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Consuming Capacity Accurately

Objective

After completing this lesson, you will be able to consume capacity accurately

Capacity Consumption

A production source resource is a resource that is used by a particular production source of supply. It models the capacity consumption of the production resource, that is, the amount of capacity consumed per unit of product produced.

You control how the capacity usage is calculated for production sources with a production lead time greater than zero in the Capacity Consumption Policy attribute (PCAPACONSPOLICY) of the master data type SOURCEPRODUCTION.

Capacity Consumption Policies

Capacity Consumption Policy

Description

0

All capacity usage is assigned to the output period.

Capacity usage is calculated by multiplying the values of the key figures Production Receipts (PRODUCTION) and Capacity Consumption Rate of Production Resource (PCAPACONSUMPTION) for the output period.

1

All capacity usage is assigned to the start period, that is, the period in which the production process starts.

Capacity usage is calculated by multiplying the values of the key figures Production Receipts and Capacity Consumption Rate of Production Resource for the start period.

2

Capacity usage can take place in each period of the production process.

Capacity usage is calculated by multiplying the values of the key figures Production Receipts and Capacity Consumption Rate of Production Resource for each period of the production process.

Outline of Capacity Consumption Policy

Capacity Consumption Offsets

Instead of using the Capacity Consumption Policy attribute, you can model capacity consumption in more detail by specifying the first and last periods in which capacity consumption is to be considered. You use the PCAPACONSSTART and PCAPACONSEND attributes in the PRODUCTIONRESOURCE master data type for this purpose. The values of these two attributes represent the capacity consumption offsets: They specify an offset related to the start of the corresponding production process.

Prerequisites

To enable capacity consumption offsets, the PLEADTIME attribute in the SOURCEPRODUCTION master data must be greater than zero.
Capacity consumption offsets must not be negative and must not be greater than the production lead time. That is, the values in the PCAPACONSSTART and PCAPACONSEND attributes have to fulfill the following equation: 0 ＜=PCAPACONSSTART ＜= PCAPACONSEND ＜=PLEADTIME.
Capacity consumption offsets are considered only if both PCAPACONSSTART and PCAPACONSEND have valid values. In this case, the Capacity Consumption Policy attribute (PCAPACONSPOLICY) is ignored.

Capacity Consumption – Master Data Attributes

Use the following master data attributes to define production lead time

To define production lead time, you use the following master data attributes:

Production Lead Time (PLEADTIME):
Use this attribute to specify the duration of the production lead time as a number of planning periods. You assign it to the master data type SOURCEPRODUCTION (header)
Capacity Consumption Policy (PCAPACONSPOLICY):
Use this attribute to define how capacity consumption is modeled in the production process. You assign it to the master data type SOURCEPRODUCTION (header).
Component Offset (COMPONENTOFFSET):
Use this attribute to specify, for each component, an offset that defines the planning period in which it is consumed by the production process. The offset relates to the start (that is, the first period) of the production process. You assign it to the master data type PRODUCTIONSOURCEITEM.

Demonstration: How to Set Capacity Consumption

Set Capacity Consumption Policy

For your long production lead time product, your bottleneck resource is only part of the production lead time. Adjust your capacity consumption so it accurately reflects the consumption.

Check the capacity consumption for your bottleneck resource at location 1000.

Steps

Using your Supply Planning favorite and the Capacity by Product tab, record Capacity Usage of Production Resource key figure values for location ID 1000, resource ID WT-L##_1000_001, product T-F2## and source ID T-F2##_1000_0001.
Location ID Resource ID Product ID Source ID
Key Figures
Period + 3
Period + 4
Period + 5
Period + 6
1000 WT-L##_1000_001 T-F2## T-F2##_1000_0001
Capacity Usage of Production Resource
1. Open your Supply Planning favorite and choose the Capacity by Product tab.
2. Locate for location ID 1000, resource ID WT-L##_1000_001, product T-F2## and source ID T-F2##_1000_0001 and record the values in the table.
Verify that production lead time in the Production Source Header for location ID 1000, product ID T-F2##, and source ID T-F2##_1000_0001 is 3 and set the Capacity Consumption Policy to 1.
1. On the SAP IBP ribbon, in the Master Data section, choose Manage → Single.
2. Choose Production Source Header from the dropdown list.
3. Enter the location ID, product ID, and source ID and choose Change (pencil icon).
4. In the Capacity Consumption Policy field enter 1 , check production lead time for product ID T-F2## is 3 and save.
Execute a Time-Series-Based Supply Planning Heuristic run.
1. In the Application Jobs section of the SAP IBP ribbon choose SOP Operator → Run.
2. Choose Time-Series-Based Supply Planning Heuristic. Choose Next.
3. You can also select a reason code and enter a comment.
4. Choose Run.
5. On the pop-up the status of the job will be displayed. To review the logs select Navigate to Status, to close the pop-up select OK. If you want to review the logs later, choose S&OP Operator → Status.
6. When the status is Finished, proceed to the next step.

