Overview

What are the PP/DS Components

What does PP/DS really
accomplish What should it mean?
– Optimizing , Block
Planning
PP/DS – Step by Step
– PP Heuristics Planning
– DS Optimization
– Set up Matrix
Bottom Line
Clearly Define the PP/DS Components
and Functionality
Differentiate Between Heuristics and Optimizer
Identify common Block Planning and Set up
Matrix requirements
Discuss some specific actions that can help you start to
get this difficult process under control and
understood in your organization
 • Demand Plan
• Supply Plan
• Rough Cut Capacity
Plan
• S&OP Forecast • Production Plan
• Annual Operating Plan • Finite Plan &
(Budget)
Tactical
• Standard Cost
Schedule
• Brand Plan • Labor Plan
• Strategic Logistics Plan • Materials Plan
• Set Up Matrix

Operational

Strategic

• Strat Plan
• CapEx Plan
• Portfolio Plan/Product
Roadmap
• IT Roadmap
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5

PP/DS is primarily divided in two

areas
Release Demand Run SNP Optimizer to
Plan to SNP produce Supply
Plan

* Depending on the business Production Planning

requirement may require more than * PP heuristics
one run (Production Plan)

Convert supply elements Orders * DS Heuristics

(production or purchase ) (Detailed Feasible Plan)

Interactive detailed planning in

DS planning board.

Detailed Scheduling
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6

Feature Key Benefits

–
s
Multi-Level Production Plan – The How, When, and Where
– Capable-to-Promise resources and materials should
– Supports lot quantity be deployed.
– Master Planning for Materials
calculations
– and capacity (Resource
Supports the Loads)
following business – Realistic Delivery Date
models

confirmation
Make to Stock
 Make to Order
 Make to Order with Order
BOM
 Engineer to Order
 Flow Manufacturing
– Order Pegging
– Integrated with Alert
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7

Feature Key
s Benefits
– Scheduling – Optimal production
Optimizer sequence (feasible and
– Optimal Sequencing executable)
– Allows simulation of planning
– Flexible & Graphical
scenarios for optimal
Activity Scheduling
schedule
– Backlog – Optimization based on
Resolution actual constraints
Planning
– What-If Analysis &
Simulation
– Forward &
Backward
Scheduling
 Release from SNP
to

ECC APO
PP/DS

PP Heuristic
&
PP Optimizer
Sales Orders
Stk. Trnsfr. Orders CIF
Inventory
Process Orders Evaluate the Planning
Purch. Orders Results

Execution: Interactive Planning: Create,

Process Order Release Change, Reschedule Orders in
& Production the Planning Board
Confirmation
Elements that compliment
PP/DS
Alert Monitor (Exception Management)
Heuristic Framework (User Friendly Development
Area) Simulation versions (What If )
Standard Reports (Several Standard Reports)

3
6 5 4 2 1

time
Page 10

Application of rules
Customer-specific rules using the Heuristic Framework
Scheduling result is easier to understand and
influence Mostly limited to one bottleneck resource
for Multi-Level Heuristics)
(except
Only applicable to scheduling problems with
limited (modeled) complexity (e.g., no loops)
Better suited for workaround solutions if
constraints cannot be modeled properly
Heuristic finds only one solution which is always a result of the sequence of products or resources planned.
There are winners and losers in Heuristics. It is a step by step procedure
Page 11

Sequence
Simultaneous consideration of multiple operations, resources, and BOM
Optimization
levels
Suited for complex (modeled) scheduling problems
Better suited if there is an optimization potential which cannot
be described by simple rules
– e.g., if the structure of the scheduling problem changes depending
on the
order mix
Scheduling result are more difficult to understand and
influence Helicopter view over all resources and products and
plans.
– A problem at one end of the resource network
– Caused by a good solution on the other end of the resource
network

– Optimizer can go back and solve the issue over the whole network and come
up with a solution that is feasible for all resources in the network.
Page 12

Optimizer – The benefit of minimizing sequence dependent setup times, reducing

lead-times and to schedule dependent demand according to the priority of the
demand.
Pegging Constraints & Shelf Life are the most common and complicated
requirements
Optimization: Change of Production dates/Sequences and resource assignment of
existing operations/activities with regard to the following criteria (no creation or
deletion of orders)

© SAP 2012
 13
Demand Planning Final Forecast (12 Months) per product family (CBF)

SNP Engine HEURISTICS CAPABLE TO MATCH OPTIMIZER

Run with a • Plans the whole Network (Multilevel Planning) Run in the sequence of the pre-defined
• CTM can execute Bucket and Time Continuous Planning production cycle considering the following:
predefined *Storage cost
Horizon • Mixed Resources can be used by SNP with bucket and
time continuous definitions *Order Cost (production cost & setup cost)
•Capacity • Prioritize demand and categorize your supply *Profit Margin
Leveling must accordingly
be run to *Penalty of Late orders
achieve a • Block Planning - considers characteristic values of orders
during planning and creates orders with corresponding *Non-delivery
somewhat
constrained characteristic values relevant for variant configuration or *Procurement cost
capacity plan for characteristics-dependent planning (CDP)
 The result: the Optimal Production
• Planning with products configured for CDP, considers Quantity for
block definitions of resources and fixed blocks. the Product Family

