lo935 - flexible planning

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LO935 Flexible Planning

LO935

Release 640 04/06/2006


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SAP AG 2001

LO935 Flexible Planning

LO935LO935

Flexible PlanningFlexible Planning SAP AG

R/3 System

Release 4.6C

Mai 2001

Material number 50047186


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SAP AG 2004

Copyright 2004 SAP AG. All rights reserved.

No part of this pub lication may be reproduced or transmitted inany form or for any purpose without the express permission ofSAP AG. The information contained herein may be changedwithout prior notice.

Copyright

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Group products and services are those that are set forth in the express warranty statements accompanying such

products and services, if any. Nothing herein should be construed as constituting an additional warranty.


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SAP AG 1999

Information Systems

Processes in Salesand Distribution

LO150 5 days

Logistics 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 Planning

LO935 2 days


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Prerequisites

Essential:Knowledge of content of LO930 - Logistics InformationSystem (LIS) Reporting

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


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Target group

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 courseinstructor's explanations. On the sheets, there is space for you to write down additional

information.


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Course Overview

Course Goals

Course Objectives

Course Content

Course Overview Diagram

Main Business Scenario

Contents:


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This course will enable you to:

Plan based on information structures Use the planning tools in the LIS system

Summarize the uses of the planning methods anddif ferences between them

Maintain master data for various planning methods

Course Goals


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On completing th is course, you will be able to:

Outline the differences between Standard SOP andFlexible Planning

Create sales and production plans

Use the forecast too l

Create planning types, macros and events

Perform resource planning and rough-cut capacityanalysis

Use mass processing

Transfer planning resul ts to Demand Management

Course Objectives


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Unit 7 Events

Unit 8 Production Planning

Unit 9 Mass Processing

Unit 10 Al locations

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

Al locations

InfoStructure

Mass Processing

Job

PlanningFunctions

Planning Types


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You are a member of your companys planningimplementation team. You must define your info

structure, that means your planning levels(characteristi cs) and key figures you want to plan.

Business Scenario


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Quantities and dates...

Order and rate proposals BOM explosion

Scheduling at workcenters

Production controlledby run scheduleheaders

Production ordercontrol

MPS/MRPMPS/MRP

RepetitiveManufacturingRepetitiveManufacturing

SFCSFC

Statement ofdemand

SKUs/configurable m aterials

Demand

Management

Demand

Management...

Sales organizationDivisionSold-to partyMaterial

Plant

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 that you can use to set

sales, production, and other supply chain and logistics targets. SOP uses historical, existing, and

estimated future data to perform planning calculations. You would generally use SOP for medium- to

long-term planning. You can also perform resource planning to determine the amounts of the work

center capacities and other resources required to meet these targets. SOP supports both high-level

planning of complex planning hierarchies and detailed planning of finished products, allowing for eithera top-down or a bottom-up approach to planning.

SAP based the architecture of the logistics planning system 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 based on historical data, as well as market intelligence and

anticipated trends and changes at your company. You can also perform aggregate sales planning. With

SOP, you can keep sales plans 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.

You can also plan complex products, manufactured in a large number of variants. In purchasing, you can use SOP to plan quotas for multiple sources of supply or to track 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 organizationMaterialPlant

Others

Incoming ordersInvoiced salesOthers

DayWeekMonthFiscal year variantFlexible time buckets

X

A00 Act ive000 Actual data001 Forecast based on trend model002 Sales incl . market intell igenceOthers

A00 Act ive000 Actual data001 Forecast based on trend model

002 Sales incl. market intell igenceOthers

Info Structure Definition

Sales & Operations Planning uses the same data infrastructure as the logistics information systems (for

example, the Sales Information System). In other words, the system stores planning data, as well as

actual data in information structures.

An information structure holds three different types of information:

Characteristics are criteria that the system uses to perform data reduction, and includes items such assales organization, distribution channel, customer, material, and plant.

Periods are time units that give the information structures a time reference. The system displays andstores planning data per storage periodicity. This is not necessarily the same as the update period ofthe information structure.

Key figures are values of particular business interest, for example, incoming sales and productionquantities. 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 offi ceMaterial

(Product groupings or materials)

North America

Flexib le 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 structure illustrated in the graphic as the sales forecast hierarchy (SFH).


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Multiple options for

customized configuration

Planning hierarchies

Consistent, level-by-level,or delta planning

Content and l ayout ofthe planning table isuser-defined

Flexible Planning

Largely preconfigured

Product groups

Level-by-level p lanning

Standard planning table

Standard SOP

Flexib le Planning vs. Standard SOP

Sales & Operations Planning consists of two elements: flexible planning and standard SOP.

