Overview
Overview:Unit Objectives
?APO enables the global mapping, planning and monitoring of all processes in the logistics chain at a
detailed level.
?Open standard interfaces allow a smooth integration of SAP systems (highly integrated solution for R/3),
old systems and systems from other providers.
?APO has high efficiency levels with liveCache, an SAP tool for memory-resident data processing.
?APO is purely a planning tool: Inventory management, sales order creation, order execution and
manufacturing execution take place outside of the APO system, for example in an R/3 system.
?You can use APO to create and change orders (planned, production and process orders) as results of a
planning run.
?You can linke the APO system to R/3 using the APO-Core-Interface (CIF). Data thereby remains
constant in both (APO and R/3).
?Planning with APO is covered in detail in the courses AP010 to AP230.
Classic Planning Levels
SAP AG 1999
Production Planning
MPS
MRP
Production
Control
Demand Management
Settlement
Long -Term Planning
Capacity Planning
Capacity Planning Inventory
Mgmt
Inventory Mgmt Sales &Operations Planning
Controlling
SAP AG 1999
MRP Procedures
based on consumption in the past
MRP Procedures
controlled by MRP type in Material master
MRP
Consumption-based
Reorder point planning Forecast-based
planning Time-phased planning
?
Consumption-based planning is based on consumption values in the past and uses forecasts or statistical procedures to determine future requirements. Consumption-based planning is characterized by its simplicity and is mainly used for B and C parts with a low value.
? In contrast to consumption-based planning, Material requirements planning takes current and future sales as it's reference point and is executed for the whole BOM structure. The planned and, depending on
planning strategy, actual requirements quantities trigger the MRP calculation. It produces better planning results than does consumption-based planning.
? In this course, we will be dealing with material requirements planning.
Consumption-Based Planning
using reorder point planning as an example
?Manual reorder point planning is a typical process in consumption-based planning. It is characterized by
its simplicity.
?You control the planning using a manually entered reorder point (for example, 50 pieces). During the
planning run, the system checks only whether stock has fallen below this reorder point or not (that is, whether there are less than 50 pieces in stock). If that is the case, the system triggers procurement of the amount of the lot size (a fixed lot size of 500 pieces for example).
?If schedule lines are created directly by the planning run, for example, for materials procured externally,
the administrative work for this sort of planning is minimal.
?Consumption-based planning is appropriate only for materials with demand that stays relatively
consistent. Real-time inventory management is also necessary.
Overview:Unit Summary
Exercises
Unit: Overview
Topic: Production Planning Procedure in the R/3
System
At the end of these exercises, you will be able to:
execute the steps required for the production planning process in the R/3 System.
Precision Pumps Inc uses the make-to-stock production strategy. Pumps are produced to stock and then sold.
1-1
In plant 1000, enter a demand program (planned independent requirements) for material T-F1## (replace ## with your group number). Select make-to-stock
production (LSF requirements) for the first 8 weeks of your planning period. To do this, proceed as follows:
1-1-1 Maintain the material master: Make sure in the material master for pump T-F1## in the MRP 3 view that the strategy group PP has been entered for plant 1000. 1-1-2 In Demand Management, enter the following planned independent requirements
(requirement type LSF) for material T-F1## in plant 1000. Set the planning period to week format by entering the indicator W in the planning period field in the initial screen for the transaction. Enter the following planned independent requirements for pump T-F1## in plant 1000:
(total quantity: 200 pieces)
Save your entries.
1-1-3 Starting from the MRP menu, display the stock/requirements list for material T-F1## in plant 1000. Note down the exact date of the second LSF requirement:
___________________
1-2 Starting from the MRP menu, carry out multi-level, single-item planning for pump T-F1##. In the initial screen of the planning run, enter the following creation indicators:
1-2-1 In this initial screen for single-item, multi-level MRP, save the settings you have made for the MRP run by selecting the menu path Settings -> Save.
1-2-2 Start the MRP run by choosing Enter and confirm the system warning by choosing Enter again.
1-3 Once the MRP run has been carried out successfully, the system displays the statistics.
1-3-1 Choose the pushbutton List of materials and select the row containing your pump T-F1## by selecting the button at the beginning of the row with a
mouseclick. Goto the Display of the stock/requirements list for the material.
