Component documentation Capacity Leveling in PP-SOP and LO-LIS-PLN 

Introduction to Sales and Operations Planning (SOP)

Sales & Operations Planning (SOP) is a universal planning and forecasting tool that you can use to plan any area of logistics (for example, sales and distribution, production, purchasing).

Capacity leveling is an important tool for creating realistic plans. It helps you ensure that your targets are within capacity constraints. The following topic describes how to use capacity leveling from the point of view of SOP.

SOP supports planning at any level of your organizational hierarchy from high-level planning across national boundaries to the detailed planning of finished products.

Planning is based on information structures. An information strucure contains the following types of information:

  • A time unit: this gives the structure a time reference.
  • Characteristics: information (for example, sales organization, plant, or material) which represents the different organizational units of your company.
  • Key figures: information which says something about the way your company has performed or operated in the past or how you expect it to perform or operate in the future. Examples of key figures are actual invoiced sales, planned incoming order quantities, and planned production quantities.

You can plan several types of master data:

  • Planning hierarchies
  • Product groups
  • Materials

You enter planning data in a planning table. You have the option of creating your own planning tables. A user-defined planning table is known as a "planning type". In a planning type, you can define macros as in a spreadsheet; for example, you can work out the difference between two lines and display the result in a third line.

Aggregation and disaggregation functions guarantee data consistency throughout complex planning hierarchies. These functions are supported by Application Link Enabling (ALE).

SOP is composed of two elements: The standard Sales and Operations Planning (also called "standard SOP") and flexible planning. Standard SOP is predefined for the standard package, flexible planning offers several options for user-specific settings.

See also:

LO Logistics Information System

PP Sales & Operations Planning

Purpose of Capacity Leveling in SOP

Effective resource planning is vital to the realization of operational targets. With SOP’s resource leveling function, you can assess the viability of your targets in terms of the resources required to meet them. This gives you the knowledge you need to fine-tune your targets and optimize the use of resources.

The function of resource leveling in SOP allows you to take account of the resources load when creating your plans. Thus you can directly check how changes to your plans affect the resources. You can adjust your plans to make optimum use of available resources.

Since sales and operations planning is generally carried out at an early stage in the planning cycle and on an aggregate level, the resource load for work center groups or product families - rather than individual work centers or materials - is of particular interest. SOP typically focuses on a superior work center in a hierarchy (for example, the root of the hierarchy), a bottleneck work center, or a product grouping.

Features in Standard SOP

In standard SOP you perform resource leveling for the production quantities of a product group or material. The following resources are possible: work center capacities, materials, production resources/tools and costs. These resources are stored in a rough-cut planning profile. Work center capacities may also be read from a routing or rate routing.

Resource leveling may be carried out for the active version or any inactive version in a single-level planning screen.

You view the capacity load for work centers in the standard planning table. From here, you can branch into a standard analysis of the resource loads for materials and production resources/tools or costs.

You can check the capacity load for the following scheduling levels:

  • Detailed planning
  • Rate-based planning
  • Rough-cut planning

The system generates resource requirements for the quantities that you have entered in the Production line of the standard planning table.

Features in Flexible Planning

In Flexible Planning, you perform resource leveling in the same way. Here, however, a resource may be tied to any key figure (not just production) and characteristic values combination (not just to a product group or material).

The system generates resource requirements for the planned key figure. If resource leveling is based on a rough-cut planning profile, this is the key figure defined here. If resource leveling is based on a routing or rate routing, this is the key figure defined in the information structure parameters.

Note

If resource leveling is based on a rough-cut planning profile, it must contain the same characteristic values combination as the one you are planning in the planning table. This means, for example, that you cannot view the resource requirements of just one product if you created the rough-cut planning profile for the whole product family.

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