system plans according to the set planning strategy.
If there are lot-size constraints, the system calculates the number of orders that must be created to
produce the desired quantity. This calculation is based on the leading product of the selected
production process model. If the number of orders is greater than one, the result of the calculation
is displayed.
You can change the number of these orders.
The system adjusts the total quantity accordingly.
n The system updates the push production view.
n If you want to create the simulated orders, save your planning.
(C) SAP AG AP220 7-93

n Result: Manufacturing orders that consume the push product are created in a simulation. You decide
whether these orders are to be created or the simulation is to be discarded.
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Push Production - Example
ã SAP AG 2001
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1 Course Overview

2 Products

6
ã SAP AG 2001
(C) SAP AG AP220 7-96

Metaheuristics: Resource Decomposition
Resources
Bottleneck
Time
Bottleneck
1. Determine bottleneck
2. Schedule bottleneck resources only
3. Fix sequence at bottleneck resource
4. Schedule all remaining resources
ã SAP AG 2001
n Using resource decomposition, the schedule is first optimized for the bottleneck schedule.
n Then the schedule for the remaining resources is optimized. The schedule for these resources is
adapted to the bottleneck schedule.
n Note: Resource decomposition is only used in campaign optimization.
n Prerequisite: You have set the Bottleneck resource indicator in the resource which you want to
optimized first for campaign optimization (metaheuristic Resource decomposition
Ressourcenzerlegung). The Bottleneck resource indicator is only relevant for the metaheuristic
resource decomposition and has no other planning characteristics in APO planning. Therefore, this
field cannot be maintained in R/3 and transferred via the R/3-APO interface.
(C) SAP AG AP220 7-97

Hard Constraints: Example
Temporal constraints
Resource 2 Activity A
FS: [-10min; 180min]
Resource 1 Activity B Activity B
Time
FS: Finish-start relationship
Scheduling activity A reduces the domain of the

decision variable "Start of Activity B"
ã SAP AG 2001
(C) SAP AG AP220 7-98

Calling Optimization in the Detailed Scheduling
Planning Board
ã SAP AG 2001
n While optimization is running, the progress of the values for the individual optimization criteria is
displayed graphically. Another screen section displays the messages created by the system regarding
the network or optimization.
n After the optimization run has ended, you can start a new optimization run as required, with changed
optimization settings. When you return to the DS planning board, the system adopts the result of the
optimization run that was executed last in the simulation version of the DS planning board.
n You can use the Plan Monitor to compare the results of various optimization runs. You can call the
Plan Monitor directly from the DS planning board by choosing Extras -> Plan Monitor.
n For more detailed information, use the extensive F1-help available for optimization.
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The Optimization Run Process (1)
l Step 1: Processing pegging relationships. Pegging

relationships are not changed during optimization
Sales
order
Backward
pegging
possible
Planned order
with dependent
requirement
Breaks or capacity
used by other orders
Purchase
requisition
ã SAP AG 2001
n If you have started the optimization run interactively (for example, in the DS planning board) or in
the production planning run, the process is as follows:
n Step 1: Processing pegging relationships:
The LiveCache creates new dynamic pegging relationships for the receipt and requirement
elements that lie within the optimization range when you call the optimizer. In doing so, the
system can execute backward scheduling. By default, the system can link a requirement element to
a receipt element that is up to 24 hours late during backward scheduling. You can enter a different
value in the optimization profile or when calling the optimizer. Reason: The value set in the
product master for backward pegging cannot be taken into account in optimization, which is why
you can define a value in the optimization profile.
The newly generated pegging relationships are then either converted to relationships between
receipt elements and requirement elements or to requirements dates for the receipt elements (these
dates represent hard or soft requirements for optimization, and limit the number of possible
scheduling dates).
This means that during optimization, the optimizer does not change the pegging relationships
(same effect as fixed pegging), since they are considered fixed relationships. The optimizer does
not delete, change or create any pegging relationships. It also does not change any quantities or lot
sizes.
n The newly generated pegging relationships are only valid for optimization. After adopting the
optimized schedule in the planning version, the system creates, if necessary, new pegging
relationships.
(C) SAP AG AP220 7-100

l Step 2: Processing Time Relationships from the PPM
Setting for whether rescheduling

in the optimizer is also allowed
later than 2 hours
Fixed activity
Resource 1
* Activity A
Resource 2 Machine stand still Activity B
Tim
e
End-start relationship:
maximum time interval: 2 hours
Scheduling activity A reduces the domain of the