Using your Supply Planning favorite and the Capacity by Product tab, record Capacity Usage of Production Resource key figure values for location ID 1000, resource ID WT-L##_1000_001, product T-F2## and source ID T-F2##_1000_0001.

Location ID	Resource ID	Product ID	Source ID	Key Figures	Period + 1	Period + 2	Period + 3	Period + 4	Period + 5	Period + 6
1000	WT-L##_1000_001	T-F2##	T-F2##_1000_0001	Capacity Usage of Production Resource

Open your Supply Planning favorite and choose the Capacity by Product tab.
Locate for location ID 1000, resource ID WT-L##_1000_001, product T-F2## and source ID T-F2##_1000_0001 and record the values in the table.
Compare to the values in step 1.

Question: What happened to the Capacity Usage values compared to those in step 1?
Answer: Resulting Capacity Usage is in the start period of the production process.
Set the Capacity Consumption Policy for location ID 1000, product ID T-F2##, and source ID T-F2##_1000_0001 in the Production Source Header to 2.
1. On the SAP IBP ribbon, in the Master Data section, choose Manage → Single.
2. Choose Production Source Header from the dropdown list.
3. Enter the location ID, product ID, and source ID and choose Change (pencil icon).
4. In the Capacity Consumption Policy field enter 2 and save.
Execute a Time-Series-Based Supply Planning Heuristic run.
1. In the Application Jobs section of the SAP IBP ribbon choose SOP Operator → Run.
2. Choose Time-Series-Based Supply Planning Heuristic. Choose Next.
3. You can also select a reason code and enter a comment.
4. Choose Run.
5. On the pop-up the status of the job will be displayed. To review the logs select Navigate to Status, to close the pop-up select OK. If you want to review the logs later, choose S&OP Operator → Status.
6. When the status is Finished, proceed to the next step.

Using your Supply Planning favorite and the Capacity by Product tab, record Capacity Usage of Production Resource key figure values for location ID 1000, resource ID WT-L##_1000_001, product T-F2## and source ID T-F2##_1000_0001.

Location ID	Resource ID	Product ID	Source ID	Key Figures	Period + 1	Period + 2	Period + 3	Period + 4	Period + 5	Period + 6
1000	WT-L##_1000_001	T-F2##	T-F2##_1000_0001	Capacity Usage of Production Resource

Open your Supply Planning favorite and choose the Capacity by Product tab.
Locate for location ID 1000, resource ID WT-L##_1000_001, product T-F2## and source ID T-F2##_1000_0001 and record the values in the table.
Compare to the values in step 4.

Question: What happened to the Capacity Usage values compared to those in the previous results?
Answer: Capacity Usage had changed, it is now calculated in each period of the production process.
Result
You decide that the Capacity Consumption Policy is not accurate enough for this situation. You decide now to use the Capacity Start and End values to consume the capacity more accurately.
Set the Start Period of Capacity Consumption to 1 and the End Period of Capacity Consumption to 2 for resource ID WT-L##_1000_001 and source ID T-F2##_1000_0001 in the Production Source Resource.
1. On the SAP IBP ribbon, in the Master Data section, choose Manage → Single.
2. Choose Production Source Resource from the dropdown list.
3. Enter the resource ID and source ID and choose Change (pencil icon).
4. In the Start Period of Capacity Consumption field enter 1, in the End Period of Capacity Consumption field enter 2, and save.
Execute a Time-Series-Based Supply Planning Heuristic run.
1. In the Application Jobs section of the SAP IBP ribbon choose SOP Operator → Run.
2. Choose Time-Series-Based Supply Planning Heuristic. Choose Next.
3. You can also select a reason code and enter a comment.
4. Choose Run.
5. On the pop-up the status of the job will be displayed. To review the logs select Navigate to Status, to close the pop-up select OK. If you want to review the logs later, choose S&OP Operator → Status.
6. When the status is Finished, proceed to the next step.

Using your Supply Planning favorite and the Capacity by Product tab, record Capacity Usage of Production Resource key figure values for location ID 1000, resource ID WT-L##_1000_001, product T-F2## and source ID T-F2##_1000_0001.

Location ID	Resource ID	Product ID	Source ID	Key Figures	Period + 1	Period + 2	Period + 3	Period + 4	Period + 5	Period + 6
1000	WT-L##_1000_001	T-F2##	T-F2##_1000_0001	Capacity Usage of Production Resource

Open your Supply Planning favorite and choose the Capacity by Product tab.
Locate for location ID 1000, resource ID WT-L##_1000_001, product T-F2## and source ID T-F2##_1000_0001 and record the values in the table.
Compare to the values in step 8.

Question: What happened to the Capacity Usage values compared to those in the previous results?
Answer: Capacity Usage has changed, as Capacity consumption is considered from the first period until the second period after the start of the production process.

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