OLTP - PP/DS Scenario (SAP Library - SAP Advanced Planner and Optimizer (SAP APO))

OLTP - PP/DS Scenario

Purpose

The component Production Planning and Detailed Scheduling (PP/DS) enables you to plan multi-site production while taking into account product and capacity constraints with the goal of reducing lead times and increasing due date performance. PP/DS is designed to plan critical products, for example, with long replenishment lead times or that are produced on bottleneck resources.

APO is a planning tool. Execution functions, such as confirmations, goods receipt, purchasing, and so on, are performed in an OLTP system.

The OLTP system also provides the APO System with data relevant for planning (master data and transaction data). Products are planned in the APO System and the planning results are transferred back to the OLTP system. If necessary, planning is completed in the OLTP system when, for example, not all products of a BOM structure are planned in APO.

Which Products Should You Plan in APO?

Type of Planning	Recommended in APO	Possible in APO	Not Recommended in APO	Not Possible in APO
Externally procured products with long replenishment lead time	X
All in-house products produced on a bottleneck resource	X
All products that were planned using MRP in a standalone OLTP System		X
Products planned using reorder point planning (non-critical products)			X
Products planned using forecast-based planning (non-critical products)			X
Products planned using time-phased materials planning (non-critical products)				X
Products planned using Kanban (non-critical products)				X

We recommend planning critical products and critical components in APO and non-critical products and components in the OLTP System. However, if you plan a component in APO, you must also plan all components in the BOM path up to the BOM header product in APO. If you plan a component in the OLTP System, you must also plan all sub-components in the OLTP System.

Prerequisites

APO and R/3 System Prerequisites

For more information on system prerequisites, see the Checklist for Setting Up the System Infrastructure.

R/3 Settings

To exclude the products that are to be planned in APO from material requirements planning in the R/3 System, you must define an appropriate MRP type. To do this, proceed as follows in the R/3 System:

In Customizing for MRP under Master data ® Check MRP types, define a new MRP type by choosing New entries. In the MRP procedure field, enter the X indicator for Without MRP, with BOM explosion.
Enter the new MRP type for these products in the MRP data of the R/3 material master records.

To ensure that customer requirements are created for materials that are not included in planning in the R/3 System, you have to change the settings in Customizing for Sales and Distribution. There are two possible options:

In Customizing for Sales and Distribution, under Sales ® Sales documents ® Schedule lines ® Define schedule categories, set the schedule line category CN for No mat. planning. Set the Req./Assembly indicator to ensure that requirements are transferred.

The disadvantage of this option is that customer requirements are now created for materials in all systems, not only for materials that are not planned in the R/3 System or the APO System.

In Customizing for Sales and Distribution, under Sales ® Sales documents ® Schedule lines ® Assign schedule categories, you can define when which schedule line category is to be used. This is dependent on the item category in the sales order and the MRP type. You create a new entry in the schedule line assignment table for the required item category and MRP type you have defined for products to be planned in APO. You can thus use the schedule line category CP (stands for MRP) in order to allow customer requirements to be created.

A production process model (PPM) consists of a BOM and routing (in the case of process industries, a material list and a recipe). You therefore need to specify which routing is to be assigned to which BOM in the R/3 System to enable a PPM to be created by APO when you transfer master data. You do this by defining a production version in the material master records of the products produced in-house that are to be planned in APO and entering the routing number. To do this proceed as follows:

In the R/3 material master, create a production version by choosing Production versions on the MRP 4 tab. Enter the version number, description, and validity period and then choose Details. In the Planning type field, enter the routing number in the Group field and N for Routing in the Type field.

APO Core Interface in R/3

You have performed an initial transfer of the master and transaction data to APO using an integration model in the core interface. You must transfer the master data of products that are to be planned in APO, and the master data of all their components. The data is transferred to your active model 000 and your active planning version 000.

Customizing for APO

In Customizing for APO, choose Production Planning and Detailed Scheduling (PP/DS) ® Global Settings and make the following settings:

Global Parameters and Defaults for APO PP/DS

Customizing	Use
Maintain Number Ranges for Orders	You use the number ranges to allow orders that are created in APO to be assigned an internal number.
Maintain Global Parameters and Defaults - Schedule Orders: Strategy Profiles	You use strategy profiles to control detailed scheduling for: Interactive planning (orders that are scheduled or rescheduled in interactive planning) R/3 integration (orders that are transferred from the R/3 System to the APO System) Planning run (orders that are scheduled or rescheduled in the planning run) Capable-to-Promise Conversion of SNP -> PP/DS (orders that are used in the conversion of SNP orders to PP/DS orders) BAPI (orders that are transferred to the APO System via BAPI)
Maintain Global Parameters and Defaults: Categories for PP/DS	You use the categories to display the appropriate description of the receipts and requirements in the evaluation screens of Production Planning and Detailed Scheduling. You only need to enter categories for non-R/3 OLTP Systems, as APO is preconfigured for R/3. You maintain the categories in Customizing by choosing Global ATP Check ® General Settings ® Maintain Categories.
Explode BOM Can 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 routing is to be exploded in the R/3 System. To allow for better system performance, we recommend exploding the PPM in APO.