decision variable "Start of Activity B"
ã SAP AG 2001
n Step 2: Processing time relationships: A relationship with a minimum or maximum time interval
can exist between two activities (maintenance in PPM). At the start of the optimization run, the
system evaluates the relationships between the activities and then determines the possible scheduling
dates for the activities.
• Relationship between two non-fixed activities: During optimization, the system must always
adhere to the relationship between two non-fixed activities; they represent a hard constraint.
• Relationship between a fixed and a non-fixed activity: Using the relationship between a non-
fixed activity and a fixed activity, the system determines the earliest or the latest start or finish
dates for the non-fixed activity. These dates represent hard or soft constraints for optimization as
follows:
- Earliest start or finish dates are a hard constraint for optimization.
- By default, latest start or finish dates are soft constraints that the system is allowed to violate
These delays can be minimized during optimization. If required, you can specify that the system
is also to consider the latest dates as hard constraints.
(C) SAP AG AP220 7-101

l Step 3 (optional): Consistency check

l Step 4: Optimization based on objective function
l Step 5 (optional): Follow-up optimization
l Step 6: Save optimization
ã SAP AG 2001
n Step 3 (optional): Before optimizing, the system performs a consistency check for the master data
transferred to the optimizer: During this check, for example, the system checks the master data for
incorrect settings. For performance reasons, you should only use this check if you are in the
implementation phase and are configuring the master data. If you do not want to execute the
consistency check, you set the Skip data consistency check indicator on the Enhanced settings tab in
the optimization profile, or when calling up optimization.
n Step 4: The system optimizes the schedule in the optimization range based on the specified objective
function, hereby considering all the constraints. To do this, it varies the dates and the resource
assignment for the activities.
n Step 5 (optional): During optimization the system tends to schedule activities earlier than the
requirement date (scheduling always takes place on the earliest possible date). In order to correct this
early scheduling, the system can automatically execute a follow-up optimization in the optimization
run after the actual optimization has finished. During the follow-up optimization, the system tries to
schedule the activities that were scheduled too early closer to the requirement date. This corresponds
to backward scheduling.
Prerequisites in the optimization profile or when calling up optimization:
• Set the Backward scheduling indicator on the Additional strategies tab.
• Specify whether, during the follow-up optimization, the system can change the resource
assignment established during optimization, or whether it must stay the same.
• Specify whether, during the follow-up optimization, the system can increase the total lead time
achieved during optimization.
n Step 6: The system saves the optimized schedule either in the planning version (production planning
run) or in the simulation version (production planning run, DS planning board), depending on where
you started the optimization.
(C) SAP AG AP220 7-102

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• AP220 Production Planning and Detailed Scheduling

Release 3.0A 18.04.2001

(C) SAP AG AP220 0-1

Copyright 2001 SAP AG. All rights reserved.

All rights reserved.

(C) SAP AG AP220 0-2

Level 2 Level 2 Level 3

AP205 2 days AP220 3 days

(C) SAP AG AP220 0-3

l AP010 SAP APO Overview

l LO050 Planning and Control for Discrete

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Project team members responsible for the creation and

Notes to the user

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This course will prepare you to:

(C) SAP AG AP220 1-2

At the conclusion of this course, you will be able to:

(C) SAP AG AP220 1-3

Unit 1 Course Overview Unit 5 The Production

Unit 3 Simultaneous Material and

Unit 4 The Production Planner's

(C) SAP AG AP220 1-4

Consumption for Forecast-Controlled

Simultaneous Material and Capacity

4 The Production Planner's Tools

5 The Production Scheduler's Tools

(C) SAP AG AP220 1-5

Decisions about direction of the company

Integration of Market Place and Supply

(C) SAP AG AP220 1-6

Decisions about direction of the company

Integration of Market Place and Supply

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ª Simultaneous material and capacity requirements planning for in-house

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l Planning critical products (for example, products with long

(C) SAP AG AP220 1-9

Which products should you plan in APO?

Planning type APO Possible APO not Possible

Externally procured products X

(C) SAP AG AP220 1-10

l PP/DS is a planning tool. Execution functions such as

(C) SAP AG AP220 1-11

R/3 Creation of planned orders APO

MRP PPM explosion

Transfer Creation of a pegging network

(C) SAP AG AP220 1-12

Dependent Product Sales orders,

Purchase Sched. agree.

Production Process Plnd order for Sched. agree.

(C) SAP AG AP220 1-13

(C) SAP AG AP220 1-14

Start date: Operation 10 Finish date:

Raw Purchase requisition

(C) SAP AG AP220 1-15

Today Possible ALERTS:

(C) SAP AG AP220 1-16

APO planned order APO purchase requisition

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Order Order Order Order Order Order

(C) SAP AG AP220 1-18