SAP AG LO935 Preface-1

SAP AG 1999

LO935 Flexible Planning

Flexible PlanningFlexible Planning SAP AG

R/3 System

Release 4.6C Mai 2001 Material number 50047186

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SAP AG 2001

Copyright 2001 SAP AG. All rights reserved.No part of this publication may be reproducedor transmitted inany form or for any purpose without the express permission ofSAP AG. The information contained herein may be changedwithout prior notice.

All rights reserved.

Copyright

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Information Systems

Processes in Salesand Distribution

LO150 5 daysLogistics InformationSystem (LIS)Reporting

LO930 2 days

Level 2 Level 3

Processes inProcurement

LO020 5 days

ManufacturingPlanning & Executionfor Discrete & Repetitive

LO050 5 days

Executive InformationSystem (EIS) 2 -Setting up the System

AC620 2 days

Advanced Functionsof the Report Writer

CA710 3 days

Advanced LISConfiguration

LO940 2 days

Technical Aspects inLIS with Special Focuson PURCHIS/INVCO

LO555 2 days

Technical Aspects inLIS with Special Focuson PPIS

LO275 2 days

Technical Aspects inLIS with Special Focuson SIS

LO630 2 days

Executive InformationSystem (EIS) 1 -Reporting

AC615 2 days

Basics of the ReportPainter/Report Writer

CA705 2 days

Flexible PlanningLO935 2 days

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Prerequisites

z Essential:Good knowledge of content of LO930 - LogisticsInformation System (LIS) Reporting

z Recommended:LO050 - Manufacturing Planning & Execution for Discrete &Repetitive

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Target group

z Project team members responsible for planning inthe Logistics Information System

Notes to the user The training materials are not teach-yourself programs. They complement the course instructors

explanations. On the sheets, there is space for you to write down additional information.

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Course Overview

z Course Goalsz Course Objectivesz Course Contentz Course Overview Diagramz Main Business Scenario

Contents:

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This course will enable you to:

z Plan based on information structuresz Use the planning tools in the LIS systemz Summarize the uses of the planning methods and

differences between themz Maintain master data for various planning methods

Course Goals

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On completing this course, you will be able to:

z Outline the differences between Standard SOP andFlexible Planning

z Create sales and production plansz Use the forecast toolz Create planning types, macros and eventsz Perform resource planning and rough-cut capacity

analysisz Use mass processingz Transfer planning results to Demand Management

Course Objectives

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Unit 7 Events

Unit 8 Production Planning

Unit 9 Mass Processing

Unit 10 Allocations

Unit 11 Conclusion

Unit 1 Introduction

Unit 2 Planning Methods

Unit 3 Master Data

Unit 4 Planning Types and Macros

Unit 5 General Planning Functions

Unit 6 Statistical Forecast

Preface

Appendices

Course Contents

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Course Overview

Planning Method

Stat. Forecast

MayMay

Master Data

Events

Production Planning

Allocations

InfoStructure

Mass ProcessingJob

Planning Functions

Planning Types

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z You are a member of your companys planningimplementation team. Define your info structure,that means your planning levels (characteristics)and key figures you want to plan.

Business Scenario

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Quantities and dates...

Order and rate proposals BOM explosion Scheduling at work

centers

Production controlledby run scheduleheaders

Production ordercontrol

MPS/MRPMPS/MRP

RepetitiveManufacturingRepetitiveManufacturing

SFCSFC

Statement ofdemand

SKUs/configurable materials DemandManagement

DemandManagement

.

.

.

Sales organizationDivisionSold-to partyMaterialPlant

Sales plansProduction plans

.

.

.

SOPSOP

Logistics Planning Systems

Sales & Operations Planning (SOP) is the planning tool of the Logistics Information System (LIS). Sales & Operations Planning (SOP) is a flexible forecasting and planning tool with which sales,

production, and other supply chain and logistics targets can be set. The basis for this is provided by historical, existing, and/or estimated future data. Planning with SOP is generally carried out on a medium to long term basis. Resource planning can also be carried out to determine the amounts of the work center capacities and other resources required to meet these targets. SOP supports both the high-level planning of complex planning hierarchies and the detailed planning of finished products. Therefore, either a top-down or a bottom-up approach to planning is possible.

The architecture of the logistics planning systems is based on the MRP II concept.

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Sales Planning

Production Planning

Purchasing

Retail

Business Applications of SOP

SAP AG

In SOP, you can plan future sales volumes on the basis of historical data as well as market intelligence and anticipated trends and changes at your company. Aggregate sales planning is possible. Sales plans can be kept consistent at all levels of your organization.

Sales planning provides the input for production planning. You typically carry out production planning at product group, finished product, or SKU level.

With SOP, you can manage the allocation of scarce products to different customers or customer groups.

Complex products manufactured in a large number of variants can also be planned. Possible uses of SOP in purchasing are the planning of quotas for multiple sources of supply or the

tracking of purchasing budgets. In retail, you can use the SOP system to plan purchasing budgets and monitor open-to-buy.

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Period unit

Characteristics

157

398

Key figures

Versions

RegionSales organizationMaterialPlantetc.

Incoming ordersInvoiced salesetc.

Day Week Month Fiscal year variant Flexible time buckets

X

A00 Active000 Actual data001 Forecast based on trend model002 Sales incl. market intelligenceetc.

A00 Active000 Actual data001 Forecast based on trend model002 Sales incl. market intelligenceetc.

Info Structure Definition

Sales & Operations Planning uses the same data infrastructure as the logistics information systems (e.g. the Sales Information System). In other words, planning data as well as actual data is stored in information structures.

There are three different types of information in an information structure: Characteristics are criteria by which data reduction is carried out: e.g. sales organization,

distribution channel, customer, material, and plant. Periods are time units which give the information structures a time reference. Planning data is

displayed and stored per storage periodicity. This is not necessarily the same as the update period of the information structure.

Key figures are values of particular business interest: e.g. incoming sales and production quantities. Historical key figure values give a measure of business performance.

In addition, SOP allows you to maintain alternative planning scenarios in the same information structure. You do this using planning versions. Version A00 is the active planning version. Use it to maintain your definitive plan. Inactive versions are numerical and consist of three digits. Use them to maintain test plans.

Remember that version 000 contains actual data. Do not plan version 000.

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Info structure

EUROPE

Central

Paris

Characteristics

USA

North South

New York Dallas

RegionSales organizationSales officeMaterial

(Product groupings or materials)

North America

Flexible Planning: Master Data

The objects you plan in SOP depend on the characteristics in the info structure, and on the sequence of the characteristics in the info structure.

By defining the values of the planned characteristics, you create the master data for flexible planning.

Some of you may know the above structure as the sales forecast hierarchy (SFH).

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Multiple options forcustomized configuration

Planning hierarchies

Consistent, level-by-level,or delta planning

Content and layout ofthe planning table isuser-defined

Flexible Planning

Largely preconfigured

Product groups

Level-by-level planning

Standard planning table

Standard SOP

Flexible Planning vs. Standard SOP

Sales & Operations Planning is made up of two elements: flexible planning and standard SOP. The above table shows you the differences between them.

To access flexible planning, select Logistics Logistics Controlling Flexible planning. To access standard SOP, select Logistics Production SOP. You can copy the planning table of standard SOP and then modify it to suit your companys needs.

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Rules

AutomaticPeriodicFlexible

Update

S001

S730

Copy datafrom one info structureto another

Info structures

S140

Use of Copy Management in Planning

Copy Management is a tool for managing data in information structures. In Sales Operations Planning, you can use it to copy actual data from a standard information

structure to the information structure you want to use for planning. You can therefore carry out comparisons of planned and actual data.

Using Copy Management to populate your planned information structures with actual data has performance advantages. Operative system load is minimized due to the decrease in the number of info structures that are updated. (You can also supply planned information structures with actual data through LIS updating.)

Another possible use of Copy Management would be to copy data you have planned in one information structure to information structure S140, where you then plan product allocations.