The graphic shows you the differences.

To access flexible planning, select LogisticsLogistics Controlling Flexible planning.

To access standard SOP, select Logistics ProductionSOP.

You can copy the planning table of standard SOP and modify it to suit your company's needs.


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Rules

Aut omatic

Periodic

Flexible

Update

S001

S730

Copy datafrom oneinfo structureto another

Info structures

S140

Use of Copy Management in Planning

You use Copy Management as 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. The primary benefit is the reduction in the operating system load that results

from the decrease in the number of info structures the system must update. (You can also supply plannedinformation 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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Addi tionalInformation

Material master

Customer master

Documents

.

.

.

Sales organization: USSales office: US North

CustomerIncomingorders

Jones, Inc.Smith, Inc.

25,00035,000

20,00030,000

Sales organization: US

Sales officeIncomingorders

Invoicedsales

60,000

40,000

50,000

40,000

Anal ysis of S730

Incomingorders

Invoicedsales

100,000 90,000Drill downto salesoffices

Salesorganization

US

Drilldown tocustomers

US North

US South

Invoicedsales

Standard Analyses: Reporting Techniques

You can run a standard analysis for any planning version based on consistent planning. Select

EnvironmentReporting.

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

Ordervalue

No.orders

Cumulative Curve

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

Invoiced sales

Planned/ActualComparisons

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 OrdersOrders NoNo..ordersorders

BaxterBaxter 5000 3000 1005000 3000 100TaylorTaylor 9000 15000 30009000 15000 3000CrowthCrowth 6000 9500 7506000 9500 750

Standard Analyses: Analytical Techniques

You can use a wide range of functions to examine the underlying key figures and characteristic values of

an analysis from a business perspective. All the functions for statistical analyses present information in

easy-to-use graphics.


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Sales & Operations Planning (SOP) is the planningtool o f the Logistics Information System.

SOP can be used to plan sales, production, andother supply chain and logistics activities.

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

Sales & Operations Planning is made up of twoelements: Flexible planning and s tandard SOP.

Introduct ion: Summary


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Planning Methods

Uses of the planning methods

Consistent p lanning

Level-by-level planning

Contents:


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On completing this uni t, you wil l be able to:

Planning Methods: Unit Objectives

Explain the differences between the planningmethods

Outline the features and benefits of eachplanning method

Maintain Customizing for Flexible Planning

Summarize performance enhancements


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Course Overview

Planning Method

Stat. Forecast

MayMay

Master Data

PlanningFunctions

Planning Types

Events

Al locations

InfoStructure

Mass Processing

Job

Production Planning


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Planning Methods: Business Scenario

You are a member of your companys planningimplementation team. You have already created the

info structu re for the new SOP planning initiative.Now you must decide which planning method willmeet your companys requirements best.


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Level-by-level Top-down

Consistent Bottom-up& top-down

Planning Methods

Sales & Operations Planning (SOP) supports both top-down and bottom-up planning.

The different planning methods support these two approaches in different ways by. 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 the original data using

Copy Management.


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Material AM001 is selected from planning hierarchy

Autom atic disaggregation

Reg ion Mater ial Pl an t Pl an ned q ty Pr op or ti on

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

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

You enter an order quantit yof 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 system uses proportional factors to determine the value of the total in relation to the details.

Similarly, the system also determines the value of one detail in relation to another detail using the

proportional factors. For more information on the proportional factors, see the Master Data unit.

In the example in the graphic, the system uses proportional factors to perform disaggregation.


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Region Material Plant Order quantity

New Jersey AM001 0001 600New Jersey AM002 0001 100New Jer sey A M003 0001 150New Jersey AM004 0001 50

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

Region Material Plant Order quantity

New Jersey AM001 0001 1200New Jersey AM002 0001 100New Jer sey A M003 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.

The system aggregates data dynamically when you call the planning table.

In the example in the graphic, a planner has selected material AM001 is selected. He or she is planning

the order quantities of this material in all regions and plants. The planner changes the total order quantity

from 1000 to 2000 units. The system performs disaggregation automatically based on previously planneddata.


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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 example in the graphic shows two possible views: the central planning of all light bulbs in the US

and the decentralized planning of standard-sized light bulbs 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 atruntime.