APO Master Data

You have created a model in the Supply Chain Engineer.

You have created a planning version for the model and you have set the PP/DS: Change planning active indicator for the planning version.

You have assigned the resources to the model in the Supply Chain Engineer.

You have assigned the production process models to the model.

You have maintained the transportation lanes between locations in the Supply Chain Engineer to model the transfer and delivery of products.

To allow the procurement option with the most favorable costs to be selected during automatic planning:

You have maintained the costs for products produced in-house in the production process model.

You have maintained the costs for the transportation lanes in the Supply Chain Engineer (for products procured externally and stock transferred from other locations).

You have maintained the necessary APO product master data on the PP/DS tab.

Settings in APO Product Master

Setting	Consequences
Automatic planning immediately	If you select this indicator for a finished product and its components, the system plans these products automatically.
Automatic planning in the planning run	If you select this indicator for a product, the system creates a planning file entry for the product every time a change relevant to planning occurs. This product is then planned the next time you execute a production planning run in net change mode.
Manual planning with check	If you select this indicator for a product, the system searches for an existing suitable receipt element. If none are available, you have to create an order manually to cover the requirements. Alerts are created in the case of product shortages.
Manual planning without check	If you select this indicator for a product, the system does not search for a suitable receipt element. The product is always considered to be available. Alerts are created in the case of product shortages.
In the Explosion field, set: Explode production process model	If you do not enter a value, the default from Customizing is used (Customizing for Supply Chain Planning, under Maintain Global Parameters and Defaults). Ensure that you set Explode production process model as the default. You also can explode the BOM and routing in the R/3 System. However, this is not recommended since it affects system performance.

Data Flow

Before you can start planning in APO, you must execute an initial data transfer from the R/3 System to the APO System.

Transferring master/transaction data

The following data can be transferred from the OLTP system to APO:

Master Data Transferred from R/3 to APO

R/3 Master Data	Transferred Master Data in APO
Material master records	Product master records
Plants (storage locations, distribution centers)	Locations
Vendors	Locations
Production process model (BOM/material list, routing/recipe and production version)	The BOM and routing from the R/3 System are created as a PPM in APO.
Work centers	The capacities of the work centers are created as resources in APO.
Customers	Locations
Scheduling agreements	External procurement relationships
Contracts	External procurement relationships
Purchasing info records	External procurement relationships

Transaction Data Transferred from R/3 to APO

R/3 Transaction Data	Transferred Transaction Data in APO
Sales orders	Sales orders
Production/process orders	Production/process orders
Manual reservations	Manual reservations
Purchase requisitions/orders	Purchase requisitions/orders
Planned orders	Planned orders
Planned independent requirements	Planned independent requirements
Stocks	Stocks
Classes and characteristics	Classes and characteristics

Later, changes to data in the master or transaction data are filtered and routed automatically through an active data channel, which uses ALE and BAPI technology.

Stock and requirements information is transferred automatically (via RFC).

An order created in the R/3 System is transferred automatically to APO. Procurement, transport and planned orders that are created in APO are transferred automatically to the OLTP system. Any changes made in the APO System are transferred automatically to the OLTP system and vice versa.

Scenario

This scenario describes generic order processing in APO and OLTP without making reference to the source of the requirements. The process described here only deals with products produced in-house. For information on how externally procured products are planned in APO, see Scheduling Agreement Processing Using APO and an OLTP System and Planning and Source Determination for External Procurement.

The processes involved for products produced in-house include:

Automatic planning in APO

Planning in the production planning run

Completion of planning in OLTP for non-APO components

Interactive planning in APO

Execution in R/3

Process Flow

The graphic below depicts the process flow of an order in APO, starting from the entry of a requirement in APO, through to the goods receipt in OLTP system.

Process Flow of an Order Produced In-House in APO and R/3

Automatic Planning in APO

There are two methods of automatic planning in PP/DS: Automatic planning immediately and Automatic planning in the planning run:

You use automatic planning immediately for multi-level planning of products that use lot-for-lot order quantity or fixed lot-sizing procedures.

