SALES AND OPERATIONS
PLANNING
Course Objectives
Obtain an overview of the process
Understand Concepts of Sales and Operations Planning
(SOP)
Define how the SOP is integrated with other SAP modules
Understand the SOP processes
Perform SOP transactions
Understand the process of Flexible Planning
Table of content
Production Planning Overview
Sales and Operations Planning (SOP)
SOP Process
Flexible Planning
What is Production Planning?
Production Planning is the process of aligning forecasts
with manufacturing capability to create production and
procurement schedules for finished products and
component materials.
It also tracks and records the detail of the manufacturing
process, for example, the planned and actual costs and
material flows
It is fully integrated with the other SAP modules: SD,
MM, LE, CO
PP Processes and Roles
2
Long Term
Planning
3
Demand
Management
Sales & Ops
Planning
5
MRP
Master Data
Maintenance
6
Capacity
Requirements
Planning
Production Planning Master Data
provides the infrastructure for
Production Planning transactions
Production
Execution
PP flow & Integration
FI /CO
MM
Long Term
Capacity
Planning
Sales & Ops
Planning
Capacity Req.
Planning
CO
(Cost
Control)
Demand
Management
MRP
MM LE
(Stock
Control)
Production
Execution
QM
(Quality
Control)
What is Sales & Operations Planning?
Sales & Operations Planning (SOP) is the process of
aligning forecasts of customer demand with manufacturing
capability
Q
U
A
N
T
I
T
Y
May
June
July
TIME
Stock
Master Plan
Sales Plan
Capacity estimate
What is the SOP Process (1) ?
SOP is used for the annual planning processes of budget
preparation and the rolling monthly execution plans
There are three principal sources of data:
; Annual plan of capacity including maintenance shutdown
; Sales forecast by region, country and grade
; Profitability Analysis
The plans are prepared in calendar months. Capacity is
checked using Rough-Cut Capacity Planning and adjusted
where necessary
What is the SOP Process (2) ?
The budget and the rolling plans both use a hierarchical
representation of products and product groups:
; Adjustments to demand and production are made at the lowest level (i.e.
packed products)
; Planned production quantities are aggregated up the hierarchy to allow the
loading to be checked for RoughCut Capacity Planning at product group
levels
The rolling plan moves forward each month and the
Planner will check and confirm the detail for the next 3
months.
Who is Responsible for SOP?
SOP & HQ
Planners
Sales & Ops
Planning
Plnt Planner (SOP)
; Responsible for creating and controlling Sales & Operation
Planning, taking the sales forecast via profitability analyses,
checking the loading using rough capacity planning and adjusting
the S&OP as necessary
How does SOP data apply to the Process?
SOP data creation
Create Sales Plan
Create Production
Plan
Aggregate Plan and
Check Capacity
Transfer Planning Values
to Demand Management
SOP Planning Table
Sales Information System
Information
Information
Version
Version
CO / PA Module
CO/PA
CO/PAfield
fieldname
name
Version
Version
Measure
Measure
- -Sales
Salesquantity
quantity
From
From
To
To
Forecast
From
From
To
To
- -Returns
Returns
Measure
Measure
- -Sales
Salesquantity
quantity
SOP Planning Table
Un
Sales
PC
Value
Sales
OP
From
05/2003
1000
06/2003
07/2003
1200
To
%+
01/1999
12/1999
01/1999
12/1999
Production
Target stock lvl
10
Tgt days' supply
Distribution
Direct - manual
900
S&OP Version Management Guideline
Initial SOP
Copy to Last Years Plan
Annually
Version 900
Source Version
800
Copy to Current Annual Plan
Copy to Rolling Monthly Plans
Target Version
700
Annually
Annually
Version 800
Version 801
Monthly
Version 802
Version 803
Copy to Active Version after Review
Version A00
Monthly
Aggregation and Disaggregation
Disaggregate
Production
Plan...
Product Group 1
60%
40%
Product Group A
50%
Material
MAT1
or
Sales
Plan
30%
Material
MAT2
Product Group B
20%
Material
MAT3
75%
Material
MAT4
25%
Material
MAT5
Transfer to Demand Management
Product Group 1
60%
40%
Product Group A
50%
Material
MAT1
30%
Material
MAT2
Product Group B
20%
Material
MAT3
75%
Material
MAT4
DEMAND MANAGEMENT
25%
Material
MAT5
Frequently used transactions for SOP
Practice the following transactions
;
;
;
;
;
MC82 Change SOP Plan
MC76 Disaggregate SOP Plan
MC8G Mass Process Aggregate Plan
MC78 Copy Planning Version
MC8G Mass Transfer to Demand Management
What is Flexible Planning?
Flexible Planning provides detailed way of planning based
on our own characteristics.
Examples of planning on our own characteristics:
; Production line
; Product Size
; Market
Basis for Flexible Planning?
Information structure
Planning Hierarchy
Planning Type
Planning through Planning Table
Information Structure
What is information structure?
; Information structure is the one which hold entire information of the
required characteristics and key figure. E.g. S755
Example of characteristics & Key figure
; Production line -- characteristic
; Product Size -- characteristic
; Market -- characteristic
; Sales key figure
Planning Hierarchy
What is Planning Hierarchy?
; Planning hierarchy is a combination of characteristic values based
on the characteristics of one information structure.
; Planning hierarchies provide a frame work for planning
Example of Planning hierarchy
; For information structure S755, sales quantity is planned for below
characteristics
; Production line -- characteristic
; Product Size -- characteristic
; Market -- characteristic
Planning Type
What is Planning Type?
; Planning type is a customized view on the planning table.
; Planning type defines the content and the layout of the lines in the
planning table.
; Planning data is saved on the information structure and planning
type acts as a mere template on the information structure
Planning Table
What is Planning Table?
; Planning table is the place where the planning is done.
; Planning table hold the information with different version for each
plan.
Characteristics
Value
Production line
Bar mill
Product Size
16mm
Market
Export
Material
22001972
Sales
Jan-1000, Feb-2000etc..
Transactions
Practice the following transactions
;
;
;
;
MC63 Display Planning Hierarchy
MC93 Create Plan
MC8V Copy Planning Version
MC8G Transfer to Demand Management