You can now see the planned orders created for the requirements.
1-3-2 Display one of the planned orders by selecting it and choosing Display element.
Select the Component overview pushbutton and compare the order start date
of the end product T-F1## with the requirements date for the assemblies T-
B1##, T-B2## and T-B3##. Explain the logic behind the date.
____________________________________________________
Exit the display of the planned order.
1-4 In the stock/requirements list, you convert the first two planned orders into production orders, and then release each production order. Starting from the MRP menu, display
the stock/requirements list for material T-F1## in plant 1000.
1-4-1 Display the Additional data for element for the first planned order in the list.
Choose the Convert planned order into production order function. Release
the production order and save the order.
1-4-2 Repeat the operation for the second planned order.
1-4-3 Refresh the display by selecting Refresh. Make a note of the production order numbers.
Production order number 1 __________________
Production order number 2 __________________
You may have to wait a few seconds for the asynchronous
update to read the data from the queue and update it to the
database. You can access the function several times again,
until you see the production orders.
1-5 Now assume that you have produced the product, and can post the end product, the pump, to stock. (Completion confirmation is missed out for the purposes of this
training example)
1-5-1 Execute the goods movement (more precisely: Goods receipt for order) from the Inventory Management menu using the following parameters:
Movement type:101 (Movement type → Order to warehouse)
Order number:the first of the order numbers you noted down
Plant:1000
Storage location:0002.
Post the goods movement and repeat the operation for the second planned
order number.
1-5-2 Check the stock situation in the stock/requirements list and make a note of the quantity of the oldest plnd ind. reqmt: _____________________
the date of the oldest plnd ind. reqmt: _____________________
the quantity available today: _____________________
1-6 A customer arrives and spontaneously buys 8 pumps (over-the-counter sales).
1-6-1 From the Inventory Management menu, you now post the stock withdrawal to sales (i.e., a goods issue). When posting the goods movement, use the
following parameters:
Movement type: 251 (Movement type → Consumption → To sales → From
warehouse)
Plant: 1000
Storage location: 0002
Cost center: 3110 (sales pumps)
Enter the item for the material T-F1## and a quantity of 8 pieces. Post the
goods movement.
1-6-2 After entering the data, call up the stock/requirements list again.
How has the oldest planned independent requirement (noted above) been
changed (quantity of oldest planned independent requirement)?
__________________________
What quantity is now available from stock?
__________________________
Compare the two quantities and explain the new stock/requirements situation.
____________________________________________________
Solutions:
Unit: Overview
Topic: Production Planning Procedure in the R/3 System
1-1
1-1-1 Menu path: Logistics → Production → Master Data → Material Master → Material
→ Change → Immediately 1-1-2 Menu path: Logistics → Production → Production Planning → Demand
Management → Planned Independent Requirements → Create
1-1-3 Menu path: Logistics → Production → MRP → Evaluations → Stock/requirements
list
Date of second LSF requirement: Varies
1-2
Menu path: Logistics → Production → MRP → Planning → Single-item, Multi-level
1-3
1-3-1
1-3-2 Explain the logic behind the date. The requirements dates for the assemblies
coincide with the order start date of the planned order for the finished product. The assemblies are therefore available at the start of production for the finished product.
1-4 Menu path: Logistics → Production → MRP → Evaluations → Stock/requirements list 1-4-1 1-4-2
1-4-3 Production order number 1: Varies
Production order number 2: Varies
1-5
1-5-1 Menu path: Logistics → Materials Management → Inventory Management →Goods Movement → Goods Receipt → For Order
1-5-2 the quantity of the oldest plnd ind. reqmt: 25
the date of the oldest plnd ind. reqmt: Varies
the quantity available today: 50
1-6
1-6-1 Menu path: Logistics → Materials Management → Inventory Management →Goods Movement → Goods Issue
1-6-2 Oldest planned independent requirement (noted above): 17
Available quantity from stock: 42
Explanation: 8 pumps have been sold and the corresponding stock withdrawal
has been posted. The available quantity thereby falls from 50 pieces to 42 pieces.
The sales reduce simultaneously the (LSF) planned independent requirements
that you entered at the start. This follows the FIFO rule (first in – first out),
whereby the oldest requirement is reduced first. It has therefore sunk from 25
pieces to 17 pieces.