Name: Introduction to Predictive Material and Resource Planning - SAP S/4HANA Manufacturing
Uploaded: 2021-3-24
Duration: 479 s
Description: This microlearning introduces you to predictive material and resource planning with SAP S/4HANA Manufacturing.

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<div>This microlearning introduces you to predictive material and resource planning with SAP S/4HANA Manufacturing. </div>

Introduction to Predictive Material and Resource Planning  - SAP S/4HANA Manufacturing

Welcome to this micro learning for predictive material and resource planning. My name is Daniel and within the next minutes we want to gain an understanding of the core principles behind PMRP. The agenda includes two points. On the one hand, we want to address the question in which operational context we can use PMRP and how it fits into the processes of production planning. And on the other hand, we want to get a rough understanding of how we can use the system in the SAP S4HANA cloud environment and what features it has. The goal of this micro-learning is that after watching this video, you will be able to address how PMRP can add value to your business processes. But before we start, let's think again about the idea of the product. What are we actually dealing with here? With PMRP, SAP provides a tool for plant-based production simulation, which is based on the concept of the main memory technology and is therefore able to deliver fast results even for complex planning situations. The most important aspect, in my opinion, is the really user-friendly Fiori front-end which doesn't require any customizing and can be used out-of-the-box. But much more important, however, is the question of which business processes we can support with the tool and what insights can be gained with in-depth processes. With PMRP, we support the long-term planning. This typically refers to horizons of weeks or even months. Since there is still a lot of room for movement before the actual production, we can make simplified assumptions here. As an example, we work only with infinite capacities. The key question in long-term planning is not the question of cost-optimal decision, but the question of the feasibility of a production program. Within the process, starting from the planning, departments close to the production process should be given the opportunity to adjust their own work with regard to the upcoming production. By using PMRP, the planner is able to perform a planning simulation, which is recorded in form of a simulation object. This object bundles relevant transaction and master data, and the simulation in our case defines a possible state of the planning in the future. Thereby, it can be, for example, calculated how a change in plant-independent requirements will probably affect the capacity, the stock, or the external procurement. As a planner, you only specify simulation time range, as well as a few other necessary parameters, such as the plans. And of course, there are much more extensive options that can be taken into account. But in the simplest case, the few mandatory parameters are sufficient. The aim here is an early matching of existing capacity with sales plans in order to check their feasibility in the context of production. In concrete terms, we can, among many other things, generate the following insights with PMRP. Firstly, how does the sales and the rough planning affect the available resources? This gives us the opportunity to make early adjustments to capacity. Secondly, we get the option to recognize material bottlenecks and in the case of external produced material, we could inform our supplier in sufficient time or look for additional sources of supply. But let's think again about the points because in fact they give us far-reaching possibilities to include all processes related to production planning. By passing on realistic data to related departments at a very early stage, they can in turn pass on their results to upstream or downstream departments, processes or suppliers. One example would be that we communicate the capacity situation with the cost planning department. Perhaps you are asking how a business process with PMRP can look like now. Therefore, let's suppose a very simplified model of an operational planning. We assume that we have a production program in form of planned independent requirements and we can transform now the information to PMRP and simulate as well as evaluate a resulting production program. Within the simulation, we can, among other things, determine the exact capacity requirements for the work centers associated with the production program. Any violations of the maximum available capacity are automatically detected by PMRP and an adjustment of the capacity is suggested to the planner. These adjustments can then be transferred to the corresponding work centers. As you've probably noticed, there are multiple requirements that must be met so that we are able to run a simulation at all. Therefore, let's think again about what would be needed to implement such a simulation at minimum effort within an S4HANA system. Here we need a number of master data that are essential, such as material, master, bill of material, routings or work centers. but this data we typically already have in our S4HANA system. In addition, it is thinkable to consider further aspects within the planning. For example, we could model the delivery capacities of our supplier and consider these within the integrated demand planning. The modeling options are numerous and can also be designed by the planner. As I mentioned earlier, they can range from simple assumptions to complex configurations. Another very interesting point is that we can plan any material within the simulation. So even material that is typically plant consumption driven can be considered as plant driven within PMRP. What we get from this is a very accurate impact of a production program and on any material requirement. The system provides us with a simple overview of avoidable problems for the rebuilds capacity and material. We can modify the simulation interactively and PMMP automatically suggests solutions that can be adopted by the planner. We can create as many simulations as we want and then choose the one that best fits for our business situation and release it to the operational planning. Only then the changes and modifications of the production program made by us will become operationally effective. Let's briefly summarize what we've learned in this video. Long-term planning typically deals with the horizons of weeks or even months. PMRP has the tools to support exactly these processes. The tool is based on realistic master and transaction data from the ERP system and doesn't require any customizing. I hope you enjoyed the video and thank you for watching.