Manufacturing Planning

Solution Migration to SCM

Xiaomei Ding
Patrick Green
SESSION CODE: CP2053
Disclaimer: The views and opinions expressed in this document and presentation are those of the author and do not necessarily reflect those of the company.
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Expected Takeaways

Manufacturing Planning Solution Architecture

Planned Order Integration Challenges
Enhanced Planning and Scheduling Capabilities
Development and Deployment Strategy

PepsiCo
is Everywhere
Who We Portfolio
Are

Integrated Supply Chain Planning and Operations

for Quaker, Tropicana and Gatorade
Demand
Planning

Mixed planning technology

suite

Manufacturing
Execution

Material
Requirements
Planning

Inventory
Policy

Supply Chain
Planning and
Operations

Replenishment
Planning

Service contract expiring

for Manufacturing Planning

Distribution
Seize the opportunity to
Requirements
simplify architecture &
Planning

Improve ROI

Tactical
Capacity
Planning

Take advantage of latest

features in SAP-SCM

Manufacturing
Planning

We embarked on a journey to migrate to

SAP-SCM for Manufacturing Planning
More than 100 manufacturing locations with diverse
production planning needs
Fair share for inventory pre-build, safety stock and
demand cuts
Capability to turn off production lines for specific
products and planner controlled production rates
Need for daily orders by downstream systems but display
multi-day orders for production planners

Manufacturing Planning Solution Architecture

SNP
Optimization

Detailed
Scheduling

ECC Orders

SNP Optimization

Detailed Scheduling

Run on demand for 64 weeks rough cut capacity planning

Cost driven, constraints considered, with levelling of inventory,
safety stock and demand cuts

Use SNP orders as inputs for 7 weeks of detailed scheduling

Planners can schedule orders using heuristics with sequencing
per the sequence dependent setup

ECC Planned Orders

Real time synch between APO and ECC

Daily orders for downstream systems and reports with enhanced
confirmation logic

MRP

Material Requirements Planning (MRP)

Continuous integration of Planned Orders between ECC and

APO to drive MRP Requirements

Fit-Gap Analysis Unveiled 5 Areas of Impact

Reporting

Master
Data

Integration
Supply
with
Network
downstream
Planning
systems
Detailed
Scheduling

89% of over 110 business

requirements met through
standard / configuration
Solution enhancements
required in all impacted
areas

Master Data: Production Line Run Strategy

Customization that allows date effective PDS availability
without changing actual master data

Two SKUs can be produced on the same resource

Production of SKU1 is blocked when production for SKU2 is turned on
This data feeds into Optimizer to turn on/off the PDS

Master Data: Time Effective Run Rate

SNP: Cost Driven Leveling

Allows materials to prebuild evenly across all products at a location

Ensures that demand shortages are spread across all materials as evenly as
possible. Slow moving materials not penalized by a deeper cut.

Every product meets a tier before moving to the next

Safety Stock Target

20%
30%
40%
60%
80%

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Transition from SNP to PPDS

DS Scheduler responsible for
Conversion of SNP -> PPDS

SNP Orders are uniquely

identified with a Magenta Bar on
the DS Planning Board
Interactive conversion through
DS Planning Board
Schedulers Sequence in Weekly
Intervals/Periods to Match SNP
Solve
Setup Times are based on the
Sequence of Individual Orders
and may require manual
intervention by the Scheduler

SNP Orders on the DS Planning Board

Highlighted in Magenta

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Sequencing Production on the DS Planning Board

Determine the initial sequence
of the Production Schedule
Provide a Sort Criteria to
create an ideal Production
Sequence
Sequence Keys vary by
process and business
requirements

Flexible in Nature (Size, Pack,

Flavor) and align closely with
Setup Matrix and Color Codes

Graphical
Objects on
the DS
Planning
Board by
Sequence
Key

Sequenced Orders on the DS Planning

Board

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Color Codes on the DS Planning Board

