Jawad Akhtar is an SAP logistics and supply chain management expert with a focus on business sales and delivery. He earned his chemical engineering degree from Missouri University of Science and Technology in the United States. He has 20 years of professional experience, 14 of which have been spent working with SAP systems. He has experience working on several large-scale, end-to-end SAP project implementation lifecycles, including rollouts. He works with SAP clients to help them identify root causes of business issues and address those with the appropriate SAP products and change management strategies. He now focuses on next-generation SAP products such as SAP S/4HANA, SAP IBP, SAP Ariba, and SAP Hybris.

Akhtar is also a technical advisor to SAPexperts, an ASUG speaker, and a contributor to SearchSAP, where his "Ask the Expert" column shares real-life lessons and best practices gleaned from SAP implementations, ways to avoid common project pitfalls, and features of various SAP products that solve key business issues.

((Second edition, updated and revised))

... Acknowledgments ... 29

... Preface ... 31

... Goals of This Book ... 32

... Target Audience ... 32

... Structure and Content ... 33

PART I ... Core Production Planning Concepts ... 37

1 ... Introduction to Production Planning with SAP S/4HANA ... 39

1.1 ... Production Planning and Control ... 40

1.2 ... Comparison Table of Production Types ... 52

1.3 ... Production Planning Features in SAP ERP and SAP S/4HANA: A Comparison ... 56

1.4 ... SAP Integrated Business Planning for Supply Chain ... 58

1.5 ... Summary ... 60

2 ... Organizational Structure in SAP ... 61

2.1 ... Breaking Down the Structure into Units ... 61

2.2 ... SAP Calendar ... 69

2.3 ... Summary ... 73

PART II ... Production Planning Configuration ... 75

3 ... Discrete Manufacturing Configuration ... 77

3.1 ... Material Master ... 78

3.2 ... Bill of Materials ... 79

3.3 ... Work Center ... 84

3.4 ... Routing ... 94

3.5 ... Production Order Configuration ... 96

3.6 ... Order Type-Dependent Plant Parameters ... 100

3.7 ... Production Scheduling Profile ... 104

3.8 ... Default Values for the Generation of Operations ... 107

3.9 ... Availability Check ... 108

3.10 ... Scheduling ... 113

3.11 ... Reduction Strategy ... 117

3.12 ... Confirmation ... 118

3.13 ... Reason for Variances ... 126

3.14 ... Trigger Points ... 127

3.15 ... Define Print Control ... 127

3.16 ... Background Jobs ... 128

3.17 ... Summary ... 129

4 ... Process Manufacturing Configuration ... 131

4.1 ... Master Data in Process Industries ... 132

4.2 ... Order Type-Dependent Parameters ... 135

4.3 ... Production Scheduling Profile ... 138

4.4 ... Process Management ... 140

4.5 ... Process Messages ... 144

4.6 ... Process Instruction Category ... 149

4.7 ... Control Recipe/Process Instruction Sheets ... 164

4.8 ... Background Jobs ... 168

4.9 ... Process Manufacturing Cockpit ... 169

4.10 ... Summary ... 172

5 ... Repetitive Manufacturing Configuration ... 173

5.1 ... Repetitive Manufacturing Profile ... 174

5.2 ... Scheduling Planned Orders ... 185

5.3 ... Display ... 186

5.4 ... Material Staging ... 188

5.5 ... Global Settings for Confirmation and the Logistics Information System ... 189