You access Copy Management in Customizing for the Logistics Data Warehouse.

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AdditionalInformation

Material masterCustomer masterDocuments

.

.

.

Sales organization: US Sales office: US North

CustomerIncoming orders

Jones, Inc.Smith, Inc.

25,00035,000

20,00030,000

Sales organization: US

Sales officeIncomingorders

Invoicedsales

60,00040,000

50,00040,000

Analysis of S730Incoming orders

Invoicedsales

100,000 90,000Drill downto sales offices

Sales organization

US

Drilldown tocustomers

US NorthUS South

Invoicedsales

Standard Analyses: Reporting Techniques

You can run a standard analysis for any planning version based on consistent planning. Choose Environment Reporting.

You can store the standard analysis as a selection version. A selection version is not the same as a planning version.

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Classification

ABC Analysis

AA B CCCustomers

Sales orders

Incoming orders

Materials (%)

Dual Classification

Order value No.orders

Cumulative Curve

12/95 1/96 2/96 3/96 4/96 5/96

Invoiced sales

Planned/Actual Comparisons

Previous/Current Year Comparison: InvoicedSalesCustomer Planned Actual Difference %

Customer 1 $30,000 $40,000 $10,000 +33%Customer 2 $66,000 $70,000 $ 4,000 +6%Customer 3

Customer SalesCustomer Sales Orders Orders No No.. orders orders

BaxterBaxter 5000 3000 100 5000 3000 100TaylorTaylor 9000 15000 3000 9000 15000 3000CrowthCrowth 6000 9500 750 6000 9500 750

Standard Analyses: Analytical Techniques

A wide range of functions can be used to examine the underlying key figures and characteristic values of an analysis from a business perspective. All the functions for statistical analyses are graphically supported.

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z SOP is the planning tool of the LogisticsInformation System.

z Sales & Operations Planning (SOP) can be used toplan sales, production, and other supply chain andlogistics activities.

z The Logistics Information System and Sales &Operations Planning have the same datainfrastructure.

z Sales & Operations Planning is made up of twoelements: Flexible planning and standard SOP.

Introduction: Summary

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Planning Methods

z Uses of the planning methods

z Consistent planning

z Level-by-level planning

Contents:

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On completing this unit, you will be able to:

Planning Methods: Unit Objectives

z Explain the differences between the planningmethods

z Outline the features and benefits of eachplanning method

z Maintain Customizing for Flexible Planningz Summarize performance enhancements

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Course Overview

Planning Method

Stat. Forecast

MayMay

Master Data

Planning Functions

Planning Types

Events

Allocations

InfoStructure

Mass ProcessingJob

Production Planning

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Planning Methods: Business Scenario

z You are a member of your companys planningimplementation team. The info structure for the newSOP planning initiative is already created. Now youmust decide which planning method will meet yourcompanys requirements best.

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Level-by-level Top-down

Consistent Bottom-up & top-down

Planning Methods

SOP supports both top-down and bottom-up planning. These two approaches are supported in different ways by the different planning methods. It is

important to consider your choice of planning method carefully. You cannot define more than one planning method for any information structure. However, you can

always create a new information structure with another planning method and copy over the original data using Copy Management.

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Material AM001 is selected from planning hierarchy

Automatic disaggregationRegion Material Plant Planned qty Proportion

New Jersey AM001 0001 600 60 %New Jersey AM002 0001 - New Jersey AM003 0001 -New Jersey AM004 0001 -

California AM001 1001 400 40%California AM002 1001 -California AM003 1001 -

You enter an order quantityof 1000 pc. for material AM001:

Create Consistent Planning

Consistent planning has two main advantages: Ease of use: you plan your data at one level and can rely on data consistency at all other levels. You can create planning data from any perspective you want.

The value of the total in relation to the details is determined by the proportional factors. Equally, the value of one detail in relation to another detail is determined by the proportional factors. For more information on the proportional factors, see Unit Master Data.

In the above example, disaggregation is based on the proportional factors.

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Region Material Plant Order quantity

New Jersey AM001 0001 600New Jersey AM002 0001 100 New Jersey AM003 0001 150New Jersey AM004 0001 50

California AM001 1001 400 California AM002 1001 200California AM003 1001 100

Region Material Plant Order quantity

New Jersey AM001 0001 1200New Jersey AM002 0001 100 New Jersey AM003 0001 150New Jersey AM004 0001 50

California AM001 1001 800 California AM002 1001 200California AM003 1001 100

1000

2000

You change incoming orders from 1000 to 2000:

Change Consistent Planning

Planning data can be accessed from any level. You determine the combination, or set, of characteristic values that you want to plan by the values you enter in the initial dialog box when you call the planning screen; in consistent planning, you can specify any, all, or no characteristic values.

Data is aggregated dynamically when you call the planning table. In the above example, material AM001 is selected for planning. The order quantities of this material

are being planned in all regions and plants. The planner changes the total order quantity from 400 to 800 units. Disaggregation is carried out automatically and is based on previously planned data.

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Bulbs

Consistent Planning Views

With the consistent planning method, you have a consistent view on your planning data at all times - whatever level you decide to plan at. In technical terms, the sum of the key figures at the detailed level gives the key figure at the total level.

The above example shows two possible views: the central planning of all lightbulbs in the US and the decentralized planning of standard-sized lightbulbs in New Jersey

Planning levels are interdependent: changes you make at one planning level have an immediate effect on all the other planning levels. The system carries out aggregation and disaggregation automatically at runtime.

Planning is based on a self-defined information structure. Your view on the planning table is non-hierarchical.

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Characteristcs

Sales organization

Distribution channel

Material

Order quantity stored

10 pc 20 pc 5 pc 30 pc

Order quantity visible

10 pc 20 pc 5 pc 30 pc

30 pc 35 pc

75 pc

Key figure

Save Consistent Planning

In consistent planning data is stored at detailed level. If you enter the planning table at aggregate level the key figure values are aggregated.

This procedure has two advantages: You plan your data at one level and can rely on data consistency at all other levels. You can create planning data from any perspective you want.

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Incoming orders quantityIncoming orders quantity Incoming orders quantityIncoming orders quantity

100 0

100 100

40

40

Original plan

Sales organization

Distribution channel

Material

Changed plan

50

20 10 15 5 20 10 15 5 20 10 15 5

50

Master dataMaster data

75 40

20 10 15 5

75 40

50

30 20

50

Planned incoming order quantities are changed from 30 pc and 20 pc to 75 pc and 40 pc at distribution channel level

Foreground Saved Foreground Saved

30 20

Level-By-Level Planning

In level-by-level planning, the planning hierarchy levels are independent of each other. Data is stored separately at each planned level.

You have a hierarchical view of the data in the planning table. No automatic aggregation or disaggregation is carried out. Plans at different levels are not

necessarily consistent.

In level-by-level planning, changes you make at one level are not automatically fed through to other levels.

It is possible to impose data consistency across several planning levels. To disaggregate data, you must use the function Edit -> Disaggregate line in the planning table. Disaggregation is then based on the constant proportional factors from the planning hierarchy. To aggregate data, you must define an aggregation macro in the planning type.

The advantage of level-by-level planning is that you get a chance to check your data before passing it on to other levels.

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Consistent Planning Level-By-Level PlanningPlanned values saved at detailed level only.

Entire planning hierarchy can be planned in one transaction (no characteristic values selection).

Planning table can be called with gaps in list of selected characteristic values.

Planning values are visible:(i) for the characteristic values combination you enter (ii) at the detailed level(iii) at all levels in between

Identical key figures planned at total and detailed level.

Key figures are defined in the planning type once only.Macros can be calculated at any level.

Planned values can be saved at all levels.

At least one characteristic value must be specified.Each level must be planned and disaggregatedindividually

Planning table must be called without gaps in list ofselected characteristic values.

Planning values are visible:(i) for the characteristic values combination you enter(ii) at the level below that

Key figures at owner and member levels can be different.

Key figures must be defined at both owner and memberlevels in the planning type.Macros can be calculated at either owner or memberlevel, depending on how you have defined them.

