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Sales & Operations Planning

August 13, 2015 | 282 Views |

Azhar Goollam Kader

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MAN Production Planning (PP)

Manufacturing | s&op

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Sales & Operations Planning (SOP)

The Sales & Operations Planning (SOP) application is based on information

structures. An information structure is a statistics file containing operational data.
This can be either planning data you anticipate will happen or actual data that
happened.

An information structure contains three kinds of information: characteristics, key

figures, and a time base.

Information structures are used for data evaluation, projection, and analysis in all
the logistics information systems.

Sales & Operations Planning (SOP) is a flexible forecasting and planning tool with
which sales, production, and other supply chain targets can be set on the basis of
historical, existing, and estimated future data. Rough-cut planning can also be
carried out to determine the amounts of the capacities and other resources required
to meet these targets.

SOP is particularly suitable for long- and medium-term planning.

Standard SOP

Standard SOP comes largely pre-configured with the system.

Flexible Planning

Flexible Planning offers multiple options for customized configuration: you can plan
on any organizational level, and also define the content and the layout of the
planning screens.

You can process your planning data from the standpoint of almost any
organizational unit (for example, sales organization, material group, production
plant, product group, material) and even from the standpoint of the entire
enterprise.

This InfoArea includes BI Content for Sales and Operations Planning (SOP). SOP
supports a process in which various enterprise areas can reconcile and
synchronize their plans, such as demand, sales, and procurement plans.

The aim of this process is to create a company-wide demand and procurement plan
that corresponds to the strategic aims of the company. The company can thereby
become more efficient.

SOP enables an analysis and a comparison of the various plans and a simple simula on
of alterna ve plans. SOP supports the following ac vi es, for example:

Mee ng management (including task management and ac on item

management)
Document management (such as Power Point slides, Excel lists, and so on)
Analy cs
Simula on

Procedure of Standard SOP:

1. 1. Create Plan in inactive version
2. 2. Disaggregate product group plan & Check capacity
3. 3. Version Management
4. 4. Transfer Product group to planning

Procedure of Flexible Planning:

1. 1. Create Plan in inactive version
2. 2. Convert Plan in to Active Version
3. 3. Transfer to Demand management

Master Data in SOP:

1. 1. Information Structure
2. 2. Planning Type
3. 3. Planning Hierarchy
4. 4. Product Group
 5. 5. Resource
6. 6. Rough cut planning profile

SOP steps have 3 classifications

1. 1. STANDARD SOP for Material
2. 2. STANDARD SOP for Product Group
3. 3. Flexible Planning

STANDARD SOP for Material:-

This will take place in Material and Plant level, so the characteristics will be Material
and Plant.
The key figures are Sales, Production Quantity, Target stock level, etc.

Steps:
1) Create Planning for material MC87
2) Copy to Active Version MC78
3) Transfer to Demand Management MC74

B) STANDARD SOP for Product Group

Characteristics are same: material->product group.

Steps:
1) Create Product Group MC84
2) Create Plan for Product Group MC81
3) Disaggregate Product Group Plan MC76
4) Copy to active version MC78
5) Transfer to Demand Management MC75 for PG or MC74 for material

C) FLEIXIBLE PLANNING
Here you will be able to define your own characteristics and Key figures.

Steps:
1) Create Info structure MC21
2) Maintain Planning Parameters MC7F
3) Create Planning Type MC8A
4) Create Flexible Planning MC93
5) Copy to active version MC8V
6) Transfer to Demand management
7) Create Standard SOP Planning
8) Transfer to DM from change mode of Flexible Planning with active version MC94

Demand Management determines the requirement dates and requirement quantities for
important assemblies and specifies the strategies for planning and producing/procuring
finished products. The result of Demand Management is the demand program. The
demand program differentiates planned independent requirements and customer
independent requirements. It gives the information needed in MPS and MRP for
planning at SKU level.