Overview

SAP APO (Advanced Planning and Optimization) application has been transformed into SAP IBP (Integrated Business
Planning) and S/4HANA PPDS.

 PP/DS planning and scheduling features available in SAP S/4HANA

 Constraint-based capacity planning, scheduling & optimization
 Heuristic framework
 Industry-specific features (RPM, CBP etc).
 Simulation versions.
 Supports various manufacturing models (MTO/MTS)
 Simplicity and Seamless Integration
 One coherent application, consistent look at feel, intuitive navigation PP/DS is an integral part of S4/HANA (not
an add-on, not a side-by-side installation).
 Simplified master data and integration model maintenance.
PPDS Advanced Functionality
 Production Plan Heuristic
•Application of rules
•Customer-specific rules using the
Heuristic Framework Scheduling result
is easier to understand and influence
Mostly limited to one bottleneck
resource (except for Multi-Level
Heuristics)
•Only applicable to scheduling problems
with limited (modeled) complexity (e.g.,
no loops)
•Better suited for workaround
solutions if constraints cannot be
modeled properly

Note : 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
 Heuristic for Production planning

Product Heuristics Production Planning Run Service Heuristics

Optimization SAP_PP_008 SAP_PP_019

Fix Pegging
Static Period SAP_MRP_001 Rescheduling Relationship
Procedure Product Planning ( According Bottom Up
to low level code) SAP_PP_011
SAP_PP_002 SAP_PP_005 Cont I/O Delete Fix Pegging
Plan Standard Lot Part period balancing

SAP_PP_012
SAP_PP_003 SAP_PP_006
Change order Priority
Plan shortage Quantity Least unit cost SAP_MRP_002 SAP_PP_009
Product Planning ( Plan
component immediately) Rescheduling
SAP_PP_018
SAP_PP_004
Plan shortage quantity in
SAP_PP_013 Bottom Up Generate Safety stock in
Live cache
three Horizon Graff Procedure

SAP_PP_020
SAP_PP_007 Stage Numbering
Reorder Point Planning SAP_PP_010 Algorithms

Rescheduling
SAP_PP_C001
Planning of Standard Lot for
Top Down
Cont I/O
 Basic heuristic Functions

Name Use/Short Description Explanation

SAP_PP_002 Planning Standard Lots You can use this heuristic to create procurement proposals for uncovered
product requirements with standard lot-sizing procedures.

SAP_PP_007 Reorder point planning This heuristic creates procurement proposals if the available stock falls below
the reorder point.
SAP_MRP_00 Product planning (comp. according You use this MRP heuristic, for example, if you want to execute procurement
1 to low-level code) planning according to low-level codes for many products (MRP planning run).

SAP_PP_008 Rescheduling: Bottom-up for This heuristic tries to reschedule the dates/times of stock transfer
continual input/output requirements and dependent requirements for products with continuous
requirements and receipts, so that they are covered on time by existing
receipts
SAP_PP_010 This heuristic tries to adjust the availability dates/times of receipts for products
Rescheduling: Top-down with discrete requirements and receipts, so that they cover existing
requirements on time.
SAP_PP_019 Fixing Heuristic You can use this heuristic, which is based on the algorithm
/SAPAPO/HEU_PEG_FIX_CREATE, to create fixed pegging relationships
between requirements and receipt elements. This heuristic is a product
heuristic
Some Basic Heuristic used by our existing Client

Standard Heuristic
• SAP002 – Remove Backlog heuristic to reschedule the backlog in the production planning run and in the
DS planning board ; that is, you can automatically reschedule the operations that lie in the past in the
planning period to the current date or in the future.
• SAP003 - Schedule sequence manually -Heuristic to do the following in the DS planning board :Create a
scheduling sequence of your choice for a group of selected scheduled operations, in the DS planning board, you
can manually put selected operations into a new sequence on a graphical list interface when you call up the
heuristic.
• SAP_DS_03 - Fixing interval -The heuristic enables you to define fixing and planning intervals relative to the
current date.