Consistent vs. Level-By-Level

Standard SOP always uses the level-by-level planning method. Standard SOP is based on information structure S076.

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FunctionAutomatic aggregationAutomatic disaggregationbased on factors saved in databaseAutomatic time-dependentdisaggregation based onprevious planning dataCreate planning hierarchyPlanning types/macrosSet opening stockautomatically in backgroundForecastEventsResource levelingBackground processingFix key figure values in theplanning tableLong texts for versions andperiods in the planning tableStandard analysis for info structureTransfer to Demand Management

ConsistentYesYes

Yes

YesYesYes

YesYesYesYesYes

Yes

YesYes

Level-By-LevelNoNo

No

YesYesYes

YesYesYesYesNo

Yes

NoYes

Comparison of the Different Planning Methods

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Key figureparameters

Planning method

Field catalogs:characteristics

Field catalogs:key figures

Defineinformation

structureDefinemacros

Define planning typeDefine planning type

Define screen layout

Planningunits

Customizing for Flexible Planning

Before working with flexible planning, you must first make a number of settings in Customizing: for example, you must define the planning method of each information structure.

You can use only one planning method to plan an information structure. To plan an information structure with a second planning method, create a second information

structure based on the first one and then copy over the actual data using Copy Management. Then define the planning method of this new information structure.

You must define the planning units of each information structure. These are: currency unit

period unit (storage periodicity) unit of measure

It may happen in either consistent planning or level-by-level planning that the base unit of a material is different than the base unit of the information structure. In this case, you maintain the base unit of the information structure as an alternative unit in the material master record, together with a conversion factor.

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Performance Enhancements

z No user exitsz No zero column usagez No event usagez Do not save to forecast DBz Planning object check offz Key-figure-restricted DB update offz ALE permittedz Document key figure

You access the settings listed above in the Customizing activity Set parameters of info structures and key figures. They are all designed to improve the performance of your information structures. Two of them are explained in the following notes. For a description of the others read the F1 help.

Planning object check off: If you set this indicator, you improve performance. However, the system does not perform the following checks: Are the selected characteristic value combinations in the planning hierarchy? They might be in actual data of the information structure, but not in the planning hierarchy. Has the planning hierarchy been revised? In the master data menu of Flexible Planning, you have an option for revising the planning hierarchy. This option allows you to exclude one or more characteristic value combinations (planning objects) from the planning process. When you call the planning table, the system checks to see which characteristic value combinations are to be planned for this information structure.

Key figure restricted DB update off: If you set this indicator, you improve performance. However, the system cannot save two planning types of an information structure simultaneously because ALL the key figures in the information structure are read when a planning type based on the information structure is saved. If you do not set this indicator, the system automatically locks and saves only those key figures that are contained in one planning type. This means that two or more planning types of an information structure can be saved at the same time.

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Planning Methods: Unit Summary

z Explain the differences between the planningmethods

z Outline the features and benefits of eachplanning method

z Maintain Customizing for Flexible Planningz Summarize performance enhancements

You are now able to:

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Data Used in the Exercises

Data Data in Training System Data in IDES System Information Structure

S630 to S650 S140

S630 to S650 S140

Sold-to Customers 1001, 1175 1002,1012,1033,1174, 1300, 1670, 1671, 1900, 1901, 2004, 2140, 2200, 2300, 2500, 14000, 99999

1001, 1175 1002,1012,1033,1174, 1300, 1670, 1671, 1900, 1901, 2004, 2140, 2200, 2300, 2500, 14000, 99999

Sales Organization 1000 1000 Distribution Channel

12 12

Division 00 when ordering 04 when planning

00 when ordering 04 when planning

Materials L-40C, L-40F, L-40R, L-40Y L-60C, L-60F, L-60R, L-60Y L-80C, L-80F, L-80R, L-80Y

L-40C, L-40F, L-40R, L-40Y L-60C, L-60F, L-60R, L-60Y L-80C, L-80F, L-80R, L-80Y

Plant 1200 1200 Storage Location 0001 0001

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Exercises

Unit: Planning Methods Topic: Planning Methods

Explain the differences between the three planning methods.

Your sales/forecasting department would like to see changes made to your plan at all levels of the planning structure, at the time the plan is changed. Therefore, the consistent planning method best suits the planning requirements of your organization.

1-1 Using the Implementation Guide (IMG), verify the planning parameters of your info structure S630 + ##. The parameters should have AT LEAST the following:

Field Name Input Data Planning Method Exchange rate type Statistics currency Base unit of measure Planning periods Capacity figure

1-1-1 What is the menu path in the IMG for changing the planning parameters for an info structure?

The information message The table is client-independent., is advising you that each change you make will have an effect on all other clients in the system. Press Enter to continue.

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Solutions

Unit: Planning Methods Topic: Planning Methods

1-1 Using the Implementation Guide (IMG), verify the planning parameters of your info structure S630 + ##. The parameters should have AT LEAST the following:

Field Name Input Data Planning Method K (Consistent) Exchange rate type M Statistics currency UNI Base unit of measure CAR (carton) Planning periods M Capacity figure

1-1-1 What is the menu path in the IMG for changing the planning parameters for an info structure?

The information message The table is client-independent.. , is advising you that each change you make will have an effect on all other clients in the system. Press Enter to continue.

Tools o ASAP o Customizing o Edit Project o SAP Reference IMG Logistics - General o Logistics Information System (LIS) o Planning o Master data o Set parameters for info structures and key figures Or Production o Sales and Operations Planning (SOP) o Master data o Set parameters for info structures and key figures Scroll down to your info structure S6## and then double-click on the table

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Master Data

z Planning hierarchy

z Product group

z Proportional factors

z Version management

Contents:

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On completing this unit, you will be able to:

Master Data: Unit Objectives

z Name the differences between master data forFlexible Planning and Standard SOP

z Explain how to create master dataz Outline the role of the proportional factors

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Master Data: Course Overview

Planning Method

Stat. Forecast

MayMay

Master Data

Events

Allocations

InfoStructure

Mass ProcessingJob

Production Planning

Planning Functions

Planning Types

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Master Data: Business Scenario

z Your company builds its forecast based on thehistory of invoiced quantity for the same quarter ofthe previous year. You expect your product mix tobe consistent. Therefore, you can build yourplanning hierarchy and calculate your proportionalfactors based on this history.

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CharacteristicsCharacteristics ValuesValues

Salesorganization

Sales office

Customer

Material

USAEurope

Paris Dallas Boston

Jones, Inc. Smith, Inc.

L - 40F L - 100FL - 60F L - 100CL - 60C

Characteristic Values to be Planned

You create the master data for Flexible Planning by specifying the values of the characteristics you want to plan. You do this in a planning hierarchy.

For consistent planning and level-by-level planning, you need to create a planning hierarchy before you can plan.

A planning hierarchy is based on an information structure. You can create only one planning hierarchy per information structure.

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Info structure

EUROPE

Central

Paris

Characteristics

USA

North South

New York Dallas

RegionSales organizationSales officeMaterial

(Product groupings or materials)

North America

Planning Hierarchies

The objects you plan in SOP depend on the characteristics in the info structure, and their sequence. By defining the values of the planned characteristics, you create the master data for Flexible

Planning. You do this in a planning hierarchy. You can only create one planning hierarchy per information structure.

In a planning hierarchy, the characteristic values represent the organizational levels at which you want to plan.

To create a planning hierarchy manually, select Master data -> Planning hierarchy -> Create from the Flexible Planning menu.

You have already defined the default units of a planning hierarchy in the Customizing step Set parameters of info structures and key figures. These are period unit, base unit of measure, and currency.