Prod. Qty is transferred to The Optimal Production Quantity is the preliminary size of the block.
PP/DS PP/DS to create the This determines the frequency of the block in the production cycle.
Blocks

Create Blocks in Resource Master. Generate week schedule for the Production Lines.
Private party on Saturday….. No

SNP make the following SNP

Orders
– Take place in Planning Periods or Buckets
decisions.
 Source of Supply
– No defined sequence
 Approximate Production Date – Lot sizes correspond to Maximum quantity
 Quantity for Planning Period

SNP: Planned orders in PPDS: Calculates daily, hourly

weekly buckets schedules

SNP order(Bucketed Order)

100 SNP horizon

Last Week PP/DS Horizon SNP planned orders in the SNP horizon will be
converted to detailed schedule (PPDS orders)
W1 W2 W3 W4 W5
PP/DS Horizon
SNP horizon
Today 100
W2 W3 W4 W5 WK6

Conversion of Detail Plan Optimization / PP/DS order - (continuous time scale with
to Process orders Sequencing start time and end time)
Page 15

The SNP and PP/DS differences

Are you running or planning to run PP/DS
on a single or multiple plants?
Answer on the right hand side of your
screen

A. Single
B. Multiple
17

© SAP 2012
Page 18

© SAP 2012
 Customer orders

Blocks
Shift schedule

t
Requirement get automatically scheduled
according to blocks schedule
© SAP 2012
Page 20

A Matrix
contains
– For each possible setup transition at a single resource
 The setup times
 The setup costs that are necessary to change the setup status of the
resource to another setup status.
You can use a setup matrix to model sequence-dependent
setup times and setup costs for a single resource.
Based on the setup matrix, the system will do the following:
– Determines the correct setup
– Determine optimal operation sequences (with regard to setup
time
or setup costs) during optimization
– Determine the production process model for creating a setup
order and clean-out order during campaign optimization
 Prod A Prod B
Time

Maintain Setup Matrix- Prod A Time Prod C

/n/sapapo/cdpsc7
Display Setup Matrix- Prod B Time Prod A
/n/sapapo/
cdps_setup Prod B Time Prod C

Prod C Time Prod A

Prod C Time Prod B

 Setup Group: Classification of an operation according to a characteristic that is
relevant to planning and which the system should consider during scheduling and
rescheduling.

Maintain Setup Group- Group A

Time Group B
/n/sapapo/cdpsc6
Group A Time Group C

Group B Time Group A

Group B Time Group C

Group C Time Group A

Group C Time Group B

While performing detailed
scheduling
– System will read the setup matrix that defines the sequence-
dependent setup time.
Demand A C B A

Setup time on resource Setup time in minutes

Prod. A B C
Product A:
A 0 10 20
B 30 0 10 Product
C 40 30 0 B:
Finite Schedule
time
20 30 Product C: 30
A Setup C Setup B Setup A

Optimal Schedule
Set- Set-
A A up B up C
10 10
What is the level of constraints you currently face
in your production environment ?
Answer on the right hand side of your
screen

A. High Fixed Constraints

B. High Variable Constraints
C. Medium Fixed Constraints
D. Medium Variable Constraints
E. Low Fixed Constraints
F. Low Variable Constraints
Page 26

Graphical User
Interface
– Drag and Drop
– Drill Down to the lowest
Level
– Work Area
– Navigation Area

© SAP 2012
27

Shows the planning elements graphically in a highly customizable

interface Reports can be triggered on the fly.
© SAP 2012
28

Interactive What If analysis can be adopted for the

actual plan

Multiple schedules can be developed and then merged with the active plan
© SAP 2012
 29

Opt: Run what if analysis if extended the block

Requirement/Receipt Alerts: Re-schedule if the block is adjusted.
– Product Too Late/Early Setup PP/DS
Shelf Life Alerts: Alert Custom Capacity Alert Sent to
– Profile the planner (e.g. 70% ).
Shelf Life too short/ long
– Receipt with out Pegging Relationship
Run PP/DS
Orders in Past Alerts: Planning
– Sales Order in the past
– Receipt due date/time in past.
Adjust Plan
Order Alerts-Product Dependent: View Alerts
– Order creates surplus Interactively
– Order has shortage

Days’ Supply Alerts: Notify Person Analyze Alert

– Below minimum days’ supply Responsible Situation
– Required days’ supply exceeded

Average Resource Utilization(PP/DS):

– Average resource overload Action
– Average resource underutilization 1. Do nothing.
– Capacity overload on bucket 2. Extend the block.
resource 3. Fix the block.
4. Yell at Demand Planner for the forecast being too high.
Inventory Alerts:
– Stock fallen below safety stock level
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0

PP/DS fulfills the need of production planner by

– Creating feasible plan taking into consideration constraints
– Provides the tools needed to plan and schedule
Insure a crisp transition from SNP to PP/DS
– SNP should do the heavy lifting with PP/DS putting the icing on
the cake
– Insure high transparency between SNP and PP/DS
Understand the type of scheduling you what to do
– Block, Campaign …
Understand the engine that will drive your PP/DS
– A large variety of heuristics are available to plan products
– The ability to build your own Heuristics
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 For More Information Contact:
Jaime Reints
412.733.5011
jaime.reints@plan4demand.co
m