SAP S/4HANA Production Planning Challenges

• Challenges in SAP ECC Production Planning include fast, accurate, and real-time Materials Requirements Planning (MRP).

• In Repetitive Manufacturing (REM), the cost object is a product cost collector.

• SAP S/4HANA enhances business process effectiveness by processing events in real-time and predicting events with advanced algorithms.

• Sales & Operations Planning (S&OP) allows for sales and production plan details to be the same or different.

• Routing is correct in Discrete Manufacturing.

• MRP Live does not support multi-level, make-to-order planning.

Benefits of Material Requirements Planning (MRP) with SAP S/4HANA

• Enables faster reaction to demand changes and reduces stock-out risks.

• Allows for faster re-planning for more frequent MRP runs.

• For externally procured materials, the system uses planned delivery lead time to calculate lead time.

• PP/DS is not a material master view.

• The system searches for MRP settings in the following sequence: Material Master -> MRP Group -> Plant Settings.

• Setting the net scrap indicator means that assembly scrap will be ignored.

• A work center cannot be used in a Bill of Materials (BOM).

SAP S/4 HANA

• SAP S/4 HANA is: -A next-generation business suite. -Built on SAP HANA in-memory platform. -Delivers simplifications and innovations for digital businesses.

• SAP Business Suite product is not a legal successor

• The SAP ECC business suite in SAP S/4 HANA, covering all business lines, is called SAP S/4 HANA Enterprise Management.

• A tab not found in work center creation is costing.

• Control key is not a mandatory field during work center creation.

• In S/4 HANA, the BOM Selection method field is unavailable in the material master.

• Master recipes and work centers master data can be used with process orders.

Bill of Materials (BOM)

• Different available Bill of Materials categories are: -Material BOM -Sales Order BOM -Equipment BOM

• The S&OP process flow is S&OP-PIR-MRP-Shop Floor Execution.

• Characteristics not associated with DM include comparatively wider specifications.

• A purchase requisition is not a requirement element.

• Sales & Operation Planning (SOP) is a planning tool for creating sales and production plans.

• In S/4 HANA, MRP at the plant level is unavailable, instead of planning on a storage location, MRP Area

• When material master contains both lot size-dependent and lot size-independent values, the system prefers Lot Size dependent quantity.

• Demand Driven Replenishment is the new MRP procedure introduced in S/4 HANA.

SAP S/4HANA Data Footprint Reduction

• Massively reduce data footprint by: -Removing redundant historical information. -Eliminating unnecessary data tables.

MRP Live

• Applicable to MRP Live: -Flexible planning scope definition. -The sequence of planning materials is calculated across plants.

• Relevant routing sequence: Header, Sequence, Operations, Work center.

• In the material master, in-house production time resides in the MRP 2 and Work Scheduling views.

• Transfer of S&OP to Demand Management results in the generation of PIRs.

Material Requirement Planning Live

• Material Requirement Planning Live -Transfer of S&OP to Demand Management results in the generation of Planned Orders -MRP lists in MRP live will display the plant wise material details is not true.

• Scheduling in S/4 HANA Manufacturing determines both production and procurement dates.

• Planning strategy refers to the way materials are planned and how requirements are passed on in Production and Procurement.

• Correct logic sequence in Planning Strategy settings: Material Master - Strategy Group - Main Strategy - Requirement Type.

• Under Group, one or more group counters can exist for the same Material & Plant combination in Routing.

• CAPP functionality is no longer supported in SAP S/4 HANA.

• A typical Manufacturing cycle includes Order Planning, Requirement Planning, Order Execution, Goods Movement, and Order Completion.

• DP is not included as part of the S/4 HANA Digital Core.

SAP S/4 HANA Field Length

• Material Number -The material number field length in material master has been extended from 18 to 40 characters

Business Requirement Guideline

• Business requirement guidelines while selecting a strategy: -Decide whether existing forecasts should be consumed by sales orders? -Determining where the planning location to be executed?

• Whether the components needs to be acquired prior to sales?

• The organizational unit using the manufacturing, planning, and execution process in SAP S/4 HANA is plant.

• The SAP Activate methodology for On-Premise solutions includes Preparation, Business Blueprint, Realization, Final Preparation, and Go Live-Support.

• Bill of Materials (BOM) can consist of both In-house production and External procured components.