You use automatic planning in a planning run to plan products using other lot-sizing procedures that are available as heuristics, such as period lot-sizing or purchase order optimization heuristics.

You can define how the product is to be planned in the PP/DS tab of the product master. Both types of automatic planning are triggered when:

New requirements are transferred to PP/DS
Requirements are changed
Stocks are moved
Product master data is changed
The production process model (PPM) is changed
Other changes relevant to planning occur

Process for Automatic Planning Immediately

New or changed requirements must be covered. The APO System firstly attempts to cover the requirements with existing stock or orders. If sufficient stock with appropriate schedules is available, planning is complete. The APO System assigns the requirements to the receipt elements using pegging.

If there is not sufficient stock to cover the requirements for a product, APO creates corresponding orders to cover these requirements. APO performs a net requirements calculation to determine the total order quantity. The following are taken into account during this calculation:

Lot-size

Scrap

Rounding values

APO determines how the order is to be procured using the procurement type you defined in the product master. The system creates planned orders or purchase requisitions respectively depending on whether the product is produced in-house or procured externally.

If you have defined several procurement options, APO selects the alternative with the most favorable costs, provided that you have maintained the costs in the production process model (for products produced in-house) or in the transportation lanes of the Supply Chain Engineer (for products procured externally).

APO then schedules the order.

For external procurement, the planned delivery time of the product, which is defined in the product master, is used.

If the stock is transferred from another location, the transport duration that is defined in the transportation lanes in the Supply Chain Engineer is used.

For in-house production, APO explodes the PPM and performs Detailed Scheduling. Scheduling is based on the operation durations defined in the production process model; that is, the start and finish dates of the order are based on the start of the first operation and the end of the last. If you have defined Finite Scheduling for resources, capacity is also taken into account during this process. The exact procedure for scheduling depends on the scheduling strategies you have maintained.

The requirement quantities as well as the availability dates and times have now been determined automatically by APO. Automatic planning is now complete.

The planned orders created in APO are transferred to the OLTP system automatically. The output of these orders is firmed, meaning that the order quantities are not changed during automatic planning. Activities, however, may be changed. This type of firming corresponds to order header firming in the R/3 System.

The input of an order (components) is firmed as soon as you make any changes manually. The production process model (PPPM) is not re-exploded for the order if the PPM changes. This type of firming only affects the components and corresponds to firming the explosion in the R/3 System.

For detailed information on make-to-order production with R/3 and APO, see Availability Check Calling PP/DS.

Automatic Planning in the Planning Run

You use automatic planning in the planning run to plan products using heuristics that you have defined for each product. You are able to use your own heuristics or you can use heuristics provided by SAP. A large variety of heuristics are available to plan products that address particular planning problems, including various lot-sizing heuristics and purchase order quantity optimization. When automatic planning is triggered, a planning file entry is created for the products. These products are then planned in the next net change planning run. An advantage of planning products in the production planning run, as opposed to automatically and immediately, is that, you can control when and how often products are planned. You are therefore able to improve system performance by executing planning runs at less busy times of the day.

You can plan products according to the heuristic defined in the product master by starting the production planning run using one of the following heuristics:

SAP_MRP_001: Product Planning (Comp. acc. LLevl Code)

You use this heuristic to plan products according to the heuristic defined in the product master for each product. The heuristic is carried out for the top level product using low-level coding, that means if a component is not available on time, the top order is not rescheduled. The components that are defined as being planned automatically (both immediately or in planning run) are then planned using the heuristic defined in the product master. If you have not defined a heuristic for a product in the product master, the APO System uses the default heuristic you have entered for the Product heuristic in Customizing for Production Planning and Detailed Scheduling, under Global Parameters ® Maintain Global Parameters and Defaults.

Components that are defined as being planned manually (both with and without availability check) are not taken into account during the production planning run. The availability check for components planned manually with check is not carried out.

SAP_MRP_002: Product Planning (Plan Comp. Immdiately)

You use the product heuristic to plan products according to the heuristic defined in the product master for each product. The heuristic is carried out for the top level product. Components that are defined as being planned automatically and immediately are planned using a simple lot-sizing heuristic. The planning with this heuristic is carried out according to multi-level logic, that is, if a component is not available on time, the top level order is rescheduled. For the components that are defined as being planned automatically in the planning run, planning file entries are created. The product heuristic can be executed in interactive planning and during the production planning run. If you have not defined a heuristic for a product in the product master, the APO System uses the default heuristic you have entered for the Product heuristic in Customizing for Production Planning and Detailed Scheduling, under Global Settings ® Maintain Global Parameters and Defaults.

