Transparent production planning and scheduling with SAP S/4HANA and embedded PP/DS
Implementation highlights
- Increase of on-time delivery
- Reduction of delay costs
- Optimization of makeready through the introduction of a makeready die
- Creation of 12 personnel pools for personnel scheduling
- Planning representation of a multi-machine operation
Initial situation
At the start of the project, the Neutrik Group used production planning PP in SAP S/4HANA for production planning and execution. SAP PP/DS was not used in a side-by-side scenario before the S/4HANA transformation.
To ensure that the requirements for modern production planning can be optimally implemented at various production sites, the potential benefits of extended planning with PP/DS came into focus with S/4HANA.
This is because both planners and management lacked efficient control tools to harmonise multi-stage production with the business objectives of cost-optimised capacity utilisation. Effective supply chain processes such as the precise planning of the delivery of purchased parts or cross-plant parts planning could not be carried out and monitored transparently. This is where CONSILIO's consulting and development expertise in the area of SAP PP/DS came into play.
Thanks to CONSILIO's professional support, we can fully exploit the strengths of the PP/DS Optimizer in embedded PP/DS under S/4HANA and benefit from greater transparency in production planning and scheduling.
Challenge
In addition to the pre-defined requirements for the solution, other challenges arose during the project. One example of this is the planning and implementation of multiple machine operation so that one employee can look after up to four machines.
The optimisation of throughput times, for example through a targeted reduction in set-up times or the adjustment of batch sizes for optimised machine utilisation, were also required.
Requirements for the solution
- Enabling a pulling production
- Avoidance of overproduction in stock
- Detailed planning and order scheduling
- Efficient multi-level parts list planning
- Fast exchange of information between the production stages
- High transparency of production plans and bottlenecks
- Interactive, user-guided planning and simulation
- Automatic (initial) creation of the plan
- Creation of an optimised capacity allocation
- Planning visualisation of multiple machine operation
Advantages of the solution
- Implementation of medium and short-term production, capacity and procurement planning in PP/DS
- Mapping of production processes in PP/DS and corresponding adjustment of routings
- Preparation of a long-term forecast and network planning with SAP IBP
- Transparent monitoring of the demand and stock situation
- Ensuring the complete integration of suppliers and order scheduling in detailed planning and production sites
- Clearly defined roles and responsibilities in planning
- In addition, a CONSILIO solution was implemented with which change documents in the production order can be logged and analysed
Objective of the project
The primary objective of the project was to increase productivity and transparency in the production plants and to introduce standardised and future-proof planning processes throughout the company.
The functional objectives of the project were to improve the ability to act and the flexibility of all project employees involved in the planning process. Among other things, they included a significant improvement in planning and capacity optimisation at all relevant production levels as well as the optimisation of planning automation procedures and the associated relief of employees from their routine activities.
The Neutrik Group's corporate planning envisages a significant increase in sales volume by 2025, which requires the planning system to be future-proof. The material flow is to be planned as leanly as possible and a pulling production without excessive stocks at the individual production stages is to be achieved.
