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Planning with Characteristics-Based Forecasting

Objective

After completing this lesson, you will be able to use Planning with Characteristics based forecasting.

Basics of Planning in Variant Configuration

This figure explains the Data Warehouse Concept with: Online Analytical Processing, Data Warehouse, and Online Transaction Processing.

The idea of the Logistics Data Warehouse with Logistics Information System and Sales and Distribution Information originates from ERP, but is still active here.

This figure shows the Logistics Data Warehouse and the relevant Info Structures of Variant Configuration: S126, S137 and S138. The info structures are transparent, have aggregation criteria and do a performance control. Various info structures are available in the standard system. It's an easy to use tool to create info structures.

The following video shows you possible info structures.

The following video shows you possible info structures and the Copy Management.

This figure explains the standard steps to Activate S126 in the Logistics Information System.

As part of the Variant Configuration, you must make additional requirements for activating the update. Perform the following three steps to activate the update of information structure S126 in the Logistics Information System:

Creation of planning profiles and possibly Planning Tables.
For the materials that are relevant for the evaluation, you must define Planning Profiles and possibly Planning Tables.
These two objects will be detailed later in this unit.
This first step is specific to Variant Configuration and is only needed there.
Setting of Update.
Implement the update. To do this, create groups for the customer, the material, the item type, and/or the sales area (transaction OVRP). This is a standard step that doesn't involve any aspect of Variant Configuration.
Activation of Update.
Last step: do the activation of the update (transaction OMO1).

Hint

See SAP Notes 174758 and 173756 for information structure S138.

Planning with Characteristics-Based Forecasting

Planning

Overview

The next figure explains the planning levels in a sales order scenario.

The Sales Order is created, and the Make to Order Production for the finished product starts. NO planning takes place at this level. The planning happens at item level.

This figure explains at a detailed level the assembly planning, after a Sales order was created and a make to order production started. For the Assemblies on stock, a planning and manufacturing takes place. Consumption with the dependent requirements of the finished product also happens.

Planning at assembly level is useful for make-to-order manufacturers such as variant manufacturers. A saved demand forecast can be submitted for certain assemblies or components. It doesn't apply to the variety of variants of the finished products.

This figure shows a pure sub assembly planning strategy 70. This strategy was not developed especially for variant configuration but can be used.

In this planning strategy, planning for an assembly is considered separately. The planned independent requirement is entered at assembly level and triggers the production of the assembly.

If sales orders are received for the finished product, the BOM is exploded for the finished product. In the same way, Planned orders or Production orders for the finished product, dependent requirements, or reservations are generated for the assembly. You consume the planning of the assembly.

If sales orders, planned orders, or production orders at finished product level, the dependent requirements, or reservations exceed the planned independent requirements of the assembly, a planned order is created for the assembly with the next planning run.

In Sales and Distribution, the system doesn't check the quantities of the assembly planning.

Strategy 70 must be entered in the strategy group of the material master and the mixed MRP indicator must be set for assembly planning.

The consumption indicator on the item screen of the planned independent requirement must allow consumption against customer requirements, reservations, and dependent requirements.

Characteristics-Based Forecasting

This figure shows planning strategy 56. This strategy was developed especially for variant configuration. It's the Characteristics-Based Forecasting.

This figure explains the Process of Characteristics-Based Forecasting – 56. Check the notes for detailed information.

Strategy 56 calculates the dependent requirements of the components according to the usage probabilities of the characteristic values.

Incoming sales orders consume the planned independent requirements of the configurable material.

The requirements type for the planned independent requirement is VSE and for the customer requirement, it's KEKS.

In characteristics-based forecasting, the full functionality for modeling Variant Configuration isn't available.

Hint

For more information, see SAP Note 68033.

This figure shows you the process flow of Characteristics-Based Forecasting – 56. It starts with material change where you enter the strategy 56. Then you generate and maintain the planning tables. Next you create and maintain planning profiles. After that, you create the planned independent requirements for the Finished Product. Then you do the Requirements planning. You work with the Sales Order. Finally, you do the requirements planning.

This figure explains the creation of a planning and maintaining of a Planning or Combination Table for strategy 56.

In characteristics-based forecasting, you can optionally work with planning tables. You can use it to map the frequency of the combinations of value assignments.

This enables you to include dependencies between the valuations of different characteristics in planning.

