SAP - SCS - BAWAN - User - Manual - SOP & DM

End User Manual
Production Planning
(PP)
SOP & DM
SCS – BAWAN
Production Planning) PP)
End User Manual
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SCS – BAWAN
End User Manual
Contents
1 Document Details ..................................................................................................................................... 4
2 Document Change Control ...................................................................................................................... 4
3 Document History ..................................................................................................................................... 4
1 Product Groups ......................................................................................................................................... 6
2 Sales & Operations Planning (SOP) .....................................................................................................10
2.1 Purpose ..................................................................................................................................................................... 10
2.2 Create SOP Plan ........................................................................................................................................................ 10
2.2.1 For Materials ..................................................................................................................................................... 10
2.2.2 For Product Groups ........................................................................................................................................... 14
2.3 Version Management ............................................................................................................................................... 16
2.4 Disaggregation .......................................................................................................................................................... 17
2.5 Transfer SOP Plan to Demand Management ............................................................................................................ 20
3 Demand Management ............................................................................................................................22
3.1 Maintain Planned Independent Requirements ........................................................................................................ 22
SCS – BAWAN
End User Manual
1 DOCUMENT DETAILS
Topic End User Manual – Production Planning
Creation Date 06.02.2022
Venue SCS – Smart Consulting Solutions
Author SCS PP Team
Delivered To BAWAN Production Department
2 DOCUMENT CHANGE CONTROL

Serial Version No. Changed By Changed Date Description of Change
1 1.0 PP Team February 06 2022 First Version
3 DOCUMENT HISTORY
Authors & Participants
Role Name
Revision History
Date Document Version Author Document Revision Description
Review & Approval

Name Date Title Signature
SCS – BAWAN
End User Manual
SCS – BAWAN
ACCEPTANCE CERTIFICATE
Created by: SCS PP Team
Deliverable Reference: SAP Best Practices
Type: End User Manual V.1

Date: February 06 2022
Deliverable Name:
Deliverable Description:
Signed by BAWAN
Name Title Date Signature
Signed by SCS
Name Title Date Signature
Distribution
Name Title Version Date
SCS – BAWAN
End User Manual
1 PRODUCT GROUPS
A product group combines other product groups and materials according to whatever criteria best meet the
needs of your enterprise; for example, manufacturing procedure, product design, or market niche.
Product groups are classified according to whether they are multi-level or single level. A product group is
multi-level if it contains other product groups. However, the lowest level in a product group hierarchy always
consists of materials. A product group is single-level if its members are materials only. A material or product
group can be a member of more than one owner product group.
Procedure:
1. Access the transaction using one of the following navigation options:
Menu Path Logistics→ Production → SOP→ Product Group → Create
T-Code MC84 – Create

MC86 – Change
MC85 – Display
2. Enter the following data.
Field Name Description Default value

for BAWAN
Product Group Product Group Number -
Description Product Group Description -
Plant For which planned is the PG defined -
Base Unit Base UOM -
Members: • Materials: -
If the members of the product group are materials only
(Single-level)
• Product Groups:
If the members of the product group are also product
groups. (Multi-level)
SCS – BAWAN
End User Manual
3. Create a product group with members as materials (Single Level). Make the following
entries in the transaction screen.
Press Enter to take you to the next screen
4. Assign Members to the product group by making the following entries.