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1997 1998

Characteristic value combinationsfound in version 000

xxxxxxxx

xx

x

xxx

xxxxxxxx

xEur Central Paris M1Eur Central Paris M2Eur Central Paris M3Eur Central Paris M4Eur Central Paris M5

USA North NY M7USA North NY M8

USA North NY M6

x

USA South Dal. M11USA North NY M10

USA South Dal. M12USA South Dal. M13USA South Dal. M14USA South Dal. M15

USA North NY M9 Data is filtered using method

USA South Dal. M16 xxUSA South Dal. M17

x

x

Automatic Creation of a Planning Hierarchy

You can create a planning hierarchy automatically on the basis of actual data (version 000) or existing planned data (versions A00-999).

To create a planning hierarchy automatically on the basis of actual data, select Master data -> Generate master data.

It is often not necessary, or even desirable, to plan all products that are sold to all customers, including materials that are hardly ever sold. SAP offers you two ways to filter out characteristic value combinations (i.e. data records) for planning: specify a time frame

define your own method in Customizing A method is a program or programs written by your company to perform a clearly defined, highly

specific task when certain conditions are fulfilled. For example, a method allows you to perform complex transformations on statistical data.

One possible method would be to select materials or customers by their ABC indicator. For example, you might want to plan A materials individually, and B and C materials in collective planning objects.

You can simulate the results of this automatic creation function. This lets you see how many characteristic value combinations would be found in the specified time frame and therefore helps you decide how best to create the planning hierarchy.

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Info structure S624

Paris

L-40F

Europe USA

Dallas

Smith, Inc.

Boston

40% 60%

100% 50% 50%

100% 100%

30% 20% 50%

12%12% 21%21%20%20%8%8% 24%24%

Jones, Inc. Baker, Inc.

70% 30% 20% 80%

100%

6%6%9%9%

L-60F L-100F L-40F L-60F L-60F L-100F

Proportional Factors for Consistent Planning

In consistent planning, disaggregation is based on the proportional factors between the total level and the detailed level.

You can store constant proportional factors in the planning hierarchy. These proportional factors are not specific to any one key figure, characteristic value, or period.

There are two ways to calculate constant proportional factors for consistent planning:

Using actual data Using the proportions already maintained between adjacent levels in the planning hierarchy

To calculate the proportional factors for consistent planning on the basis of actual data, select Master data -> Calculate proportions -> Using actual data from the flexible planning menu.

To calculate the proportional factors for consistent planning on the basis of the level-to-level proportions in the planning hierarchy, select Master data -> Calculate proportions -> Using planning hierarchy from the flexible planning menu.

You can override the constant proportional factors in the planning table at any time. If you do this, however, subsequent disaggregation is based on the new proportional factors which the system derives from the detailed planning data, and not on the constant proportional factors. To re-apply the constant proportional factors to a specific key figure in the planning table, you must select Edit -> Disaggregate line.

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Info structure S625

Paris

L-40F

Europe USA

Dallas

Smith, Inc.

Boston

40% 60%

100% 50% 50%

100% 100%

30% 20% 50%

Jones, Inc. Baker, Inc.

70% 30% 20% 80%

100%

L-60F L-100F L-40F L-60F L-60F L-100F

Proportional Factors for Level-By-Level Planning

Using proportional factors, you describe the dependencies of the individual nodes in a planning hierarchy or a product group hierarchy more closely. These factors allow you to disaggregate planning data through the planning hierarchy. Whether or not this happens automatically depends on the planning method (see Unit Planning Methods).

In level-by-level planning, disaggregation is based on the proportional factors between adjacent planning levels. This applies both to Standard SOP and to information structures in Flexible Planning for which level-by-level planning has been defined.

You can create these proportional factors manually or automatically.

In most cases, you base this calculation on the actual data in version 000. However, you can also use any planning version.

To create the proportional factors for level-by-level planning automatically, you have two choices: Either create them for a single level in the planning hierarchy or product group with Edit

Calculate proportions Or create them for multiple levels of the planning hierarchy or product group with Master data

Calculate proportions Using actual data or Product group Calculate proportions

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LightbulbsLightbulbsPlant 9999Plant 9999

Line "frosted"Plant 0001

40 wattPlant 0001

60 wattPlant 0001

40 wattPlant 0002

60 wattPlant 0002

100 wattPlant 0002

Line "clear" Plant 0002

Product Group Hierarchy

You create the master data for standard SOP by maintaining one or more product groups. The members of a product group can be either further product groups or materials. In a product group, you can group together products according to any criteria (distribution,

production method, and so on). For each product group, the system creates a material master record of material type PROD. Enter both product groups and materials with a plant reference. For each product group member, enter a description, a unit of measure, a units of measure

conversion factor (if the unit of the member is different than the owner unit), and an aggregation factor.

Cross-plant planning is possible. Planning can be carried out at material or product group level Use level-by-level planning with product groups. Standard SOP always uses the level-by-level planning method. Standard SOP is based on information structure S076.

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InfoStructure

A00Active Version

000Actual Data

001Simulation 1

002Simulation 2

UpdatingDemand Mgt.

Copy

Version Management

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Master Data: Summary

z Name the differences between master data forFlexible Planning and Standard SOP

z Explain how to create master dataz Outline the role of the proportional factors

You are now able to:

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Exercises

Unit: Master Data Topic: Planning Hierarchy

Explain the two ways of creating master data for flexible planning. Outline the role of the proportional factors.

Your company builds its forecast based on the history of invoiced quantity for the same quarter of the previous year. You expect your product mix to be consistent. Therefore, you can build your planning hierarchy and calculate your proportional factors based on this history.

1-1 The following is the forecast input sheet your organization has been using to load forecasts into your legacy system. It shows actual data collected for the prior year, allowing space for your sales force to enter the sales forecast in currency values. Your info structure S630 + ## already supports this format. Create a planning hierarchy for your info structure that supports the data on the following sheet:

Sales Organization 1000 Germany Frankfurt Division 04 Lighting, Customer 1000 Becker Berlin Plant 1200

Material L-80F 80 Watt Frosted Light bulbs Month+1 Month+2 Month+3 Month+4 Month+5 Last Years Invoiced Sales 10000 11000 12000 13000 14000 Last Years Invoiced Qty 1000 1100 1200 1300 1400 Sales Forecast Qty Material L-40C 40 Watt Clear Light bulbs Month+1 Month+2 Month+3 Month+4 Month+5 Last Years Invoiced Sales 5000 6000 7000 8000 9000 Last Years Invoiced Qty 500 600 700 800 900 Sales Forecast Qty

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Sales Organization 1000 Germany Frankfurt Division 04 Lighting, Customer 1175 Elektromarkt Bamby Plant 1200

Material L-60C 60 Watt Clear Light bulbs Month+1 Month+2 Month+3 Month+4 Month+5 Last Year s Invoiced Sales 10000 11000 12000 13000 14000 Last Year s Invoiced Qty 1000 1100 1200 1300 1400 Sales Forecast Qty Material L-80F 80 Watt Frosted Light bulbs Month+1 Month+2 Month+3 Month+4 Month+5 Last Year s Invoiced Sales 5000 6000 7000 8000 9000 Last Year s Invoiced Qty 500 600 700 800 900 Sales Forecast Qty Material L-40C 40 Watt Clear Light bulbs Month+1 Month+2 Month+3 Month+4 Month+5 Last Year s Invoiced Sales 2500 3000 3500 4000 4500 Last Year s Invoiced Qty 250 300 350 400 450 Sales Forecast Qty

1-1-1 Based on this input sheet, what are the planning levels you will enter into your planning hierarchy?

1

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1-1-2 Based on the above structure, begin entering your planning hierarchy. When creating the planning hierarchy for the first time, leave the

characteristics blank.

A message will be displayed about the proportional factors. Because we are not entering proportional factors, press All maintnce to bypass this message.

Don t forget to enter the data for both Sold-to Parties.

Leave all the aggregation and proportion factors blank for now, because we will let the system calculate the proportions based on actual data.

1-1-3 What is the menu path for this function?

1-1-4 Display the hierarchy graphic for your planning hierarchy thus far. How many boxes (nodes) does it have?

