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What´s new in IBP Response and Supply 1905 – Order-based Planning

 

Hi everyone

With Release 1905 in IBP for Response and Supply a lot of new features and functions for the order-based planning process were offered.

Highlights in 1905:

  • Consideration of assembly scrap for in-house production
    • Assembly scrap as defined in SAP S/4HANA on the plant view of the material now integrated to order-based planning in the SAP Integrated Business Planning solution.
    • Option to overwrite assembly scrap on production data structure level.
    • Consideration of assembly scrap in order-based planning for calculation of component demands as well as capacity requirement
  • Capacity based quantity
    • Operation base quantity of the routing integrated from SAP S/4HANA (or the SAP ERP application) to the production data structure as capacity base quantity for the SAP Integrated Business Planning solution.
    • Creation of planned orders and production orders integrated from SAP S/4HANA (or SAP ERP) capacity consumption considering capacity base quantity from the SAP Integrated Business Planning production data structure
    • Consideration of the capacity base quantity planning runs in production in SAP Integrated Business Planning during planned order creation

 

 

Assembly Scrap in order-based planning

Integrate Assembly Scrap from S/4 HANA:

Assembly Scrap can be integrated with openAPI version for 1905 from S/4 HANA to IBP using the IBP Add-On.

Assembly Scrap as defined in the Material Master will be transferred to the Production Data Structure.

Transaction “Integrate Production Source of Supply to IBP” (/IBP/ECC_INT_PDS) needs to be executed.

Component scrap, operation scrap or the net. indicator in the bill of material are not supported yet.

 

 

Show Assembly Scrap in Master Data:

Assembly Scrap can be displayed in IBP using application “View Production Data Structures”.

Assembly Scrap is available in data source “SMD_PDS_V2“ to enhance master data type for Production Data Structure accordingly.

Planning behavior:

Resource Capacity

  • Resource consumption for a planned order or production order is calculated based on the gross quantity
  • Example: One piece of output material consumes one minute of capacity, scrap should be 10%. Given an available capacity of 110 minutes, planning could create a planned order with net quantity 100 EA and gross quantity 110 EA.

Product Allocation

  • Consumption quantity is based on the pegged quantities, which means net quantity of the supply element
  • Example: A sales order is placed at the factory and fulfilled by in-house production, scrap should be 10%. Given a product allocation of 100 EA, planning would confirm a sales order quantity of 100 EA. Planning will create planned orders with a total net quantity of 100 EA and total gross quantity of 110 EA to fulfill the sales order.

Adjusted Quantities

  • Consumption of adjusted quantity equals the net quantity of the planned order or production order
  • Adjusted quantity triggers supply with net quantity equal to the adjusted quantity
  • Example: Given an adjusted quantity of 100 EA, scrap should be 10%. Planning will create supply with a net quantity of 100 EA and a gross quantity of 110 EA.

Lot size

  • Lot sizes will be applied to the gross quantity
  • Example: Given a rounding lot size 10 EA, scrap should be 10%. For a demand with a requested quantity of 10 EA, planning will create supply with a gross quantity of 20 EA and net quantity of 18,18 EA.

Scrap in combination with lot sizes will lead to net quantities with decimals!

Good to know:

Only Assembly scrap is supported by IBP. Component scrap, operation scrap or net. indicator are not supported. If this is used in S/4 or ERP then this might lead to deviations in capacity consumption and component demands.

In IBP assembly scrap is defined on PDS level. To define PDS specific assembly scrap a BADI needs to be implemented in ERP IBP Add-On.

 

 

Advanced Forecast Consumption (using TS-based forecast consumption operator)

Order-based planning using time-series based forecast consumption operator:

In IBP order-based planning you want to consider advanced forecast consumption capabilities. Advanced forecast consumption capabilities are offered with an operator for IBP time-series based supply planning called “TS-based forecast consumption”.

This operator will enable forecast consumption modes, e.g.:

  • 0: first forward, then backward
  • 1: first backward, then forward
  • 2: forward only
  • 3: backward only
  • 4: forward from boundary start
  • 5: backward from boundary start

The forecast consumption operator will also allow a flexible forecast consumption level and support time-boundary values.

A consulting note is offered that will illustrate example(s) how to set up and configure TS forecast consumption operator as part of order-based planning based on sample model SAP7 + CUSTID .

Consulting note: 2776077 – Order-based planning using time-series based forecast consumption operator

 

Goods Receipt Processing Time

Maintain and Integrate Goods Receipt Processing Time:

The goods receipt processing time is the time it takes the receiving company to check the goods upon reception.

The goods receipt processing time is defined in the material master in SAP ERP or SAP S/4 HANA and integrated to IBP. The IBP system takes the goods receipt processing time into account during scheduling when creating planned elements.