5.6 ... Operational Methods Sheet ... 190

5.7 ... Summary ... 191

PART III ... Production Planning Workflows ... 193

6 ... Production Planning for Discrete Manufacturing ... 195

6.1 ... Process Overview ... 196

6.2 ... Master Data ... 197

6.3 ... Production Order Management ... 232

6.4 ... Release Production Order ... 250

6.5 ... Printing ... 252

6.6 ... Material Withdrawal ... 255

6.7 ... Confirmation ... 261

6.8 ... Goods Receipt ... 267

6.9 ... Postprocessing ... 270

6.10 ... Settlement and Completion ... 272

6.11 ... Additional Functions and Information Systems ... 274

6.12 ... Summary ... 278

7 ... Production Planning for Process Manufacturing ... 279

7.1 ... Process Manufacturing Overview ... 280

7.2 ... Master Data in Process Manufacturing ... 281

7.3 ... Characteristics ... 290

7.4 ... Process Management ... 294

7.5 ... Process Order Execution ... 307

7.6 ... Process Management in Action ... 308

7.7 ... Execution Steps ... 318

7.8 ... Process Messages Evaluation ... 329

7.9 ... Process Manufacturing Cockpit ... 330

7.10 ... Resources Network ... 331

7.11 ... Summary ... 336

8 ... Production Planning for Repetitive Manufacturing ... 337

8.1 ... Overview ... 338

8.2 ... Master Data ... 341

8.3 ... Material Requirements Planning in Repetitive Manufacturing ... 359

8.4 ... Planning Table ... 362

8.5 ... Material Staging ... 372

8.6 ... Production List ... 375

8.7 ... Confirmation ... 377

8.8 ... Reversals and Scrap ... 386

8.9 ... Costing Activities (Cost Object Controlling) ... 391

8.10 ... Heijunka ... 392

8.11 ... Reporting ... 393

8.12 ... Summary ... 395

PART IV ... Production Planning Tools ... 397

9 ... Kanban ... 399

9.1 ... Kanban Overview ... 400

9.2 ... Push-Pull Principle ... 402

9.3 ... Kanban Replenishment Strategies ... 404

9.4 ... Configuring Kanban ... 406

9.5 ... Setting Up Kanban Master Data ... 419

9.6 ... Replenishment with Kanban ... 423

9.7 ... Evaluating and Reporting Kanban ... 450

9.8 ... Summary ... 455

10 ... Batch Management ... 457

10.1 ... Batch Management Overview ... 457

10.2 ... Batch Level and Batch Status Management ... 459

10.3 ... Master Data in Batch Management ... 463

10.4 ... Business Processes of Batch Management ... 467

10.5 ... Batch Determination ... 474

10.6 ... Recurring Inspection and Expiration Dates ... 486

10.7 ... Batch Derivation ... 493

10.8 ... Batch Traceability of Work in Process Batches ... 503

10.9 ... Batch Information Cockpit ... 512

10.10 ... Electronic Batch Record ... 515

10.11 ... Summary ... 517

11 ... Sales and Operations Planning ... 519

11.1 ... Standard Sales and Operations Planning ... 520

11.2 ... Flexible Planning ... 538

11.3 ... Version Management ... 559

11.4 ... Forecasting ... 561

11.5 ... Rough-Cut Planning Profile ... 574

11.6 ... Events ... 578

11.7 ... Mass Processing in Sales and Operations Planning ... 584

11.8 ... Standard Analysis in Flexible Planning ... 586

11.9 ... Summary ... 589

12 ... Demand Management ... 591

12.1 ... Elements of Demand Management ... 592

12.2 ... Strategies for Make-to-Stock Production ... 598

12.3 ... Strategies for Make-to-Order Production ... 609

12.4 ... Strategies for Assemble-to-Order ... 615

12.5 ... Strategies for Planning Components ... 620

12.6 ... Production with Variant Configuration ... 623

12.7 ... Create a Custom Requirement Class ... 626

12.8 ... Business Processes in Demand Management ... 630

12.9 ... Summary ... 642

13 ... Foundations of Material Requirements Planning ... 643

13.1 ... Process Overview ... 644

13.2 ... Deterministic Replenishment Procedures ... 651

13.3 ... Stochastic Replenishment Procedures ... 663

13.4 ... Configuring Material Requirements Planning Types ... 668

13.5 ... Lot Sizing Procedures ... 671

13.6 ... Rounding ... 679

13.7 ... Scrap ... 681

13.8 ... Safety Stock ... 684

13.9 ... Scheduling ... 690

13.10 ... Procurement Proposals ... 695

13.11 ... Configuration Settings for Material Requirements Planning ... 702

13.12 ... Summary ... 705

14 ... Running Material Requirements Planning ... 707

14.1 ... MRP Live ... 709

14.2 ... Stock/Requirements List ... 713

14.3 ... Planning Calendar ... 728

14.4 ... Planning Areas ... 730

14.5 ... Classic Material Requirements Planning ... 735

14.6 ... Types of Planning Runs ... 737

14.7 ... Summary ... 739

15 ... Demand-Driven Replenishment ... 741

15.1 ... Limitations of Current Materials Planning and Replenishment Tools ... 742

15.2 ... Material and Information Flows ... 744

15.3 ... DDMRP Basics and Components ... 746

15.4 ... DDMRP Setup ... 757

15.5 ... Running Demand-Driven Replenishment ... 768

15.6 ... Summary ... 805

16 ... Long-Term Planning ... 807

16.1 ... Long-Term Planning Master Data and Planning Data ... 808

16.2 ... Long-Term Planning: Business Process ... 815

16.3 ... Additional Features in Long-Term Planning ... 820

16.4 ... Evaluate Information Systems ... 826

16.5 ... Summary ... 832

17 ... Predictive Material and Resource Planning ... 833

17.1 ... pMRP Basics ... 834

17.2 ... pMRP Setup ... 835

17.3 ... Managing pMRP ... 839

17.4 ... Releasing pMRP Results to Operative MRP ... 847

17.5 ... Summary ... 848

18 ... Capacity Requirements Planning ... 851

18.1 ... Process Overview ... 852

18.2 ... Capacity Requirements and Capacity Evaluation ... 854

18.3 ... Finite Scheduling ... 869

18.4 ... Dispatching ... 870

18.5 ... Capacity Planning Table ... 885

18.6 ... Summary ... 891

19 ... Production Planning and Detailed Scheduling ... 893

19.1 ... Configuration ... 895

19.2 ... Master Data in PP-DS ... 900

19.3 ... Business Processes ... 917

19.4 ... Heuristics ... 924

19.5 ... Production Planning Run ... 926

19.6 ... Reporting and Monitoring Apps ... 939

19.7 ... Alert Monitor ... 945

19.8 ... Plan Monitor ... 946

19.9 ... Summary ... 951

20 ... Production Engineering and Operations ... 953

20.1 ... Key Terminologies ... 955

20.2 ... Configuration Settings and Production Engineering and Operations Setup ... 956

20.3 ... Production Engineering Master Data Setup ... 964

20.4 ... Planning in Production Engineering ... 979

20.5 ... Production Operations ... 983

20.6 ... Reporting ... 997

20.7 ... Summary ... 999

PART V ... Monitoring and Evaluating Production Planning ... 1001

21 ... Early Warning System ......