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1-2 You have decided entering the planning hierarchy is a tedious task. Since you forecast based on your history of invoiced quantity, automatically build your planning hierarchy based on last 12 month (including the actual month). When you perform this function for the first time, select the simulation indicator. For the second run, turn off the simulation indicator. 1-2-1 What version will you use to base your planning hierarchy?

1-2-2 When you have rerun this step with the simulation indicator turned off, display your planning hierarchy, including the hierarchy graphic.

1-2-3 What additional sold-to partner(s) were created?

1-2-4 What materials were created for this partner?

1-2-5 What is the difference between your manual entries and the automatically created entries?

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1-3 Automatically create proportional factors for your planning hierarchy. Base this calculation on actual values of the key figure invoiced qty. Make sure that the proportions are adjusted in the planning hierarchy. Use the last six month for the calculation

1-3-1 What version will you use to calculate your proportional factors?

1-3-2 Display your planning hierarchy. Where do you see the proportional factors?

1-3-3 Why is a proportional factor of sero calculated for sold-to partner 1000?

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Solutions

Unit: Master Data Topic: Planning Hierarchy

1-1 The following is the forecast input sheet your organization has been using to load forecasts into your legacy system. It shows actual data collected for the prior year, allowing space for your sales force to enter the sales forecast in currency values. Your info structure S630 + ## already supports this format. Create a planning hierarchy for your info structure that supports the data on the following sheet:

Sales Organization 1000 Germany Frankfurt Division 04 Lighting, Customer 1000 Becker Berlin Plant 1200

Material L-80F 80 Watt Frosted Light bulbs Month+1 Month+2 Month+3 Month+4 Month+5 Last Year s Invoiced Sales 10000 11000 12000 13000 14000 Last Year s Invoiced Qty 1000 1100 1200 1300 1400 Sales Forecast Qty Material L-40C 40 Watt Clear Light bulbs Month+1 Month+2 Month+3 Month+4 Month+5 Last Year s Invoiced Sales 5000 6000 7000 8000 9000 Last Year s Invoiced Qty 500 600 700 800 900 Sales Forecast Qty

Sales Organization 1000 Germany Frankfurt Division 04 Lighting, Customer 1175 Elektromarkt Bamby Plant 1200

Material L-60C 60 Watt Clear Light bulbs Month+1 Month+2 Month+3 Month+4 Month+5 Last Year s Invoiced Sales 10000 11000 12000 13000 14000 Last Year s Invoiced Qty 1000 1100 1200 1300 1400 Sales Forecast Qty Material L-80F 80 Watt Frosted Light bulbs Month+1 Month+2 Month+3 Month+4 Month+5 Last Year s Invoiced Sales 5000 6000 7000 8000 9000 Last Year s Invoiced Qty 500 600 700 800 900 Sales Forecast Qty Material L-40C 40 Watt Clear Light bulbs Month+1 Month+2 Month+3 Month+4 Month+5 Last Year s Invoiced Sales 2500 3000 3500 4000 4500 Last Year s Invoiced Qty 250 300 350 400 450 Sales Forecast Qty

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1-1-1 Based on this input sheet, what are the planning levels you will enter into your planning hierarchy?

1-1-2

Based on the above structure, begin entering your planning hierarchy When creating the planning hierarchy for the first time, leave the

characteristics blank.

A message will be displayed about the proportional factors. Because we are not entering proportional factors, press All maintnce to bypass this message.

Don t forget to enter the data for both Sold-to Parties.

Sales Org 1000

Material L-80F

Material L-40C

Material L-80C

Material L-40C

Sold-to Party 1175

Division 04

Sold-to Party 1001

Material L-60C

Plant 1200

Plant 1200

Plant 1200

Plant 1200

Plant 1200

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Leave all the aggregation and proportion factors blank for now, because we will let the system calculate the proportions based on actual data.

Logistics o Logistics controlling o Flexible planning o Master data o Planning hierarchy o Create Enter your info structure S630 + ##. Press the green check button twice. On the Create Planning Hierarchy screen, enter sales organization 1000. Press [Next level]. Enter division 04. Press [Next level]. Enter Sold-to 1000 and 1175. Press [Next level]. Continue entering data using the input sheet above. When you are finished, press [Save].

1-1-3 What is the menu path for this function?

Logistics o Logistics controlling o Flexible planning o Master data o Planning hierarchy o Create

1-1-4 Display the hierarchy graphic for your planning hierarchy thus far. How many boxes (nodes) does it have? Planning hierarchy o Graphics Enter Info Structure S-##, Press Enter. Leave the characteristics blank. The number of nodes is 14 + 1 for the planning hierarchy S##.

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1-2 You have decided entering the planning hierarchy is a tedious task. Since you forecast based on your history of invoiced quantity, automatically build your planning hierarchy based on the last 12 month (including the actual month). When you perform this function for the first time, select the simulation indicator. For the second run, turn off the simulation indicator. From the Flexible Planning menu: Master data o Generate master data Enter your info structure S630 + ##. Enter version 000. Enter the date range specified above. Be sure the simulation indicator is selected for the first time you run this step. [Execute] Green-arrow back. Turn the simulation indicator off. [Execute] 1-2-1 What version will you use to base your planning hierarchy?

Version 000 Actual data 1-2-2 When you have rerun this step with the simulation indicator turned off,

display your planning hierarchy, including the hierarchy graphic. From the Flexible Planning menu: Master data o Planning hierarchy o Display Enter your info structure S630 + ##. Leave the characteristics blank. Drill down to each level in the planning hierarchy using the [Next level] button. To see the graphic, press [Hierarchy graphic].

1-2-3 What additional sold-to partner(s) were created? 1001 and 1300

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1-2-4 What materials were created for this partner? L-40F, L-40Y, L-60Y and L-80F ...

1-2-5 What is the difference between your manual entries and the automatically created entries? Your manual entries have proportional factors of 0. The automatically created entries have factors of 100. Technically, there is no difference between these entries. The behavior of these entries will all be the same.

1-3 Automatically create proportional factors for your planning hierarchy. Base this calculation on actual values of the key figure invoiced qty. Make sure that the proportions are adjusted in the planning hierarchy. Set the indicator Consistent planning: adjust plng hierarchy proportions. Use the last six month for the calculation

From the Flexible Planning menu: Master data o Calculate proportns. o Using actual data Enter your info structure S630 + ##. Select Consistent planning: Adjust plng hierarchy proportions. Press [Enter]. Use version 000. Use the date range specified above. Select invoiced quantity. 1-3-1 What version will you use to calculate your proportional factors?

Version 000 1-3-2 Display your planning hierarchy. Where do you see the proportional

factors?

Master data o Planning hierarchy o Display The proportional factors are displayed at each level of the planning hierarchy, relative to the level above.

1-3-3 Why is a proportional factor of sero calculated for sold-to partner 1000? Because there are no actual data for sold-to partner 1000

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Planning Types and Macros

z Planning typesz Include actual dataz Performance enhancementsz Drill down functionalityz Variable time bucketsz Macros

Contents:

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On completing this unit, you will be able to:

Planning Types and Macros: Objectives

z Create your own planning typez Outline the use of planning type infoz Generate your own macrosz Explain different ways to execute macros

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Planning Method

Stat. Forecast

MayMay

Master Data

Events

Allocations

InfoStructure

Mass ProcessingJob

Production Planning

Planning Functions

Planning Types

Planning Types and Macros: Course Overview

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z Management would like to store all planning data,both sales and production, in the same structure.

z Different departments would like to have differentviews of their relevant data.

z Additionaly, certain user groups should be allowedto display but not change certain key figures.

Planning Types and Macros: Business Scenario

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InfoStructure

Incoming orders qty.Incoming ordersInvoiced quantityInvoiced salesProduction qty.Stock levelTarget stock levelDays supplyTarget days supply

Incoming ord. qty.Incoming ordersInvoiced quantityInvoiced sales

SalesProduction qty.Stock levelTarget stock level

VersionA00

Version001

Planning type: SALES

Planning type: PRODUCTION

Planning Types

In Flexible planning, you can create your own customized planning screens. These are called planning types.

