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 Creation of PPMs for Use in Demand Planning

Purpose

PPMs are used in demand planning solely as bills of material (BOM). Other information such as how and where a product is to be produced are of no importance. DP-PPMs only contain those materials that are relevant to demand planning. In general, you do not plan all the components of a product in demand planning, but only those components that:

  • Have limited supply

  • Are particularly expensive

  • Have long lead times

  • Are otherwise critical in the supply chain, for instance cause transport problems

Similarly the BOM hierarchy is not as important as in other applications.

As a result you can create special PPMs for use in demand planing. The same product can have several PPMs for use in different applications.

Prequisites

Units

A bill of material can contain several different units of measure. For example in the BOM for an elevator you require

  • 20 meters of cable (unit m)

  • 5 square meters of glass for the walls (unit m2)

  • several prefabricated units such as switching units and lights (unit PC)

The unit for the elevator itself is PC. In order to be able to convert one unit to another, you must enter conversion factors in the product master record. The system uses these factors to convert all the units in the BOM to that of the product.

Note Note

If you are working with bills of material that contain several units, SAP recommend that you set the UOM indicator for the respective key figures in planning area maintenance. You can find this indicator on the detail screen of the Key figs . tab page.

End of the note.

Process Flow

The hierarchy of a BOM is not relevant for demand planning. A DP-BOM should only contain those components that are to be planned (see above). SAP recommends that you only use single-level BOMs in demand planning.

For general information on PPMs refer to Production Process Model .

  1. You call up PPM maintenance by choosing Start of the navigation path Master Data Next navigation step Production Process Model End of the navigation path .

  2. On the initial screen you enter a name for the plan and set the Usage field to D for demand planning.

  3. You create a dummy operation and activity for the plan.

  4. By double-clicking on the activity you arrive at the Component screen. Here you enter the name of the product and set the I/O indicator to O (Output). You also enter the number of items, which is usually 1 for the product, and validity dates if appropriate. You continue by entering the components, for which you set the I/O indicator to I (Input). You enter the quantity of a component that is required to manufacture the number of items of the product as previously specified.

  5. You assign the PPM to the output product. To do so, choose .

  6. You save and activate your PPM.