for BAWAN
Member Number Number of the material member -
Plant Plant at which this member exists -
Aggr. Factor Factor that determines how the material consumption 1
quantities of the planning object are weighted in the
planning level's consumption series.
Proportion Factor, expressed as a percentage, that defines the -
proportion of the planning level represented by this
planning object.
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End User Manual
Note:
Aggr. Factor: This indicates that, while aggregating values, the right value for this member will be added to
the above higher level.
Proportion: The sum of the proportional factors for group may be equal to 100. When disaggregating values
down the level, the value calculated will be the member’s proportional factor multiplied by the parent group
value.
5. Display Product Group in Hierarchy Graphic. (Optional)
6. Create a product group with members as other product groups (multi-Level). Make
the same entries as before but select “Product Groups” in the member’s section.
SCS – BAWAN
End User Manual
7. Assign Product Groups to the product group.
8. Display product group in Hierarchy Graphic.
SCS – BAWAN
End User Manual
2 SALES & OPERATIONS PLANNING (SOP)
2.1 PURPOSE
Sales & Operations Planning (SOP) is a flexible forecasting and planning transactions to enable sales,
production, and other supply chain targets to be reached on the basis of historical, existing, and estimated
future data. In this scenario, we carry out Rough-cut planning to determine the amounts of the capacities and
other resources required meeting these targets. SOP is particularly suitable for long- and medium-term
planning.
Sales & Operations Planning (SOP) has is feature of is its multi-level capabilities. One can plan both ways top-
down and bottom-up throughout a planning hierarchy. In standard SOP, planning is done level-by-level
planning.
In SOP, aggregation is the process in which planning data at an aggregate level is generated by the way of
totaling, copying, or averaging of key figure values. Where as in Disaggregation, planning is done through
distribution of key figure value.
SOP Mass processing may be used to:

• create a planning activity and include in it the transfer profile.
• create a mass processing job for this activity
• schedule the mass processing job.
These components will be used in CO-PA (Profitability analyses) to analyze the plan and alter if required.
Normally each month, the SOP planner is required to generate a 3-month rolling production plan at Product
family level.
2.2 CREATE SOP PLAN

2.2.1 For Materials
Procedure:
Menu Path Logistics→ Production → SOP→ Planning → For Material → Create

MC88 – Change
MC89 – Display
SCS – BAWAN
End User Manual

for BAWAN
Material Material Number -
Plant Plant The material is defined in -
Version Version of the Inactive SOP Plan -
Version Description -
Note: you can maintain any number of inactive versions as you like and then copy to active
version (A00)
3. Maintain SOP Data in the “Sales” Row.
in this step we input the sales figures and there a few more options we can make such as the target
safety stock and target day’s supply.
SCS – BAWAN
End User Manual
If the historical key figure data is already available in the system, you can import it to create a sales plan.
Alternatively, you can manually enter the Sales quantities in the Planning table, as we’ve done in this
example, by entering sales data for the next six months. As shown in the next figure, click the More
dropdown menu to see several options to create a sales plan for the product group (or for an individual
material, where applicable):
• Transfer plan from SIS
• Transfer CO-PA plan
• Forecast
• Transfer product group proportional from production or from sales
To use any of these options, the system must have significant historical data to help in effective and
reliable planning.
Tip: for faster and smoother figures entry use the Distribute function F6 or as follows:
SCS – BAWAN
End User Manual
4. Create Production Plan.
While remaining in the planning table (Transaction MC81), you can create a production plan with the
following options by clicking on Edit from the top menu bar (see next figure):
• Synchronous to sales: Sales figures are used as operations plans.

• Target stock level: The operations plan is configured in such a way that the target stock
level is reached in each period.
• Target days’ supply: The operations plan is configured in such a way that the target stock
level is reached in each period.
• Stock level = zero: The operations plan is configured in such a way that the entire stock
level is consumed.
Production plan created synchronous to sales
SCS – BAWAN
End User Manual
Depending on your business requirement, you can choose if you want the production plan to be equal to the
target stock level or if you eventually want the target stock to be zero at the end of the period. In this
example, we want to create the production plan synchronous to the sales plan. This production plan has also
taken the target stock levels into account at the end of each period.
5. Save Your Plan.
2.2.2 For Product Groups

Procedure:
Menu Path Logistics→ Production → SOP→ Planning → For Product Group → Create