A planning type is a self-defined view on the planning data in an information structure. The number of planning types you can create for an information structure is not limited.

To create a planning type, select Tools -> Planning type/macro -> Create in Flexible planning or carry out the Customizing step Maintain planning types.

In level-by-level planning, you define each level of the planning type separately.

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The planning type determines which key figures are displayedin the planning table

The planning type determines which key figures are displayedin the planning table

You can create macros in the planning typeto calculate key figures

You can create macros in the planning typeto calculate key figures

Include actual datafrom Version 000in the planning table

Include actual datafrom Version 000in the planning table

The planning typedetermines the horizonand the time grid of planning

The planning typedetermines the horizonand the time grid of planningPlanning

Table:

Create a Planning Type 1

A planning type is a customized view on the planning table; for example, you might have one view for the sales planner and another view for the production planner. A planning type defines the content and layout of the lines in the planning table as well as the mathematical operations, in the form of macros, which can be performed on these lines.

A planning type is based on any information structure of your choice (either a standard information structure or a self-defined information structure). You therefore have almost infinite possibilities with regard to the information you can plan.

The actions you perform to create a planning type are as follows:

ycreating planning type info

yassigning a key figure to a line

ycreating lines in the planning table ydefining line attributes ydefining macros yusing special operators to define macros for stock balance, production, days supply, and historical

totals

ytranslating planning type, freely defined line, and macro texts

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Insert event linesInsert event lines

Define line type: output line planning line aggregation averaging

Define line type: output line planning line aggregation averaging

Define: drilling down performance extended selection

screen

Define: drilling down performance extended selection

screen

Planning typeInfo structure

Invoiced salesActual salesProport. EventCorrect. sales

Create a Planning Type 2

The aggregate planning indicator in the planning type info enables: yDrill down in the planning table yVariable time buckets ySaving of fixed values yPerformance enhancements

If you set the indicator the key figure values are aggregated by the database server and only the totals are transfered to the application server. If you do not set this indicator, the details are transferred to the application server, which aggregates them. The indicators for planning types, that you created in Release 3.0 or 3.1 are set automatically when you upgrade.

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Planning Planning typetype

Select key figures from info structureSelect key figures from info structure

- Order value- Confirmed quantity- Open order quantity - Open order value- Delivery quantity- Sales

Define additional linesDefine additional lines

- Event- Corrected sales- Actual data from previous year

MacroMacro Event/orig. sales * 100 = Deviation in %

+ - * / etc.

Planning tablePlanning table

- Consistent- Level-by-level- Delta

Orig. salesEventCorr. salesDeviation in %

Defining a Planning Table

A planning type typically contains a subset of the key figures in the underlying information structure.

You can also define further lines whose contents are obtained, for example, by the execution of macros.

You define macros in a planning type. A macro performs a mathematical operation on an existing field or fields, and returns a new calculated value. You can set up a macro such that it is automatically executed when the planner enters or leaves the planning screen, or when he presses Enter.

In a planning type, you can also insert lines for this years actual data, last years actual data, events, and external data.

To define which data is read into the external data line, you must use functional enhancement MCP20001 in a Customizing project (transaction CMOD).

You set attributes for each line in a planning type.

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Definemacros

Define Planning TypeDefine Planning TypeDefine Info StructureDefine Info Structure

Planning method

Planningunits

Setaggregation type

Define screen layout

Key figureparameters

Aggregation and Disaggregation:Determine by Aggregation Type

The aggregation type of a key figure specifies how that key figure is aggregated and disaggregated. You set the aggregation type in Customizing (either in Set planning parameters for info structures and key figures or in Maintain planning types).

There are three aggregation types:

yAn average is created yA total is calculated; disaggregation is carried out on the basis of the proportional factors yNo aggregation is carried out

The default aggregation type for planned key figures is "total calculated". The default aggregation type for a freely defined line is "no aggregation". For more information, see the IMG.

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SOPKAPA

SOPKAPAM

SOPDIS

Standard Planning Types

Standard SOP comes with three planning types: ySOPKAPA: the system uses this for the single-level planning of a product group ySOPKAPAM: the system uses this for the planning of an individual material ySOPDIS: the system uses this for dual-level planning of a product group

You can copy any one of these planning types and then modify it to suit your needs.

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DatabaseDatabaseserverserver

ApplicationApplicationserverserver

Aggregated

Detailed

Aggregate Planning

z Improved performancez Drill down functionality

Aggregate planning indicator You set this indicator in the planning type by choosing Maintain planning types in Customizing. Key figures in this planning type are then aggregated by the database server, and only these totals are transported to the application server. If you do not set this indicator, the details are transported to the application server, which then aggregates them. The indicators for planning types that you created in Release 3.0 or 3.1 are set automatically when you upgrade.

This indicator enables the following functionality: yImproved performance yDrill down functionality yFlexible time buckets yPermanent fixing

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3.0 Database ... W17 W18 W19 ...Display ... W17 W18 W19 ...

4.0 Database ... W17 W18.4 W18.5 W19 ...

Display ... W17 W18 W19 ...

or ... 04/97 05/97

z Data entry in different time buckets possiblez Aggregation and disaggregation based on predefined time

bucket grid

Variable Time Buckets

You can plan using more than one period indicator. For these indicators, you let the system generate a technical period that is saved in the form of a fiscal year variant. The planning method of the information structure must be consistent planning. The following example explains how to plan in weeks and months.

Example: Set the information structure parameters for this function in Set parameters of info structures and key figures as follows: 1) Press F4 on the Planning periods field. (The Storage periodicity field is not ready for input.) 2) In the planning periods box on the next screen, enter W and M in the PI column. 3) Enter a name for your technical fiscal year variant. This name should consist of two letters. 4) Enter a generation horizon. This horizon should encompass the planning horizon - both past and

future periods - that you wish to plan with this information structure. 5) Save these settings.

A technical fiscal year variant is automatically generated. You return to the Information Structure Parameters screen. The name of your technical fiscal year variant (see step 3) appears as the fiscal year variant. A G appears in the Planning periods field. This G stands for generated.

Define the sequence of the periods in the planning type info.

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Macros

z Record function: standard operatorsz Record function: special macros for production, stock

balance, days supply, and historical totalsz Create functionz Functional enhancement MCP20002 (macro "User...")

You define very simple macros with the Record function. Follow the instructions at the bottom of the screen.

You define more complicated macros with the Create function. To calculate production, stock balance, days supply, or a historical total, you can use one of the

special macros provided by SAP. To write your own, highly complex macro, use functional enhancement MCP20002 in a Customizing

project (transaction CMOD). The macro name must begin with the string USER.

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Operand 1(mandatory)

Operator Operand 2(optional)

Result

Key figuremember

Key figureowner

Key figureowner

DM

AM

Key figure = V

Key figuremember

Key figure

Key figureor

numericalvalue

+

*

/>

Mass processing -> Reorgan. forecast. This function allows you to delete forecast versions in either Flexible Planning or the material forecast.

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Qtr Qtr

01020304050607080

1st 2nd 3rdQtr

4thQtr

Corrected sales in $

Click and Drag Forecast Results

Interactive Business Graphic

You can monitor and modify both the historical data and the forecast results in an interactive business graphic.

If you correct the forecast results in the business graphic, you have the option of copying them into the planning table.

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0

1

2

3

4

5

6

7

8

Tolerance lane= ep V *1.25* MADep = ex-post forecast

z Background correction

z Manual identification and average calculation

today

Automatic Outlier Control

Automatic background correction of outliers in historical data To correct outliers automatically in the historical data on which the forecast is based, select Outliers

in the forecast profile. The system calculates a tolerance lane for the historical time series, based on the sigma factor. Historical data that lies outside the upper or lower band of this tolerance lane is corrected to the ex post forecast value.

The width of the tolerance lane for outlier control is defined by the sigma factor. The smaller the sigma factor, the greater the control. The default sigma factor is 1; this gives a remaining probability of 10% for data correction. SAP recommends that you set a sigma factor at between 0.6 and 2.