The availability check is carried out for components that are defined as being planned manually with availability check.

You can plan just the products that have undergone a change relevant to planning (net change planning run) by selecting the Planning file entry created indicator on the initial Production Planning Run screen. If you do not select this indicator, all products in your selection are planned.

Planning in the Production Planning Run

In addition to planning the products defined as being planned using automatic planning in the planning run, the production planning run can also be used to plan manually planned products and to apply heuristics to products planned using automatic planning immediately. Manually planned products are usually critical products that require particular attention when planning. You can start the production planning run for a selection of products and plan these products according to one or several heuristics.

Less critical products that are planned using automatic planning immediately, can be replanned using a heuristic in order to apply a particular lot-sizing heuristic. For example, you use automatic planning immediately to carry out a multi-level availability check for products and then apply a period lot-sizing heuristic to group the receipt elements into weekly lots.

The production planning run can also be used to apply other types of heuristics whose planning focus is not on products, as in the case of the production planning heuristics, but rather on resources, orders and line networks. Standard heuristics exist in the following areas:

Detailed scheduling

These heuristics are scheduling heuristics, whose planning focus is on resources and operations. Examples of these heuristics include Reduce lead times and Resolve backlog.

Repetitive manufacturing

These heuristics generate planned orders to cover requirements taking into account the resource capacity for each period. The focus of planning is on resources, line networks and products.

Model mix planning

This heuristic optimizes the sequence of configurable products while taking any restrictions into account. The focus of planning is on resources and line networks.

Completion of Planning in OLTP for Non-APO Components

When a requirement is transferred from the R/3 System, only the products relevant to APO are transferred from the R/3 System to APO. APO plans these products, which represent a component list, for example, component list A. The orders for component list A are transferred back to the R/3 System. The bill of material is re-exploded in the R/3 System, producing a new component list, for example, component list B. A comparison of the two lists is performed in the R/3 System:

Comparison of Component Lists in R/3 and APO

If component is:	then:
in lists A and B	List A is valid. The quantity and date determined by APO are used.
only in list B	Planning of the component is completed in the R/3 System. The quantity is determined during the BOM explosion and the date is determined from the start of the first activity of the order.
only in list A	This is not permitted. The complete bill of materials must be maintained in the R/3 System.

The components that are to be planned in the R/3 System (only in component list B) are planned during the next MRP run.

Interactive Planning in APO

In APO, you can then interactively plan products to improve the planning situation and to plan any products that are defined as being planned manually in the product master. The following tools are available to improve the planning situation:

DS planning board

Product planning table

Heuristics

Optimizer

To plan any products manually, you can create orders and change dates and quantities directly in APO.

Execution Functions in APO

The conversion of planned orders and purchase requisitions into production orders and purchase orders respectively can now be triggered in the APO System directly. You do this by setting a conversion indicator for the orders you wish to convert. The orders are then sent to the connected OLTP System and are automatically converted. The converted orders are sent back to the APO System with a changed ATP category, for example, Preq for purchase requisition becomes PchOrd for purchase order.

You can convert planned orders and purchase requisitions either:

Individually in interactive planning

By executing mass conversion using selection criteria.

Execution Functions in R/3

The following execution functions are performed in the R/3 System; the table shows how the events are registered in the APO System:

Interaction between R/3 and APO during Execution

Execution in R/3	What happens in R/3?	What happens in APO?
ATP Check	The ATP-check triggered by the conversion is carried out in APO.	The ATP-check triggered by the conversion is carried out in APO.
Scheduling to determine costs (Controlling)	Scheduling is performed to determine costs. This information is only required by Controlling. The dates determined here are not used for production planning.	The dates determined during Detailed Scheduling in APO are not changed.
Print pull list	You print the pull list in the R/3 System.
Withdraw components	The requirements and component stock are reduced.	The requirements and component stock are reduced in the APO System synchronously.
Confirmation	Quantities are reduced. When you partially confirm quantities, the operation is moved to the confirmed start date and keeps its original duration. When you confirm completion of an operation, the operation receives both the confirmed start and finish date.	Quantities are reduced and the operations receive the same dates as in the R/3 System synchronously. Completion confirmation or final delivery leads to reduction of the open quantity of the corresponding order in APO to zero. The order is not longer displayed in the product view.
Post goods receipt	The order for the receipt is reduced and the stock is increased.	The order for the receipt is reduced and the stock is increased in APO synchronously.