MC82 – Change
MC83 – Display
SCS – BAWAN
End User Manual

for BAWAN
Product Group Product Group Number -
Plant Plant The material is defined in -
Version Version of the Inactive SOP Plan -
Version Description -
Note: you can maintain any number of inactive versions as you like and then copy to active
version (A00)
2. Maintain SOP Data in the “Sales” Row.
Proceed exactly as in creating an SOP plan for a Material step 3,4 and 5
SCS – BAWAN
End User Manual
2.3 VERSION MANAGEMENT

You can copy any version of an information structure to any other version of the same information structure.
A series of pushbuttons supports your choice of version. You can limit the scope of the planning horizon for
which the data is to be copied.
To copy data between versions of different information structures, you use a different transaction. To
activate a planning version, you copy its data to version A00. This overwrites any existing data in A00, so if
you want to keep this data you should copy it to another version first.
You also have the option to delete unwanted inactive versions
Procedure:
Menu Path Logistics→ Production → SOP→ Planning → Version Management → Copy
T-Code MC78 – Copy

MC80 – Delete

for BAWAN
Source Version -
Target Version -
Period -
SCS – BAWAN
End User Manual
A warning pops up that version A00 will be reset, agree and continue
Now check the copied data in transaction MC88 – Change SOP Plan and if necessary, make changes to the
Active version plan.
2.4 DISAGGREGATION
Note: this step is only applicable if you are using Product groups and isn’t necessary in case of planning at
material level.
A significant feature of Sales & Operations Planning (SOP) is its multi-level capabilities. You can plan both
top-down and bottom-up throughout a complex planning hierarchy. Thus, both centralized and
decentralized planning is supported.
Disaggregation is the process by which planning data at a detailed level is generated through the distribution
of key figure values from an aggregate level. The planning will be run at the central level and will be
disaggregated at Plant level.
Procedure:
Menu Path Logistics→ Production → SOP→ Disaggregation → Break Down PG Plan
T-Code MC76 – Break Down PG Plan
SCS – BAWAN
End User Manual
2. Enter Product Group Code and Plant Code and choose Active Version.
3. Dialog box will show the product group members with proportion. Maintain the data
in block Disaggregation according to the following table:

for BAWAN
Create Sales Plan Selected
Disaggregate target -
stock
Copy target days’ -
supply
Disaggregate Sales Selected
Plan
Synchronous to Selected
sales
SCS – BAWAN
End User Manual
4. Use the Macro Function to disaggregate the SOP plan.
You can now see the disaggregation results for the members of the Product group, save the
results and repeat for all product groups.
SCS – BAWAN
End User Manual
2.5 TRANSFER SOP PLAN TO DEMAND MANAGEMENT

By transferring the production plan to Demand Management you create the planned independent
requirements and determine the requirements dates and requirements quantities of the material
Procedure:
Menu Path Logistics→ Production → SOP→ Planning → For Material → Transfer Material to
Demand Management
Logistics→ Production → SOP→ Planning → For Product Group → Transfer PG to

Demand Management
T-Code MC74 – Transfer Material to Demand Management
MC75 – Transfer PG to Demand Management
2. Maintain the following Data.
SCS – BAWAN
End User Manual

for BAWAN
Material -
Product Group
Plant -
Version A00
From - To -
Transfer Strategy Production Plan for
material or PG
members
Confirm your entries. Accept all information or warning message. Choose pushbutton Transfer now. Check
the transfer log and ignore all the warning messages.
SCS – BAWAN
End User Manual
3 DEMAND MANAGEMENT
The function of Demand Management is to determine requirement quantities and delivery dates for finished
products assemblies. Customer requirements are created in sales order management. To create a demand
program, Demand Management uses Planned Independent Requirements (PIR) and customer requirements.
To create the demand program, you must define the planning strategy for product. Planning strategies
represent the methods of production for planning and manufacturing or procuring a product.
3.1 MAINTAIN PLANNED INDEPENDENT REQUIREMENTS