Example:

Experience has shown that the customer's wishes regarding Size (Frame) and Color aren't independent, but certain colors are more popular with larger frames. Other colors are more popular with smaller frames.
To can take this into account later in characteristics-based forecasting, you can use the planning table to determine frequencies, for example, large frame with red color.

You use the planning profile to create the prerequisite for maintaining planned independent requirements. The planning profile defines which entries of planned frequencies of the individual valuations are possible.

Only the following values, which are marked as relevant for planning in the planning profile, are available in the maintenance of planned independent requirements:

Characteristic values
Characteristic value combinations according to planning table

Planning with Characteristics-Based Forecasting

In your configuration model, you want to plan certain parts using your characteristics.

First you have to define which characteristics are relevant for planning. Then you assign usage probabilities to their values. A planning run is then started for the planned independent requirements of the configurable material. It determines the requirements using the usage probabilities.

For characteristics-based forecasting, you must ensure that the correct planning strategy has been assigned to your configurable material T-FCBC##. Check the MRP data on screen 3 in the material master record and assign the strategy for standard product planning (56). You must also set the consumption mode to 2 (backward/forward) for a period of 30 days each.
The characteristics of the frame height and color are to be planned using usage probabilities.
Create a planning profile for your material T-FCBC## and assign the above planning table T_FCBC##.
In our example, we plan T-FCBC## for a planning period of six months.
Display the stock/requirements list for your configurable material T-FCBC##.
Start an MRP run. Execute a multilevel single-item planning run for your material, T-FCBC##.
After the MRP run, check the result for the configurable material T-FCBC## in the stock/requirements list.
Create Sales Order for T-FCBC##.
Since we do not want to run through a procurement process here in the course for the components required according to the forecast, you post the required components in sufficient quantity to stock.

ExerciseStart Exercise

Planning with Long-term Planning, Characteristics-Based Planning, and Assembly Planning

The following figure gives you an impression on long-term planning:

Characteristics-Based Forecasting = Strategy 56
Assembly Planning = Strategy 70

This figure explains the long-term planning with Strategy 56 (Characteristics-Based Forecasting) and Strategy 70 (Assembly Planning).

The next figure shows the simulative part of planning with:

Long-term planning
Characteristics-based planning
Assembly planning

This is first process figure. It shows the simulative part of Planning with long-term planning, characteristics-based planning, and assembly planning.

Strategies 56 and 89 create inactive planned independent requirements in the standard system. Characteristics planning is also carried out here.

In long-term planning, inactive dependent requirements of the components are determined according to the usage probabilities of the characteristic values.

These dependent requirements can be activated using a transfer report (transaction MS66). The planned independent requirements of the header material aren't considered and are therefore inactive.

The next figure shows you the operative part of planning with:

Long-term planning
Characteristics-based planning
Assembly planning

This is second process figure. It shows the operative part of Planning with Long-Term Planning, Characteristics-Based Planning, and Assembly Planning

At assembly level, all further steps run in the same way as the strategy: >25 for the header and 70 for assemblies<.

The following figure shows you the process flow with:

Long-term planning
Characteristics-based planning
Assembly planning

This figure shows the process flow for Planning with Long-Term Planning, Characteristics-Based Planning, and Assembly Planning. It starts with the change of the material master. Then you create independent requirements for the finished product. Next you create a long-term planning scenario and do a long-term planning. Afterward, you copy the simulative dependent requirements. Next you create a Sales Order, and last you do a requirements planning.

(1) Assign the proper strategies to the header material and assemblies.

The planning profile is created as described in the previous slides. The same applies to planning tables/combination tables.

(2) Create PIRs in an inactive version.

(3) A scenario is required for long-term planning. This contains the period to be planned, the plant, the version of the planned independent requirements, and so on. The long-term planning profile must be released for long-term planning.

(4) Simulative dependent requirements are generated in long-term planning (for example, in the same way as MRP: Single-item, multilevel planning).

(5) These dependent requirements were the aim of the previous steps. The dependent requirements that are currently still inactive are to be transferred to MRP. This is done using transaction MS66.

Corresponding procurement proposals are generated in material requirements planning.

These assemblies can be preproduced. Components can be purchased.

(6), (7) Incoming sales orders for the finished product then lead to dependent requirements at the assembly level. These are consumed by the requirements from the forecast.

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