Co-products Planning in PPDS
Premise: Many industries have co-products, main products & also have the need to be able to Plan the demand for the co-products, in addition to planning the main product. Also, there wasn’t a blog, to my surprise, that addressed this scenario.
Goal: This blog attempts to demo std SAP’ Co-product Heuristics & how it helps in planning demand at the co-products level
Scenario: Many industries, especially those in the bio-therapies area, have the need to re-use & plan certain co-products. Standard Lots Heuristics of PPDS has the ability to plan the main & the co-product to the extent of the quantities on the BoM created for the main product. However, in these industries, demand (of any form) can exist at the co-product level as well & it becomes vital to consider/plan such demand elements during Planning.
PPDS provides the Co-products Heuristic SAP_PP_017 to accommodate such needs. This heuristic is intuitive enough to propose “all the linked co-products” (linked to a given main product) for selection in the planning run, allowing for “selective” planning, for products, as needed. This will be illustrated on the example below.
Pre-requisite: Main product/Co-product relationship must have been set up & the PDS CIF’d into PPDS, reflecting the correct relationship.
BoM Set-up: notice the co-product & the main products
PDS in PPDS: notice the Primary product & the Output (this shows the main & co-prod relationship in PPDS)
Product View, for the main product: Notice Forecast demand exists
Product View, for the co-product: Notice Forecast demand exists
- Execute Co-prod Heuristic (SAP_PP_017)
- Check Prod view for main product: must see planned order created per the BoM & also per the Co-prod Forecast
- Check Prod View for co-prod: must see planned order created for the Forecast demand, in addition to the main prod demand
(Note: Make sure you call the Variable Heuristic from the Main Product’ product view)
Click & go to the Product tab & select the right products for Planning:
Main & Co-products selected for Planning:
Now, execute the Heuristic to check the results: click OK on the pop-ups for both the products (below screen print only shows pop-up for the main product, co-product will be similar)
Result: 2 Planned Orders created for the main product-
2 Planned Orders created for the co-product as well –
Explanation on the quantities:
- Planned Order 13756 for the main product has the 2nd position on it 13756/001, which is for the co-product. The quantities, 20 pc for the main & the 40 pc for the co-products is per the BoM.
- Planned Order 13757 for the main & co-product follows the same process, except for the quantities. The justification of the quantity 105 on the co-product & 53 for the main begins with what planning the system did for the co-product. 105 came from the attempt to meet the Forecast demand @ the co-product (of 145), 40 of which came from the Planned order 13756. Then, the BoM calculation kicks in while assigning the quantity to the main product, i.e. 105 of the co-prod equals 52.5 of the main (BoM relation) & it gets rounded up to 53.
This heuristic plans demand not just @ the co-product level, but also at the Main product.
Variations of this scenario have been left for individual consultants to explore. This blog is to bring out the feature provided by SAP.
Cheers & Enjoy SAP
Good explanation on co-product heuristic, thanks for sharing!
Good explanation on Co-product planning. Will forecast be consumed in either products?
Which Planning Strategy is recommended to be used for Main and co-product?