Usually, Demand management quantity came from SOP plan however; you can maintain it manually through
MD61. Also, you can change what was transferred from SOP as below.
Procedure:
Menu Path Logistics→ Production → Production Planning → Demand Management → Planned

Independent Requirements → Create/Change/Display
T-Code MD61 – Create
MD62 – Change
MD63 – Display
2. Maintain the following Data.

for BAWAN
Material -
Product Group
Plant -
From - To
SCS – BAWAN
End User Manual
Planning Table is displayed the independent planning requirement, which were generated in the previous
step, transfer production plan to demand management. You can also adjust the independent planning
requirement for each material if necessary.
Note: to perform splitting of PIRS into daily or weekly requirements, in the screen above go to:
Edit – Period Splitting and select Daily or weekly splitting
Save the planned independent requirements
Note: PIRs are called independent because their requirement isn’t dependent on and other materials as they
are finished product, however when these finished products are required in a certain quantity there is another
requirement this time is called dependent for the components of this finished product

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End User Manual

No part of this document may be reprinted or otherwise reproduced without written

2 Document Change Control ...................................................................................................................... 4

3 Document History ..................................................................................................................................... 4

1 Product Groups ......................................................................................................................................... 6

2 Sales & Operations Planning (SOP) .....................................................................................................10

2.1 Purpose ..................................................................................................................................................................... 10

2.2 Create SOP Plan ........................................................................................................................................................ 10

2.2.1 For Materials ..................................................................................................................................................... 10

2.2.2 For Product Groups ........................................................................................................................................... 14

2.3 Version Management ............................................................................................................................................... 16

2.4 Disaggregation .......................................................................................................................................................... 17

2.5 Transfer SOP Plan to Demand Management ............................................................................................................ 20

3 Demand Management ............................................................................................................................22

3.1 Maintain Planned Independent Requirements ........................................................................................................ 22

2 DOCUMENT CHANGE CONTROL

Review & Approval

Deliverable Reference: SAP Best Practices

Type: End User Manual V.1

Menu Path Logistics→ Production → SOP→ Product Group → Create

T-Code MC84 – Create

2. Enter the following data.

Field Name Description Default value

Press Enter to take you to the next screen

4. Assign Members to the product group by making the following entries.

5. Display Product Group in Hierarchy Graphic. (Optional)

7. Assign Product Groups to the product group.

8. Display product group in Hierarchy Graphic.

2 SALES & OPERATIONS PLANNING (SOP)

SOP Mass processing may be used to:

2.2 CREATE SOP PLAN

Menu Path Logistics→ Production → SOP→ Planning → For Material → Create

T-Code MC87 – Create

2. Enter the following data.

Field Name Description Default value

3. Maintain SOP Data in the “Sales” Row.

4. Create Production Plan.

• Synchronous to sales: Sales figures are used as operations plans.

Production plan created synchronous to sales

5. Save Your Plan.

2.2.2 For Product Groups

T-Code MC81 – Create

1. Enter the following data.

Field Name Description Default value

2. Maintain SOP Data in the “Sales” Row.

2.3 VERSION MANAGEMENT

You also have the option to delete unwanted inactive versions

Menu Path Logistics→ Production → SOP→ Planning → Version Management → Copy

T-Code MC78 – Copy

2. Enter the following data.

Field Name Description Default value

Menu Path Logistics→ Production → SOP→ Disaggregation → Break Down PG Plan

T-Code MC76 – Break Down PG Plan

Field Name Description Default value

4. Use the Macro Function to disaggregate the SOP plan.

2.5 TRANSFER SOP PLAN TO DEMAND MANAGEMENT

Logistics→ Production → SOP→ Planning → For Product Group → Transfer PG to

2. Maintain the following Data.

Field Name Description Default value

3.1 MAINTAIN PLANNED INDEPENDENT REQUIREMENTS

Menu Path Logistics→ Production → Production Planning → Demand Management → Planned

2. Maintain the following Data.

Field Name Description Default value