Simplified Supply Chain in SAP S/4HANA

• Simplified supply chains enable: -Production Planning and Detailed Scheduling (PP/DS) as an integral manufacturing element. -Closer integration of available-to-promise (ATP) into execution processes

• S/4 HANA MRP does not support planning on the storage location level.

• SAP S/4 HANA Cloud upgrades scheduled on a quarterly basis.

• The new Fiori application simplifying planning and shortage tasks for MRP Controllers is the MRP Cockpit.

• There is default integration between S4 HANA & APO (PPDS) that result in real time integration. Master data like Material Master and Work Center are maintained centrally only in S/4 HANA.

• Product group in S&OP is a Collection of all the materials that needs to be Planned.

• In REM profile, the movement types 131, 261, 551, 122, 262 & 552 details are provided.

Technologies Enabling SAP S/4HANA

• Technological advances that enabled SAP S/4HANA include: -Big and affordable memory. -Multi-core processors enabling parallelism of tasks. -Ability to add server landscape and scale.

• One key difference between standard routing and rate routing is that Standard routing can provide alternative sequence.

• Flow of semi-finished goods from a customer to a supplier is not the correct flow in SCM material classification.

• In S/4 HANA MRP, planning run types include NETCH (Net change planning) and NEUPL (Regenerative planning).

Key Concepts of SAP S/4HANA

• Key concepts of SAP S/4HANA include: -Completely SAP Fiori-enabled user interaction. -Simplified data model. -Guided configuration.

• Not the correct parameter defined by Requirement Class is Contols the creation of Purchase Requisition based on consumption based planning

• Consumption-based planning is typically employed for the materials that consists of smooth consumption pattern.

• By default, the system uses backward Scheduling type.

• Calculation of the cost of an activity depends on the activity rate for the cost center, formula assigned and Parameters maintain in routing,

Transitioning to SAP S/4HANA

• Tasks required during transition to SAP S/4HANA are: -Adaptation of the new SAP Fiori user interface technology. -Adaption of custom code to comply with SAP S/4HANA.

SAP Fiori Categories

• The 3 categories of SAP Fiori are: -Transaction App. -Fact Sheets. -Analytical App.

• Order Confirmation parameters are defined at the plant and order type combination level

• In Planning without Final Assembly, Production is determined by sales order and there is no consumption of PIR is not correct.

MRP Live speed results from

• Faster performance due to: -Reading many tables in parallel using SAP HANA capabilities.

• All Manufacturing master data and Planning activities are performed at plant level.

S/4 HANA Innovations in MRP

• S/4 HANA innovations in MRP include: -No planned orders for external procurement, only purchase requisitions. -Storage location MRP is available (deactivatable). -MRP & MPS materials planned together in single run

• The Component Scrap field is available at the Material master and Bills of material

• Order-based production is not a characteristic of repetitive manufacturing.

• Assembly scrap is maintained in the material master.

• Automatic posting of goods movement - Goods Issue only is commonly known to be a Backflush.

Capacity Requirements

• The capacity requirements for a planned order is calculated based on: -Quantity in the Planned order. -Available capacity in the Work center. -Available Capacity at routing is evaluated based on the information stored at the work center

• Available capacities can be maintained in the work center in S/4 HANA system.

• The REM Profile is assigned in the material master for Repetitive Manufacturing process.

• It is not mandatory to assign REM profile in the material master is not applicable. The REM Profile is assigned is assigned in production version.

• Work Center Scrap is not an example of scrap.

• SAP S/4 HANA Cloud landscape consists of Quality & Production System

• In S/4 HANA EM, NAST is obsolete and BRF+ is introduced

• Simplified sequence of work centers, steady flow of production and Material Staging at lines is an example of Repetitive Manufacturing.

• Planned delivery time present in the MRP2 view of the material master is considered in external procurement proposal.

• Batch Production Manufacturing is is among the main production processes in SAP S4 HANA

• The operation quantity mentioned in the routing is based on Timings mentioned in routing as standard values

• Selection using a production version are BOM selection possibilities are available for opening a production order.

• Resource in PP-PI is same as Work Center in Discrete or REM Manufacturing

• Master Production Scheduling component under MRP is used to flag the materials which affect the company profits and also takes the critical resources.

• In the near future, S/4 HANA, Integrated Business Planning will replace S&OP.