Production Planning Demand Management AS-IS TO-BE

AS-IS Business Process at XYZPLT
  • Schedule from the customer is on the basis of planning for the Production.
  • At times they also receive Customer Order instead of the Schedule; hence they are using that Customer Order as a reference for production planning.
  • Scheduling is done on the basis of customer order which can be monthly / Quarterly.
  • Schedule is then forwarded to the Purchase Dept. who is triggering the Procurement Cycle for Raw material / Semi-finish components / Bought-Out-Parts (BOP) etc. And meanwhile the BOP are received the PPC Department is prepares the monthly production schedule for each item at FG level for all these requirements. This gives a day wise item wise schedule for delivery of the FG.
  • The detailed Monthly production schedule is then circulated to all the concerned departments in the plant for their necessary action.
  • When PPC makes the monthly production plan they manually ensure that the plan is as per the capacity of the plant.
  • Purchase Dept. also schedules the delivery with the Vendor based on this schedule received from Customer.
  • Raw material and other required components for the production is received at production to initiate the production activity.
TO-BE / Business SAP-Process at XYZPLT
  • Production schedules will be created by the system based on the base of PIR input in the demand management.
  • Requirements would be entered in Demand Management. The demand management is the process of entering the requirements of a material that needs to be produced for future sales.
  • Customer orders received will be entered in the Sales Module and the data transfer to Production Planning module is done by the system.
  • The requirements will be entered for a finished Product. The system considers the requirements entered in the demand management as the requirement quantities.
  • Based on the strategy selected for a material, the system considers other elements like Sales order, stock etc. before arriving at the net quantity that needs to be produced.
  • Parameters like Plant, Requirements type (which will be based on the strategy), For Net requirement planning (LSF), planning period etc. will be made as default for each user who creates the demand.
Reporting Considerations
  • MD63 – Display Independent Requirements
List of Business Process Procedures (BPP)
  • MD61 – Create Independent Requirements
  • MD62 – Change Independent Requirements
  • MD73 – Display Total Requirement      

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