If you run the forecast online, historical data that has been automatically corrected by this function is indicated in column "C" of the Forecast: Historical Values dialog box.

Automatic correction of historical data online Alternatively, you can automatically correct historical data online, without having selected Outliers

in the forecast profile. To do this, select "C" for each historical value you want to correct and choose Correct. The system then calculates the average of all selected historical periods and displays it as the new corrected historical value.

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Average month defined as 20 workdays(forecast profile)

M1 M2 M3

Original 1900 2100 2300

Days 19 21 23

Corr. 2000 2000 2000M4 M5 M6

Uncorr. 2000 2000 2000

Days 22 20 18

Original 2200 2000 1800

HistoryHistory

ForecastForecast

Workdays Correction

Average number of days per forecast period yYou can base the forecast on an average number of days per forecast period. For example, if your

forecast period is "month," you can run the forecast on the assumption that the number of workdays in each month is 20 by entering "20" in the No. days field of the forecast profile (see above). The system then corrects the forecast data based on the actual number of workdays in the period. The actual number of workdays in the period is defined in the factory calendar.

Forecast periods yThe period indicator on which you base the forecast can be different than the storage periodicity.

You set the storage periodicity in Customizing by choosing Set parameters of info structures and key figures. You enter the forecast period in the Period ind. field of the forecast profile

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Statistical Forecast: Unit Summary

z Carry out a forecastz Outline the use of forecast profilesz Store and load forecast versionsz Base the forecast on the number of workdays in

a period

You are now able to:

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Exercises

Unit: Statistical Forecast

Carry out the forecast Outline the use of forecast profiles Store and load forecast versions

Management wants to create a sales plan based on the historical data for the invoiced quantity. They also want to see the difference between calculating the forecast at the aggregate and disaggregate levels.

1-1 Create a sales plan in the active version A00 for division 04 for the next 12 months using the forecast tool. Base this plan on historical values, specifically, sales forecast qty. for the past 12 months. Let the system automatically determine the model selection. As you perform this task, answer the following questions. 1-1-1 What are the two options for specifying the forecast and historical date

ranges?

1-1-2 List three of the seven options for model selection when running your forecast.

1-1-3 Change at least one of the historical values before executing the forecast.

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1-1-4 What are the three methods for correcting historical outlier values? Two of these methods are explained in the on-line help for the Correct Outlier Indicator on the Forecast: Historical Values screen.

1-1-5 Run different forecast models and write down the results like basic value, trend value, MAD and error total for the different models.

1-1-6 Save your plan. Enter again and evalute your forecast version. The forecast version contains all historical date, all parameters you have

used for the last forecast and the last result.

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Solutions

Unit: Statistical Forecast

1-1 Create a sales plan in the active version A00 for division 04 for the next 12 months using the forecast tool. Base this plan on historical values, specifically, sales forecast qty. for the past 12 months. Let the system automatically determine the model selection. As you perform this task, answer the following questions. Note: If you are following the solutions, you can complete the steps and then return to step 6 to answer the questions. From the Flexible Planning menu: 1. Planning o Change 2. Enter your groups planning type ZS6##-Sales. 3. Enter sales organization 1000, division 04. 4. Select the active version. 5. Place your cursor on the Sales Forecast Qty field in the planning table. 6. Edit o Forecast 7. Confirm the period intervals for the forecast and the historical data (you may

have to change the interval for the historical data). Also confirm you are using automatic model selection.

8. To manipulate historical data, select [Historical]. 9. To perform the forecast, select [Forecasting]. 10. Accept the parameters that are displayed on the Parameters for Automatic

Selection window, select [Forecasting]. 11. Scroll through the Results window. Feel free to manually change any forecast

values. 12. Press enter to copy the results into the planning table.

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1-1-1 What are the two options for specifying the forecast and historical date ranges? 1. Use period intervals. Enter the exact periods for the forecast and the

historical data. For example, the forecast period range can be entered as 04.98 to 04.99. The historical period range can be entered as 03.97 to03.98.

2. Use number of periods. Enter the number of forecast periods and historical periods. For example, enter 12 for the number of forecast periods and 12 for the number of historical periods.

1-1-2 List three of the seven options for model selection when running your forecast. The seven models are: Constant Seasonal Trend Seasonal Trend Automatic Selection (the system determines the appropriate model) Historical Weighting

1-1-3 Change at least one of the historical values before executing the forecast. There are three options for changing the historical values, all from within the Forecast: Model Selection window, all of which are accessed by pressing the [Historical] button from the Forecast: Model Selection window: 1. Manually type over the existing values. 2. Use the interactive graphics to click and drag each bar to its correct

value. Copy these results back to the table. 3. Select the periods to correct by checking the C column. Then press

the [Correct] button. This will replace the selected periods with the average value.

1-1-4 What are the three methods for correcting historical outlier values? Two of these methods are explained in the on-line help for the Correct Outlier Indicator on the Forecast: Historical Values screen. 1. Manually correct the values either by changing them in the Corr.

Value column of the Forecast: Historical Values screen or using the interactive graphics.

2. Select the values to correct by placing a check in the C column and pressing the [Correct] button. This will calculate the average of the corrected historical values and will replace selected values with this value.

3. Select Outliers in the forecast profile and enter the Sigma factor for outlier control. Run your forecast using this forecast profile.

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1-1-5 Run different forecast models and write down the results like basic value, trend value, MAD and error total for the different models.

1-1-6 Save your plan. Enter again and evalute your forecast version. The forecast version contains all historical date, all parameters you have

used for the last forecast and the last result.

1. Planning o Change 2. Enter your groups planning type ZS6##-Sales. 3. Enter sales organization 1000, division 04. 4. Select the active version. 5. Place your cursor on the Sales Forecast Qty field in the planning

table. 6. Edit o Forecast o Version

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Events

z Defining an eventz Assigning an eventz Displaying an event

Contents:

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On completing this unit, you will be able to:

Events: Unit Objectives

z Outline the role of events in SOPz Create and use eventsz Analyze the result in the planning table

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Planning Method

Stat. Forecast

MayMay

Master Data

Events

Allocations

InfoStructure

Mass ProcessingJob

Production Planning

Planning Functions

Planning Types

Events: Course Overview

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Events: Business Scenario

z Your marketing department has decided to run anpromotion on your light bulbs. They estimate thatsales quantity (invoiced quantity) will increase by25% for the first month and 40% for the secondmonth the promotion will run. The promotion willstart on the first of the month after next (yoursecond planned month).

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W07/97

W08/97

W09/97

W10/97

W11/97

Time

Corrected Planned Sales

Original Planned Sales

Period W 1 W 2 W 3 W 5

+10%

Corrected planned sales 110 120 110 95 100

+20% +10% -5%

W 4

Proportional event

Normal planned sales 100 100 100 100 100

100 %

%Start of event

Events

Events allow you to predict the impact of one-time events that cannot be deduced from historical data. Examples of events include: yPrice changes such as promotions

ySpecial deals with major customers and vendors yCompetitor sales activities yManagement overrides yFacts based on market intelligence

You define an event either as a series of percentage changes ("proportional" events) or as one or more whole numbers ("cumulative" events). In the above example, the event has been defined as a percentage.

The impact of the event is shown in the corrected key figure values of the planning table.

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AssignmentEvent list

Material 1 .

.

Material 5Easter promotionMid-season sales .

.

Special contractsMaterial 5 .

.

Material 20

Characteristics

Key figure

Info structure

Planning versions

Start date1999

Events: Assignment to Information Objects

In addition to the amount of the change, an event contains the following information objects: yPeriod unit (day, week, month, or other period) yDate on which the event is to start

yCharacteristic values combination (e.g. sales organization and sales district) yKey figure (e.g. invoiced sales value) yPlanning version

This information determines how the event is displayed in the planning table. The period unit of the event does not have to be the same as the period unit of the information

structure. The system assigns the event values to the correct periods in the planning table automatically

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Insert eventlines

Planning typeInfo structure

Invoiced salesActual sales

Proport. EventCorrect. sales

Cumulative Event

Planning type

Events: Display in the Planning Table

In order to view an event in the planning table, you must first assign it to a planning type and then plan that planning type.

