Improve Runs for Products with Recurring Time Constraints Using SAP APO SNP

  • by Srinivas Gudipati, Director, SAP Solutions, Falcon Prime, Inc.
  • February 25, 2011
You can configure the SAP Advanced Planning & Optimization (SAP APO) Supply Network Planning (SNP) module to create a real-time shop floor plan based on production frequency. This approach is useful if a company has dedicated manufacturing lines and manufacturing weeks in a month for different product groups, and wants to generate the production plan by looking at factors such as time schedules and manufacturing resources. SAP APO SNP can generate a production plan that the shop floor can execute.
Key Concept
A planning receipt is a request created during the planning run for a plant to trigger the procurement or production of material of a certain quantity for a specific date. Using SAP Advanced Planning & Optimization Supply Network Planning, you can place planning receipt quantities into recurring time buckets, which is helpful when shops dedicate machine capacity to specific products during certain weeks.

Companies sometimes want to perform long-term capacity planning in a tight production schedule with different production lines allocated to product groups. This kind of situation occurs in the consumer products industry where companies manufacture products or product groups on dedicated production lines in specific time periods during a month or quarter.

Based on the sales volume, they manufacture the products frequently— for example once a month or quarterly — by accumulating the demand. One of my clients has a typical production schedule driven by product groups (based on their sales volume) on dedicated production lines in specific time periods. This client wanted to implement SAP Advanced Planning & Optimization (SAP APO) Supply Network Planning (SNP) and integrate its existing SAP ERP production planning into SAP APO.

The client wanted to create a production schedule based on the actual shop floor schedules, review the long-term capacity plan with SAP NetWeaver BW metrics, fine tune its capacities, and, finally, generate a feasible production schedule for manufacturing plants. I assume that the reader has some prior knowledge about SAP APO master data, SAP ERP-APO core interface (CIF), the setup for new SNP planning areas, SNP planning books, and macro elements.

Srinivas Gudipati

Srinivas Gudipati is director of SAP solutions at Falcon Prime Inc., at which he leads SAP SCM solutions (SAP ERP Logistics, SAP APO, and RFID).  He implements large scale corporate supply chain projects and deploys the end-to-end supply chain process solutions. Falcon Prime Inc. specializes in SAP products and solutions across the enterprise domain, and provides business and technology consulting services, software implementation, and development. Srinivas has 12 years of SAP experience and more than eight years of experience implementing SAP supply chain solutions.

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