Prerequisite: version 1905 or higher of the OpenAPI

Goods receipt processing time for Production, Distribution and Purchasing:

IBP Order-based planning supports goods receipt processing time for Production, Distribution and Purchasing.

Example (planned order):

OBP planning runs consider the goods receipt processing time for planned production orders based on the factory calendar of the production plant. Starting their calculation backwards from the availability date, they deduct the goods receipt processing time to determine the goods receipt date.

The following graphics shows the goods receipt date, resulting from the goods receipt processing time, and its position between requirement date and availability date.

Goods Receipt Date in OBP planning UIs:

The Goods Receipt Date column is available in the element view of the View Projected Stock app. However, the Requested or Planned Date is the basis for projected stock calculation.

The goods receipt date is also available in the Analyze Supply Usage app and in the Analyze Demand screen (Order Network), in the columns Requested Goods Receipt Date and Confirmed or Planned Goods Receipt Date.

Goods Receipt Date in Excel planning view:

Additional external key figures are offered in sample planning area SAP7 based on goods receipt date

Additional external data source columns (“external key figure qty”) are offered to configure additional key figures based on goods receipt date. Look for Suffix “GR”.

Business Process Information

  • Capacity consumption takes place at the goods receipt date
  • Supplier constraint is based on goods receipt date
  • Version specific master data attribute “Goods receipt processing time” is enabled for change
  • Application job “Extraction of order-based planning results” is enabled to extract the goods receipt date

 

Capacity Base Quantity usage in IBP

Capacity base quantity of the IBP PDS is influencing the capacity consumption calculation of the resource for planned orders and production orders.

Formula for calculating the resource consumption:

‘Order Quantity’ * ‘Bucket Consumption in PDS for the Resource’ / ‘Capacity Base Quantity in PDS for the Resource’

Integrate Capacity Base Quantity from S/4 HANA:

Capacity Base Quantity can be integrated with openAPI version for 1905 from S/4 HANA to IBP using the IBP Add-On.

Capacity Base Quantity defined in the Routing as Operation base quantity will be transferred to the Production Data Structure only if sample BAdI implementation /IBP/ECC_SAVE_PDS_BCONS_SAMPLE is implemented in BAdI /IBP/ECC_SAVE_PDS.

Transaction “Integrate Production Source of Supply to IBP” (/IBP/ECC_INT_PDS) needs to be executed.

Show Capacity Base Quantity in IBP Master Data:

Capacity base quantity can be displayed in IBP using application “View Production Data Structures”.

Good to know:

Capacity Base Quantity will be transferred to the Production Data Structure only if sample BAdI implementation /IBP/ECC_SAVE_PDS_BCONS_SAMPLE is implemented in BAdI /IBP/ECC_SAVE_PDS.

If the BAdI is not implemented the capacity base quantity in the PDS in IBP will be set to value 1 which could lead to deviating capacity consumption calculation in S/4 HANA and IBP.

 

Planning Run Profile

You can configure re-usable profiles and apply them when executing planning runs. Profiles are defined in Fiori app Planning Run Profiles:

Profiles are applied to a planning run via parameter in job scheduling:

 

Maximum lateness of primary demands

In a Planning Run Profile you can configure the maximum allowed lateness of primary demands.

Lateness can be configured by segment. Each segment is defined by a condition, e.g. by material number or location number. Different demands can have different maximum lateness settings, according to their segment condition.

Example:

  • sales order #42
    demand of quantity 10 on Monday
  • sales order #43
    demand of quantity 10 on Wednesday
  • maximum lateness 5 days
  • supply is available on Sunday, earliest

The planning run will attempt to fulfill sales orders #42 and #43, no supply is available in time. The planning run will then attempt to fulfill both sales orders late.

Sales order #42 cannot be matched with a supply because the maximum lateness of 5 days would be exceeded (Monday-Sunday: 6 days).

Sales order #43 can be matched with a supply within the maximum allowed lateness (Wednesday-Sunday: 4 days)

 

Cost Settings

Cost Settings for Constrained Forecast Run using Optimizer:

You can configure cost parameters based on a flexible set of attributes. For example, you can configure your inventory holding cost for various material groups and regions.

Cost settings for optimization are available for

  • Inventory Cost
  • Transportation Cost
  • Procurement Cost
  • Production Cost
  • Demand Cost

A selected set of attributes for material, location and location-material are available to configure cost settings according to business needs.

Note: when using cost settings please always maintain a default value reflecting your business needs. When no cost setting is configured the value zero is applied, this can lead to unexpected results.

 

 

Find additional information for all topics in the help documentation

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