Sap Pp: Strategies for Long Term Planning

Long Term Planning In Sap Pp

Long-term planning in SAP PP is a crucial aspect of effective production management. It involves strategic decision-making and forecasting to ensure the smooth execution of production processes over an extended period. This article delves into the importance of long-term planning in SAP PP, exploring its benefits and highlighting key strategies for successful implementation. By understanding the significance of long-term planning, businesses can optimize their production operations, minimize disruptions, and achieve their overall goals efficiently.

Long Term Planning Objectives in SAP PP

The Planned Independent Requirement (PIR) can exist in two versions, active or inactive. However, for Long Term Planning (LTP), it is always set as inactive because its purpose is to be used for simulation purposes. LTP enables you to simulate the demand program at all levels of the Bill of Materials (BOM).

In order to incorporate new requirements, you have the option to re-run Long Term Planning (LTP) using an inactive version. If you wish to remove LTP altogether, it is necessary to delete all planning scenarios associated with it.

Long Term Planning (LTP) in SAP PP is comparable to a simulated version of Material Requirement Planning (MRP) that forecasts the production plan based on future demands.

LTP can also be utilized to allocate routing tasks to cost centers. The available BOM and routing information can be employed for LTP purposes, while allowing for the use of diverse master data as well.

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Long-term planning in SAP: A guide for effective implementation

To begin, access the SAP Long-Term Planning option and input the necessary information. Utilize Transaction MS02 to execute an LTP run by specifying your planning scenario.

Inactive Version PIR Creation in SAP PP

To access the long-term planning feature in SAP PP, you can either use T-code MD61 or navigate to Logistics → Production → Production Planning → Demand Management → PIR → Create.

– Code for the material that requires the creation of a requirement.

– Code for the plant where this requirement is applicable.

– Use version 02, which is an inactive version and considers requirements in long-term planning (LTP) instead of material requirements planning (MRP).

– Specify the dates within the planning horizon for which demand needs to be generated.

– Set the planning period as month M.

In the subsequent screen, you will observe version 02 with an unchecked active checkbox indicating that it is an inactive version for Long Term Planning (LTP).

Input the desired quantity in the designated field for each month. Once done, click on the save button to store the entered data.

Types of planning in SAP PP

The sub-modules of SAP PP in India include the following:

1. Sales and operations planning (S&OP)

2. Long-term planning (LTP)

3. Data management (DM)

4. Master production schedule/material requirements planning (MPS/MRP)

5. Capacity requirements planning (CRP)

6. Shop floor control

7. Information systems

Creating Planning Scenarios

To conduct long term planning for annual simulated requirements in SAP PP, it is necessary to have different planning scenarios. These scenarios allow you to include or exclude planned receipts and current stock during the planning run.

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To generate a Planning scenario, you can utilize T-code: MS32 or navigate to Logistics → Production → Production Planning → Long Term Planning → Scenario → Create.

Type in the Planning scenario name and description, then hit Enter.

– Determine the duration for which Long Term Planning (LTP) should be executed.

– Specify that the initial stock is not taken into account by leaving it blank.

– Choose BOM number 01 to include only active Bill of Materials.

To access a small pop-up window, simply click on the PIR button located at the top of the screen.

To create a new entry, simply click on the plus sign in the small pop-up window and input version 02 along with the desired planning period.

In the following screen, you will be presented with a choice to execute tasks either in the background or online.

Planning file entries are generated. Click the button “immediately” to generate the entries.

You will receive a notification informing you that the system has identified a certain number of materials that are important for the long term planning process.

SAP transaction code for long term planning

MS04 is a pre-set code in SAP that allows users to carry out long-term planning (LTP) within the material requirements planning (MRP) module. This transaction code helps businesses forecast their future production needs and ensure they have enough materials available to meet those demands. By using MS04, companies can effectively plan for the long term and avoid any potential supply chain disruptions.

Long-term planning involves looking ahead and estimating the demand for products over an extended period of time, typically several months or even years. It takes into account various factors such as market trends, customer orders, historical data, and forecasts. With MS04, businesses can create comprehensive plans that consider all these aspects and make informed decisions about production schedules, inventory levels, procurement activities, and capacity utilization.

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– MS04 is a standard transaction code in SAP used for long-term planning.

– Long-term planning involves forecasting future production needs based on various factors.

Possible aims achievable through long term planning in SAP

By utilizing long term planning, businesses can gain valuable insights into their production capabilities and identify any potential bottlenecks or constraints that may arise due to increased demand. It allows them to proactively address these issues by adjusting production schedules, optimizing inventory levels, or seeking alternative suppliers if necessary.

One key aspect of long term planning is its ability to forecast material requirements accurately. By analyzing historical data and considering factors such as seasonality trends or market fluctuations, organizations can estimate future demands more effectively. This enables them to plan their procurement activities accordingly and ensure a steady supply chain flow without any disruptions.

Furthermore, long term planning also facilitates collaboration with vendors/suppliers by assessing their capacity and capability to meet anticipated demands. By evaluating supplier performance metrics such as lead times or delivery reliability, organizations can make informed decisions regarding sourcing strategies or negotiate contracts that align with their long-term goals.