SAP Production Planning & detailed Scheduling with SAP PP/DS

Integrated Production Optimization & Detailed Scheduling in S/4HANA

Challenges of Traditional ERP Systems in Production Planning

Traditional SAP ERP systems utilize the classic MRP approach with separate capacity planning. This often requires multiple iterations to achieve a production plan that is balanced in terms of capacity, a process that is especially cumbersome in multi-level manufacturing and nearly impossible to manage manually in today's complex environments. The significant costs, integration challenges, and demands on IT support have frequently prevented mid-sized companies from implementing an external Advanced Planning System. Consequently, the limited capabilities for finite scheduling within the ERP system result in production plans that are often impractical in the manufacturing setting.

To bridge these gaps, companies may resort to using tools like Excel, which ultimately compromises data transparency due to a lack of integration with the ERP.

With SAP's embedded PP/DS (Production Planning and Detailed Scheduling), planners gain access to a robust set of tools that offer numerous benefits: cross-plant and cross-dispatch stage coordination results in smoothed and feasible production plans, reduced throughput times across the entire production chain, and setup-optimized scheduling that maximizes capacity utilization.

All manufacturing constraints—such as machine, labor, and auxiliary capacity, as well as availability—are simultaneously considered. A key innovation in S/4HANA is the full technical integration of ePP/DS, facilitating a seamless transition from detailed planning to production execution. In S/4HANA installations, PP/DS is already technically included and can be activated through simple customizing. Master data like material masters and work centers can be selectively enabled for detailed planning and optimization by setting specific indicators, allowing for a gradual deployment of PP/DS.

PP/DS (Production Planning/Detailed Scheduling) is the standard solution for production planning in S/4HANA, serving as an ideal complement to Integrated Business Planning in the cloud.

Frank Peks, Senior Managing Consultant CONSILIO GmbH Contact expert

SAP PP/DS functionalities

  • Scheduling of requirements at precise times
    • Just-in-time processes
    • exact transport planning
  • Fixed and dynamic pegging across multiple demand levels
  • Integrated, multi-level planning of quantities and capacities such as:
    • Machines
    • Staff
    • Tools etc.
  • Reduction of inventories across all disposition levels
  • Specially defined (both standard and custom) ages help to detect and actively counteract exceptions. For example, shortage/surplus or capacity bottlenecks
  • Observation of all capacity bottlenecks and corresponding rescheduling or adjustments to the production program
  • Attention to material availability across all stages
  • If there is no availability, the orders are postponed accordingly
  • Material consumption is determined according to all requirements
    • Requirements from the individual customer segment such as KES or higher production orders
    • Preplanner or higher production orders
  • Based on customer-specific requirements, demand maps can be created with the help of proprietary heuristics.
  • Orders can be feasibly scheduled taking into account the capacity situation and depending on tool availability as well as other restrictions
  • Presentation of capacity utilization by means of comprehensive analyses and Fiori apps
  • Capacity bottlenecks are identified and can be actively counteracted
  • Infinite and finite resource planning options
  • Use of powerful heuristics and optimization algorithms
  • Schedule optimization based on different functions:
    • Minimize delay costs
    • Reduce setup costs
    • Reduce mode costs
  • Take advantage of greatly simplified master and transaction data management
  • Prioritization and rescheduling of orders as well as consideration and reduction of buffers in orders
  • Avoidance of rescheduling or new planning in the event of minor deviations in deadlines and quantities
  • Machine and plant-dependent setup time optimization as well as scheduling of orders on alternative plants and machines
  • Early notification of dispatchers in the event of exceptional situations such as deadline violations and capacity overloads
  • Multi-level order relationships (pegging):
    • Establishing relationships between demand and procurement elements through pegging
    • Relationships can be considered even if requirements shift across all BOM levels and components
  • Increase in productivity and adherence to deadlines and thus also your competitiveness
  • Solutions implemented in PP/DS on ERP can be transferred to SAP S/4HANA in the event of a future changeover
  • Unlock your opportunities and synergies for value creation, information flow and collaboration with all participants in the supply chain with us
  • Design and implementation of detailed planning and optimization solutions
  • Identify current solutions and trends for dealing with increasing complexity
  • Creation of agile and interlocked business processes
  • Creation of feasible, optimized production plans taking into account capacity and material availability as well as technical restrictions and business management criteria
  • Optimization of plant utilization, set-up times and shortening of throughput times

Advantages of Production Planning

With the aid of SAP embedded PP/DS, typical production planning objectives can be more easily achieved:

  • Enhanced Visibility and Schedule Adherence: Provides accurate insights into capacity utilization and adherence to deadlines.
  • High Delivery Reliability: Ensures high compliance with customer demands.
  • Reduced Setup Times and Costs: Achieves cost-efficiency through optimized setup processes.
  • Optimal Utilization of Machines and Facilities: Ensures all resources are fully leveraged.
  • Accounting for Additional Constraints: Includes other factors like manufacturing aids and staff qualifications.
  • Flexible Exception Handling: Capably manages deviations, such as delays in raw material arrivals or equipment failures.

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