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Create new Plant and activate as APO Location Master
Question: when new Plant is created in S/4HANA, what is the method to activate to create APO Location Master for the new Plant. AND next create new Material in the new Plant and activate Advanced Planning for the APO Product in the new APO Location.
CLICK the link to the Blog Post for the demonstration to address the Question.
https://froggysap.blogspot.com/2024/05/crew-new-plant-blog-post_14.html
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MRP Area CIF to APO Location Master
Question: How to activate MRP Area for Advanced Planning in S/4HANA system.
CLICK the link to the Blog Post for the demonstration to address the Question.
https://froggysap.blogspot.com/2024/05/blog-post_16.html
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Classic Material Master Strategy 20 Mapping to APO Product Strategy
Question: For Advanced Planning in S/4HANA, there is a mapping for every Classic MRP Strategy to the Advanced Planning Strategy:
eg:
Classic MRP Strategy "40" is mapped to APO Planning Strategy "20"
Classic MRP Strategy "11" is mapped to APO Planning Strategy "10"
Classic MRP Strategy "10" is mapped to APO Planning Strategy "10"
Classic MRP Strategy "20" is mapped to APO Planning Strategy "-" (Blank)
The APO Planning Strategy "could" be important for the APO system when it was a separate system that connects to the ECC system. BUT since the S/4 HANA systems comes with the Embedded PPDS (both now in ONE system), the Question is that; is the APO Planning Strategy or the MRP Strategy's Requirement type that decides the behavioral aspects of the PIR and Sales Order.
Suggestion:
When first activating a Material for Advanced Planning (in S/4) with Embedded PPDS, the system will auto set a Mapped "Proposed Strategy" to the "Advanced Planning" view in the Material Master. For example: if MRP 3 Strategy Group is "40", the the Advanced Planning will the Strategy "20". AND the Consumption/Reduction and PIR-Sales Order Requirement Type behaviors and synchronized between MD04 and the APO Product View.
However, if subsequently the user change the same Material MRP3 view Strategy to "20", the Advanced Planning view's Strategy is still at "20" (According to the internal mapping requirement, MRP Strategy Group "20" should be mapped to APO Strategy "-" (Blank). AND even if the user do not make any amendments to the APO Strategy from "20" to "Blank", the MTO characteristics from the Classic PIR and Sales Order will still be CIFted internally from MD04 to the APO Product View.
It does seem that the Strategy Group in the MRP 3 view prevails in both cases at least for the Classic Strategy Group "40" and "20" and looks that the APO data view's Strategy has no impact on the expected behavior settings for the Stocks, PIR, and Sales Order for the 2 cases.
Yes, there is the following Parameters setting for the APO Strategy as below:
If the Material Master APO data view's Strategy is "not used", then the question is what is the purpose of the APO Strategy depicted above. NOW, previously when APO system is EXTERNAL and only connected to the Backend ECC via CIF; the APO system unlikely can access the ECC MRP3 strategy for treating the Sales Order and PIR in the EXTERNAL APO system and as such this configuration above is important to the APO system.
BUT since, the PPDS is now EMBEDDED in the S/4 and the MRP3 Strategy view is accessible directly, (at least for Classic Strategy 40 and 20), the MRP3 Strategy sets the precedence behavioral considerations for the Stocks, PIR, and Sales Order for MD04 and synch this behavioral result to the APO Product view; HENCE, the Material Master "Advanced Planning" view Strategy "COULD be REDUNDANT"!
Caution, further testing should be done to verify the above and for other Strategies Mapping as well. Make sure, to verify this in different S/4HANA version as SAP development may be making changes in the future to update or enhance the capability and purpose of the Advanced Planning view's Strategy.
Hope to find time and future effort to further test the use of the APO Strategy for Embedded PPDS Advanced Planning in the near future and update findings to the Blog.
See Blog Posts:
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S/4 Heuristics Routines menu path
Question: Where to find the ABAP Source Code for the PPDS Heuristics in S/4HANA
SAP official reference for PPDS Heuristics:
see link:
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Reorder Point and Safety Stocks Calculation (Formulae)
Questions: SAP ROP and Safety Stock Calculation method
Recommendations:
Historical consumption data can be entered via Goods Issue from PGI but easier to just enter in the Material Master "Additional data" Consumption data or access via the Forecasting data view to enter the Consumption data.
In order to be familiar with the SAP ROP and Safety Stock Calculation, practice via data simulations.
See Blog Posts:
(a comparative study if Auto ROP and Auto Safety Stock Calculation in ECC and S/4 are the same)
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pMRP
Questions: In the R/3 or ECC system, MRP Controllers (Production Planners) were using LTP (Long Term Planning) to check the Capacity Requirements in a Simulated Scenario for "Non-Active" PIRs. The Classic LTP tool is still available in S/4HANA system but perhaps may no longer receive any enhancement from SAP in the future.
Predictive Material and resource planning (pMRP) was introduced as a new functionality to "replace the Aged LTP" in S/4 HANA 1909 (2019). The pMRP can only be executed as a FIORI App, it helps Production Planners to identify Capacity and/or Material Issues and solve them early in the Planning Process. The objective of the pMRP FIORI App is to identify potential capacity issues and to suggest possible leveling solutions as early as possible based on a simplified requirements plan using a simplified material requirements algorithm (like that in Finite Capacity BUT simpler!) AND without having to activate the Material for "Advanced Planning"!
There are 5 FIORI Apps to-date for pMRP functionality:
App ID F3934 - Process pMRP Simulations (
click here APP in FIORI Library) 1909
References:
For an overview the a demo of the pMRP Fiori App
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DDMRP
Initially introduced in 2010 by Carol Ptak and Chad Smith (the creators of the DDMRP methodology), soon the also became the founders for the Demand Driven Institute as a tool that will promote and protect flow through the entire supply network. BOTH are previously veterans on MRP solutioning with the APICS society.
DDMRP is short for Demand Driven Material Requirements Planning was developed by Carol Ptak and Chad Smith as an alternative to the short comings of the Classic MRP mechanics. Joseph Orlicky (an Engineer at IBM) often credited as the "Father of MRP" constructed the Principles of MRP in the 1960s. Joe Orlicky's MRPI evolved into Oliver Wight's MRPII in the 1980s where later in the 1990s see the blossoming of many Big and Small MRP solutions in America.
MRP is a "Push" system. It is based on Forecasting information (Planned Independent Requirement), to anticipate future demand and uses the MRP mechanics to calculate the Production and Purchasing Plans. Planners "pushed" the to achieve these Plans from the Forecast and "HOPE" that Actual Sales will come true based on the Forecast. However, that is always NEVER the case as there will be usually either over forecast or under forecast resulting in remnant stocks or fire fighting. In Supply Chain, the "Push" method of MRP is said to be the "Bull-whipped Effects".
Instead of using Forecasting information to plan for supply, DDMRP uses the Demand (Actual Sales Order) to come up with Supply Plans; like a PULL system (typically coined for JIT systems). DDMRP proposes to achieve this via decoupling points that help supply chain professionals absorb variability, reduce lead times.
Nice casual reading on DDMRP (as a start):
OR link to introduction to the History and Mechanics of DDMRP in:
Useful References on DDMRP I enjoyed reading:
Useful Videos on DDMRP I enjoyed watching:
DDMRP Certification:
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