Cumulative event data is disaggregated to the detailed level using the constant proportional factors, not on the basis of current planning data.

Proportional events are displayed at the detailed level only. The data on event lines is calculated and displayed automatically in the planning table at runtime. It

is not saved on the database when you save the planning version.

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Events: Unit Summary

z Outline the role of events in SOPz Create and use eventsz Analyze the result in the planning table

You are now able to:

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Exercises

Unit: Events Topic: Defining, Assigning, and Displaying Events

Outline the role of events in SOP Create and use events in a planning type

Your marketing department has decided to run a promotion on your light bulbs. They estimate that sales quantity (invoiced quantity) will increase by 25% for the first month and 40% for the second month the promotion will run. The promotion will start on the first of the month after next (your second planned month).

1-1 Create an event PROMOTION## based on the above business scenario. You will use the following parameters:

Create a monthly, proportional event. It will effect the key figure invoiced quantity. It will effect the active version.

The promotion will start on the first day of your second planning month. Your event will be assigned to sales organization 1000 and division 04.

1-2 Add the event key figures to your planning type ZSALES-##. Store the corrected forecast in key figure sales.

1-3 Review your plan using your planning type ZSALES-## and the active version. Look specifically for sales organization 1000 and division 04. Change the key figure sales forecast qty in all periods by adding for example a very small number. Save your plan and enter it again to see the correction due to your event.

Using aggregate planning the corrected invoiced quantity is only calculated when you save your plan. Only changed quantities are calculated.

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Solutions

Unit: Events Topic: Defining, Assigning, and Displaying Events

1-1 Create an event PROMOTION## based on the above business scenario. You will use the following parameters:

Create a monthly, proportional event.

It will effect the key figure invoiced quantity. It will effect the active version.

The promotion will start on the first day of your second planning month. Your event will be assigned to sales organization 1000 and division 04. From the Flexible Planning menu Tools o Event o Create Enter your new event PROMOTION##. Press the green check. Enter a description and select proportional and event length month. Press Enter. Change the 100% to 125% in the first month and 140% in the second month. Goto o Create Assignment, or select [Assignment] Enter your info structure S6##. Press Select sales organization 1000, division 04, key figure invoiced quantity, your active version and for the assignment date the first day of your second planning month. Press Flag assignment. Select list of assignments to check which characteristics combinations were assigned. Save the event.

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1-2 Add the event key figures to your planning type ZSALES-##. Store the corrected forecast in key figure sales. From the Flexible Planning menu Tools o Planning type/macro o Change Enter your planning type ZS6##-Sales Place the cursor on sales forecast qty and select [event remark]. Select key figure sales and press Enter. Save your planning type.

1-3 Review your plan using your planning type ZSALES-## and the active version. Look specifically for sales organization 1000 and division 04. Change the key figure sales forecast qty in all periods by adding for example a very small number. Save your plan and enter it again to see the correction due to your event. From the Flexible Planning menu Planning o Change Enter your planning type ZS6##-Sales Enter sales organization 1000, division 04 and select the forecast version you assigned in the event. Change Sales Forecast Qty using the distribution function and add 0.000001 to each column. Save your plan. Enter the plan again and check the result.

Using aggregate planning the corrected invoiced quantity is only calculated when you save your plan. Only changed quantities are calculated.

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Production Planning

z Production macrosz Rough-Cut planning profilesz Work center hierarchiesz Resource leveling for capacity, cost and materials in

the planning tablez Customizing settings

Contents:

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On completing this unit, you will be able to:

Production Planning: Unit Objectives

z Create a production planz Explain the use of rough-cut profilesz Outline the use of work center hierarchies for

different planning levelsz Explain the Customizing settings for rough-cut

planning

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Planning Method

Stat. Forecast

MayMay

Master Data

Events

Allocations

InfoStructure

Mass ProcessingJob

Production Planning

Planning Functions

Planning Types

Production Planning: Course Overview

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Production Planning: Business Scenario

z Once the sales reps are comfortable with theirsales forecast, your planners must create aproduction plan, based on the sales forecast.Management would like a PRODUCTION view ofthis data that your planners can work with. Thisproduction plan will be adjusted according to thecapacity of a bottleneck work center and will bepassed to demand management.

z Before you can create a production plan, you needto create a planning type that includes macrossuch as stock balance and target days supply.

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W29/99 W30/99 M08/99 M09/99Sales 50 70 220 250Production 50 70 220 250

W29/99 W30/99 M08/99 M09/99Sales 50 70 220 250Production 60 70 250 250Target stock level 10 10 40 40

W29/99 W30/99 M08/99 M09/99Sales 50 70 220 250Production 80 40 330 265Target days supply 3 0 11 11

Synchronous to salesSynchronous to sales

Target stock levelTarget stock level

Target days supplyTarget days supply

Production Macros in Standard SOP

There are four strategies in Standard SOP for automatically generating a production plan: yProduction quantities are the same as sales quantities in each period ("synchronous to sales") yProduction quantities are such that target stock levels are reached yProduction quantities are such that target days supplies are reached yProduction quantities are such that the stock level at the end of each period is zero.

You can also enter production quantities manually. Stock levels and days supplies are calculated and displayed automatically whenever you regenerate

the planning screen.

Opening stock levels are taken into account.

To set opening stock levels manually in Standard SOP, choose Goto -> Opening stock level.

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Operator

LOL1L2L3L4PRRWZS

Description

Stock balanceTarget stock receiptsReceiptsIssuesTarget stock / issuesTarget supply / productionDays supplyHistorical total

Special Macro Operations

The R/3 System comes with eight special operators with which you can calculate production, stock balance, days supply, or a historical total.

Each of these operators is based on an internally defined formula. For detailed information on these formulas, see the Extended Help.

To define a macro with one of these operators, select Macro -> Record and then the pushbutton Special operation. All you need to do is specify which lines in the planning type are to represent which operands in the macro. For example, you might define the sales line as goods issues and the production line as good receipts.

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Raw material 13

Work center group WCG 12

Work center group WCG 19

Costs

Week 1

Duration

Week 2 Week 3

2

10

2

4

20

3

4

20

Pallet

Day

Day

USD

2

ResourceUnit

Rough-Cut Planning Profiles

You use rough-cut planning profiles to plan critical resources. These might be: yBottleneck work center

yMaterial capacities

yCosts of goods transportation or a marketing campaign The following resource types are supported: yWork center capacities

yMaterials

yProduction resources/tools yCosts

Rough-cut planning profiles can also give you an aggregate (summarized) picture of resources: i.e. yWorkdays (rather than hours or minutes) yWork center groups and product groups (rather than individual work centers or products)

An aggregate view of resource loads is particularly desirable for medium- and long-term planning. The base quantity is the number of units for which the resource is required. You cannot change the

base quantity once you have saved the rough-cut planning profile. Different lot size ranges may have different base quantities.

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A

A BCD

Planned quantity

xTime per piece

=Capacityrequirements

Work center Labor

=Availablecapacity

Determination of Capacity Load

Resource leveling is carried out with reference to a plant. If your information structure does not contain the characteristic "plant" or if no plant is uniquely identifiable from the characteristic values defined in your rough-cut planning profile, you need to set a planning plant in Customizing for Sales & Operations Planning (in Set parameters for info structures and key figures and Set planning plant for SOP).

What to maintain in the rough-cut profile:

ythe time span of one planning period in the resources table, expressed in days ythe status of the rough-cut planning profile (as in a routing) ythe usage of the rough-cut planning profile (as in a routing) ythe lot size range for which the profile is valid ythe key figure causing the resource load (if the rough-cut planning profile is defined for an

information structure) You define the determination of capacity load in the rough-cut planning profile. The available

capacity is read from the bottleneck work center defined in the recource table of the rough-cut profile. The ca