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

Distri bution ch annel

Material

Order quantity stored

10 pc 20 pc 5 pc 30 pc

Order quantity visib le

10 pc 20 pc 5 pc 30 pc

30 pc 35 pc

65 pc

Key figure

Save Consistent Planning

In consistent planning, the system stores data at the detailed level. If you enter the planning table at

aggregate level, the system aggregates the key figure values.

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 ch annel

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 quanti ties are changed from 30 pc and20 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. The system

stores data separately at each planned level.

You have a hierarchical view of the data in the planning table.

The system does not perform automatic aggregation or disaggregation. Plans at different levels are not

necessarily consistent.

In level-by-level planning, the system does not automatically fed changes you make at one level to other

levels. It is possible to impose data consistency across several planning levels. To disaggregate data, you must

use the Edit Disaggregate line function in the planning table. The system then bases disaggregation

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 Planning

Planned values saved at detailed level only.

Entire planning hierarchy can be planned in

one transaction (no characteristic valuesselection).

Planning table can be called with gaps in listof 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 anddetailed 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 member

levels 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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Function

Autom atic aggregat ion

Autom atic d isaggregationbased on factors saved indatabase

Autom atic time-d ependen tdisaggregation based onprevious planning data

Create planning hierarchy

Planning types/macros

Set opening stockautomatically in background

Forecast

Events

Resource leveling

Background processing

Fix key figure values in theplanning table

Long texts for versions andperiods in the planning table

Standard analysis for info structureTransfer to Demand Management

Consistent

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

YesYes

Level-By-Level

No

No

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

NoYes

Comparison of the Different Planning Methods


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Key figure

parameters

Planning

method

Field catalogs:characteristics

Field catalogs:

key figuresDefine

informationstructure

Definemacros

Define planning typeDefine planning type

Define screenlayout

Planning

units

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 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: currency unitperiod 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

No user exits

No zero column usage

No event usage

Do not save to fo recast DB

Planning object check off

Key-figure-restricted DB update off

ALE permit ted

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. The following

explains two of them. 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 actualdata 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 you are planning for

this information structure.

Key figure restricted DB update off

You can improve performance if you set this indicator. However, the system cannot save two planning

types of an information structure simultaneously because it reads all the key figures in the information

structure when it saves a planning type based on the information structure.

If you do not set this indicator, the system automatically locks and saves only those key figures

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

Explain the differences between the planningmethods

Outline the features and benefits of eachplanning method

Maintain Customizing for Flexible Planning

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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Planning Methods 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 toyour 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 haveat 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 aninfo structure?

The information message The table is client-independentadvises you

that each change you make will have an effect on all other clients in

the system. PressEnter to continue.

______________________________________________________

______________________________________________________


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Planning Methods 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 leastthe 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 aninfo structure?

The information message The table is client-independentadvises you

that each change you make will have an effect on all other clients inthe system. PressEnter to continue.

Tools AcceleratedSAP Customizing Edit Project SAP ReferenceIMG

Logistics - General Logistics Information System (LIS) Planning

Master data Set parameters for info structures and key figuresOr

Production Sales and Operations Planning (SOP) Master data Setparameters 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

Planning hierarchy

Product group

Proportional factors

Version management

Contents:


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Master Data: Unit Objectives

Name the di fferences between master data forFlexible Planning and Standard SOP

Explain how to create master data

Outline the role of the proport ional factors


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Master Data: Course Overview

Planning Method

Stat. Forecast

MayMay

Master Data

Events

Al locations

InfoStructure

Mass Processing

Job

Production Planning

PlanningFunctions

Planning Types


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Master Data: Business Scenario

Your company buil ds its forecast based on thehistory of invoiced quantity for the same quarter of

the 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

Sales

organization

Sales offi ce

Customer

Material

USA

Europe

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, choose Master dataPlanning hierarchyCreate from theFlexible 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 v alue 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 M9Data is filteredusing method

USA South Dal. M16 xxUSA South Dal. M17

x

x

Automat ic Creat ion o f a Planning Hierarchy

You can create a planning hierarchy automatically based on actual data (version 000) or existing planned

data (versions A00-999).

To create a planning hierarchy automatically based on actual data, choose Master dataGenerate

master data.

It is often not necessary, or even desirable, to plan all products sold to all customers, including materials

rarely sold. SAP offers you two ways to filter out characteristic value combinations (that is, 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 met. 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 the system would find 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.

You can calculate constant proportional factors for consistent planning one of two ways:

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, choose Master

dataCalculate proportionsUsing 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, choose Master dataCalculate proportionsUsing 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, the system bases subsequent disaggregation 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 choose 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

Proport ional 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. The planning method determines whether or not this happens

automatically (see the Planning Methods Unit).