Custom Heuristic
• Z Priority Heuristic – To Assign Priority to the orders
• Safety Stock – To consider Safety stock as real requirement in PPDS
• Sequencing Heuristic - Sequencing according to the Component
Optimizer

PPDS optimization is executed after an infinite MRP run has been executed
During optimization, the system carries out finite scheduling to achieve a feasible production plan.
The optimization evaluates the dates, the resource allocation and the sequence of activities in the planned scheduled ,
based on the planning-relevant variables.
PPDS optimizer does not create or delete orders it just reschedules the order created by Heuristics.
Simultaneous consideration of multiple operations, resources, and BOM
levels
Better suited if there is an optimization potential which cannot be described by simple rules
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

Note: 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
 Cost Minimization

•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)

– 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.
Optimization Steps Examples Used by our Existing Client

Work center

Manufacturing – Make Pre-Assembly- Make to Assembly – Make To

to Stock Stock order

1. Sorting the Assembly area considering only the customer requirement date
2. Backward Scheduling for all Work center Excluding the Assembly area ( Close to customer requirement date
3. Forward Scheduling for 4 week for Preassembly area.
4. Forward Scheduling for 4month for Manufacturing Area ( Capacity Utilization and avoiding missing Parts)
Setup Matrix Functionality

• A Matrix X+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
 •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.

Example
While performing detailed scheduling, – System will read the setup matrix that defines the sequence- dependent
setup time.
Set Up Matrix Functionality Used by our Existing Client

Set up Groups are defined based on the Diameter of the Product, Products With same Diameter falls under one
group. Set up group are assigned to Product in routing
The Setup Matrix is a table in PP/DS that holds the timings and the costs of the changeovers between different
groups of manufactured products.
Set up Matrix is assigned to a resource.

Optimizer Consider the Setup matrix during Planning and gives a schedule minimizing the Set up time.
Scheduling with Alternate resources

Demand P1 P1

Scheduling
P2 P2

Without Primary
Resource P1 P2
alternates

n
Directio
Alternate 1 P2

Alternate 2 P1

Scheduling Horizon- inside Scheduling

Horizon
Demand P1- Product 1

Planned order P2 – Product 2

1
3
Alerts
Monitoring
Types of Alert
Planning by Exception •Requirement/Receipt Alerts:
• Product Too Late/Early
•Shelf-Life Alerts:
• Shelf Life too short/ longReceipt with out Pegging
Relationship
•Orders in Past Alerts:
• Sales Order in the past
• Receipt due date/time in past.
•Order Alerts-Product Dependent:
• Order creates surplus
• Order has shortage
•Days’ Supply Alerts:
• Below minimum days’ supply
• Required days’ supply exceeded
•Average Resource Utilization(PP/DS):
• Average resource overload
• Average resource underutilization
• Capacity overload on bucket resource
•Inventory Alerts:
• Stock fallen below safety stock level
Alerts helping our client to better analyze the situation and resolve the problem

• Order in the Past Alert

• Uncovered Demands
• Product too Late
• Good receipt in the Past
• Inventory Alert
• Over Coverage
Planning Board Functions
• Reschedule operations on the planning board • Save to simulation version
• Undo operation
• Order Creation
• Heuristic execution
• Order Deletion
• Visibility and Time scale

• Order fixing and unfixing

• Drag and Drop
• Fixing resource intervals • Change order quantity
• Multiple loading • Maintain Downtime
• Viewing alert monitor

• Display logs
Planning board functions- Heuristic Execution
In menu bar click on Functions
-> select heuristics->choose
the required heuristic to be
executed

Select resources on the left

pane of the planning board
Multiple resources can be
selected by pressing on the
CTRL button on keyboard
and clicking the resources
Visibility and Timescale
To hide Non-working time on the planning
board, Go to Menu bar->Settings-
>Visibility-> Hide Non-working time
 To adjust the timescale and zooming
Zoom in and options on the planning board, Go to
Zoom out Menu bar->Settings->Timescale
buttons
Order fixing and unfixing

To fix or unfix the order, select

the order on the planning
board and right click on the
mouse, Select the options
Fix/Unfix respectively
Viewing Alert Monitor

To view alerts from DS

planning board click
Alert monitor button
PPDS - Reporting
Reporting that our exiting client use making the planning easy and simple to analyze

1. Resource Utilization Report – To Analyze Overload/under Load resource capacity

2. Extended Operation – To Check the Status of the Operation
3. SAP Provided Missing Part Information System, Detailed list
•PP/DS is planning and scheduling tool , execution would take place in S/4
•Products can be planned both in PPDS and S/4, we need to decide which
product need advanced planning.( Right picture shows the correct
sequence of product to be planned in PPDS)
•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, characteristic based planning, forward, backward
•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 custom Heuristics