User Defined color coding for
each material/location

Allows the planners to view

groups of products by color
and quickly identify scheduling
and master data issues

Color Codes for DS Planning Board

Flexible in nature and aligns

closely integrated into the
planning process

Master Data on the APO

Product Master

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Inventory Review

Sequence Keys provide a Best

Case Production Schedule but do
not address inventory or customer
service constraints

Planners Review Inventory

Positions in PPDS to identify
materials with potential cuts

Positive Inventory shown as

Green, Negative as Red and
Safety Stock breach is shown in
Yellow

Exceptions are monitored and

corrective actions are taken

Inventory Positions for

Each Material

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PPDS Optimization

Used to do minimize cuts in the

short term

Combination of Setup Costs and

Delay Penalties

Two Week Optimization Window

Optimization results may result in

additional setup time, but lower
overall delays when days count

No Order Creation, No Source of

Supply Determination and No
Alternate Modes

Optimization
Results

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Detailed Scheduling Toolset

Resource Networks
Used to model physical constraints in the manufacturing process.
Resources grouped as networks and planned as a group.
Alerts created for orders that violate the resource network

Campaign Planning
Used as a Planning Technique to group multiple orders and
schedule those orders as a group
Only used within DS Planning Board

Continuous Input/Output Bottom Up Scheduling

Custom Scheduling Heuristic based on Bottom Up Heuristic

Aligns the start of the parent order to the start of the child order,
as they will physically run as a single process even though they
are two orders in the system.
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MRP: Just In Time Requirements

Custom logic to solve for just in time inventory of semi-finished goods and raw
materials : split dependent requirements in proportion to duration of the
Finished Good / Semi-Finished Good production per day
FG Planned Order: 3, 000 CS
Order Time Stamp: 3/30 12:00 PM 4/1 11:59 PM

SFG requirement:: 6, 000 LB

Total order duration: 60 hours

Mon 3/30

Tue 3/31

Wed 4/1

FG production duration

12 hours

24 hours

24 hours

FG production

600 CS

1,200 CS

1,200 CS

Standard Functionality
SFG Requirement

6, 000 LB

Configuration for Equal Distribution

SFG Requirement

2, 000 LB

2,000 LB

2,000 LB

Customization for Proportionate Distribution

SFG Requirement

1,200 LB

2,400 LB

2,400 LB

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Planned Order Consumption

Production confirmations posted by plant operators consume planned orders scheduled by

MP planners
Consumption of a planned order reduces dependent requirements
Tracked for Schedule adherence and attainment reporting
Standard functionality support backward consumption based on order finish date
Configuration for forward consumption based on order finish date is an additional feature
PepsiCo plants need backward consumption based on start date

Multi-day planned order: 3/30 12:00 PM 4/3 10:00 AM

Confirmations posted on 3/30, 3/31, 4/1, 4/2 and 4/3
Past and current finish
date

Past , current , +1 future

finish date

Past , current , +4 future

finish date

Past and current start

date ( Custom)

PO consumed only on
4/3

PO consumed only on
4/2 and 4/3

PO consumed every day.

PO consumed
every day

Over production on Thu / Fri can

consume next week s orders

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Development and Deployment Strategy

Allowing the business to execute the
MP solution in a production-like
environment is key
Quality of Solution Validation
Training and Change Management

Fit-Gap
Analysis

Production
Parallel

Deployment
Strategy

Phased
Development

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KEY LEARNINGS
Fit/Gap analysis to identify the complex enhancements
for phased development approach
Production Parallel for Quality of Solution validation and
business training/readiness
Capacity planning with Sequence Dependent Setup
(SDS) during the DS horizon and average setup times in
the SNP horizon due to the performance limitation of the
SNP SDS functionality.

Planning/Execution integrated requirements gathering to

avoid the downstream impacts
Solution workshops to build team knowledge
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Follow the ASUGNews team:
Tom Wailgum: @twailgum

Chris Kanaracus: @chriskanaracus

Craig Powers: @Powers_ASUG

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