In level-by-level planning, the system performs disaggregation based on the proportional factors

between adjacent planning levels. This applies both to Standard SOP and to information structures in

Flexible Planning for which you have defined level-by-level planning. 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:

Create them for a single level in the planning hierarchy or product group with EditCalculateproportions or

Create them for multiple levels of the planning hierarchy or product group with Master data Calculate proportionsUsing actual data or Product groupCalculate 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.

A product group can consist of either additional 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 conversionfactor (if the unit of the member is different than the owner unit), and an aggregation factor.

You can perform cross-plant planning.

You can perform planning out at the 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 Ver sion

000Actual Data

001Simulation 1

002Simulation 2

UpdatingDemand Mgt .

Copy

Version Management


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Master DataExercises

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. Yourinfo 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 Plant1200

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 QtyMaterial L-40C 40 Watt Clear Light bulbs




Sales Forecast Qty


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Sales Organization 1000 Germany Frankfurt Division 04 Lighting,Customer 1175 Elektromarkt Bamby Plant1200

Material L-60C 60 Watt Clear Light bulbs



Last Years Invoiced Qty 1000 1100 1200 1300 1400Sales Forecast Qty





Sales Forecast Qty





Sales Forecast Qty

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

1

0.2.13

0.2.14

0.2.10

0.2.11

0.2.7

0.2.8

0.2.50.2.2

0.2.3

0.2.27

0.2.28

0.2.24

0.2.25

0.2.21

0.2.22

0.2.190.2.16

0.2.17

Formatted: Bullets and Numb










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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 thecharacteristics blank.

A message will be displayed about the proportional factors. Because

we are not entering proportional factors, selectAll maintnceto

bypass this message.

Dont forget to enter the data for both Sold-to Parties.

Leave all the aggregation and proportion factors blank for now, because wewill 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?

_________________________________________________________

_________________________________________________________

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 current 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 automaticallycreated 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 zero calculated for sold-to partner 1000?

_________________________________________________________

_________________________________________________________


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Master DataSolutions

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. Yourinfo 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 Plant1200



Last Years Invoiced Sales 10000 11000 12000 13000 14000Last Years Invoiced Qty 1000 1100 1200 1300 1400

Sales Forecast Qty





Sales Forecast Qty

Sales Organization 1000 Germany Frankfurt Division 04 Lighting,Customer 1175 Elektromarkt Bamby Plant1200

Material L-60C 60 Watt Clear Light bulbsMonth+1 Month+2 Month+3 Month+4 Month+5



Sales Forecast Qty





Sales Forecast Qty





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Sales Forecast Qty

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 thecharacteristics blank.

A message will be displayed about the proportional factors. Becausewe are not entering proportional factors, selectAll maintnceto

bypass this message.

Dont 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.

Sales Org

1000

Material

L-80F

Material

L-40C

Material

L-80F

Material

L-40C

Sold-to Party

1175

Division

04

Sold-to Party

1000

Material

L-60C

Plant

1200

Plant

1200

Plant

1200

Plant

1200

Plant

1200














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Logistics Logistics controlling Flexible planning Master data

Planning hierarchy Create

Enter your info structure S630 + ##. Click the green check button twice.

On the Create Planning Hierarchy screen, enter sales organization 1000.

Choose [Next level]. Enter division 04.

Choose [Next level]. Enter Sold-to 1000 and 1175.

Choose [Next level].

Continue entering data using the input sheet above. When you are

finished, choose [Save].

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

Logistics Logistics controlling Flexible planning Master data

Planning hierarchy Create

1-1-4 Display the hierarchy graphic for your planning hierarchy thus far. How many

boxes (nodes) does it have?

Planning hierarchy Graphics

Enter Info Structure S-##, choose Enter.

Leave the characteristics blank.

The number of nodes is 14 + 1 for the planning hierarchy S##.

1-2 You have decided entering the planning hierarchy is a tedious task. Since you forecastbased on your history of invoiced quantity, automatically build your planning hierarchy

based on the last 12 month (including the current month).

When you perform this function for the first time, select the simulation indicator. Forthe second run, turn off the simulation indicator.

From the Flexible Planning menu:

Master data 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


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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 zero 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

Planning types

Include actual data

Performance enhancements

Drill down functionality

Variable time buckets

Macros

Contents:


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Planning Types and Macros: Objectives

Create your own planning type

Outline the use of planning type info

Create your own macros

Explain different ways to execute macros


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Planning Method

Stat. Forecast

MayMay

Master Data

Events

Al locations

InfoStructure

Mass Processing

Job

Production Planning

PlanningFunctions

Planning Types

Planning Types and Macros: Course Overview


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Management would l ike to sto re all planning data,both sales and production, in the same structure.

Different departments would l ike to have differentviews of their relevant data.

Addit ionaly, 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 sto ck levelDays supplyTarget days supply

Incoming ord. qty.Incoming orders

Invoiced quantity

Invoiced sales

Sales

Production qty.

Stock level

Target stock level

VersionA00

Version001

Planning type: SALES

Planning type: PRODUCTION

Planning Types

In Flexible planning, you can create your own customized planning screens, referred to as planning

types.

A planning type is a self-defined view on the planning data in an information structure. You can create

as many planning types as you need for an information structure.

To create a planning type, choose ToolsPlanning 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 typedetermines whichkey figures are displayedin the planning table

The planning typedetermines whichkey figures are displayed

in the planning table

You can create macrosin the planning typeto calculate key figures

You can create macrosin 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

planning

Planning

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 the system can perform 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 unlimited possibilities with

regard to the information you can plan. The actions you perform to create a planning type are:

Creating planning type info Assigning a key figure to a line Creating lines in the planning table Defining line attributes Defining macros Using special operators to define macros for stock balance, production, days' supply, and historical

totals

Translating 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 selectionscreen

Planning type

Info structure

Invoiced sales

Actua l sal es

Proport. Event

Correct. sales

Create a Planning Type 2

The aggregate planning indicator in the planning type info enables:

Drilldown in the planning table Variable time buckets Saving of fixed values Performance enhancements

If you set the indicator, the system aggregates the key figure values by the database server, and transfers

only the totals to the application server. If you do not set this indicator, the system transfers the details tothe application server, which aggregates them. The system automatically sets the indicators for planning

types that you created in Release 3.0 or 3.1 when you upgrade.


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PlanningPlanningtypetype

Select key fi guresfrom info structure

Select key fi guresfrom info structure

- Order value

- Confirmed quantity- Open order quantity

- Open order value

- Delivery quantity

- Sales

Define additional

lines

Define additional

lines

- Event

- Corrected sales

- Actual datafrom previous year

MacroMacro

Event/orig. sales * 100

= Deviation in %

+ - * / etc.

Planning t ablePlanning table

- Consistent

- Level-by-level

- Delta

Orig. sales

Event

Corr. sales

Deviation i n %

Defining a Planning Table

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

You can also define additional lines whose contents the system obtains, 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 so that the system automatically

executes it 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 year's actual data, last year's actual data, events, andexternal data.

To define which data the system reads into the external data line, you must use the MCP20001

functional enhancement 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

Planningmethod

Planningunits

Setaggregation type

Define screenlayout

Key figureparameters

Aggregation and Disaggregation:Determine by Aggregation Type

The aggregation type of a key figure specifies how the system aggregates and disaggregates that key

figure. You set the aggregation type in Customizing (either in Set planning parameters for info structures

and key figures or in Maintain planning types).

The three aggregation types are:

The system calculates an average The system calculates a total; the system performs disaggregation based on the proportional factors

The system does not perform any aggregation Total calculated is the default aggregation type for planned key figures. 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:

SOPKAPA: the system uses this for the single-level planning of a product group SOPKAPAM: the system uses this for the planning of an individual material SOPDIS: 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

Appli cat ionAppli cat ionserverserver

Aggregat ed

Detailed

Aggregate Plann ing

Improved performance

Drill down functionality

Aggregate planning indicator

You set this indicator in the planning type by selecting Maintain planning types in Customizing. The

database server aggregates key figures in this planning type, and it transports only these totals to the

application server. If you do not set this indicator, the database server transports details to the application

server, which then aggregates them. The system automatically sets the indicators for planning types that

you created in Release 3.0 or 3.1 when you upgrade.

This indicator enables the following: Improved performance Drill down functionality Flexible time buckets Permanent fixing


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3.0 Database ... W17 W18 W19 ...

Disp lay ... W17 W18 W19 ...

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

Display ... W17 W18 W19 ...

or ... 04/97 05/97

Data entry in d ifferent time buckets possible

Aggregat ion and d isaggregation based on predefined timebucket 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 it saves as a fiscal year variant. You must set the planning method of the

information structure to 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. The system automatically generates a technical fiscal year variant. 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

Record function: standard operators

Record function: special macros for production, stockbalance, days' supply, and historical totals

Create function

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 figureornumerical

value

+

*

/

>