2053 pepsicos manufacturing planning migration to production planning and detailed scheduling in sap...

8/18/2019 2053 PepsiCos Manufacturing Planning Migration to Production Planning and Detailed Scheduling in SAP Advanced Planning and Optimization (1)

http://slidepdf.com/reader/full/2053-pepsicos-manufacturing-planning-migration-to-production-planning-and-detailed 1/22



Manufacturing Planning Solution Architecture

Planned Order Integration Challenges

Enhanced Planning and Scheduling Capabilities

Development and Deployment Strategy

Expected Takeaways

2



Who We ArePepsiCo Portfolio is Everywhere

3



Supply ChainPlanning and

Operations

ManufacturingPlanning

DemandPlanning

MaterialRequirementsPlanning

Distribution

RequirementsPlanning

ReplenishmentPlanning

TacticalCapacity

Planning

ManufacturingExecution Inventory

Policy

Integrated Supply Chain Planning and Operationsfor Quaker, Tropicana and Gatorade

Mixed planning technologysuite

Service contract expiringfor Manufacturing Planning

Seize the opportunity tosimplify architecture &Improve ROI

Take advantage of latestfeatures in SAP-SCM

4



We embarked on a journey to migrate toSAP-SCM for Manufacturing Planning

More than 100 manufacturing locations with diverseproduction planning needs

Fair share for inventory pre-build, safety stock and

demand cuts

Capability to turn off production lines for specificproducts and planner controlled production rates

Need for daily orders by downstream systems but displaymulti-day orders for production planners

5



SNPOptimization

DetailedScheduling

ECC Orders

MRP

SNP Optimization

Run on demand for 64 weeks rough cut capacity planningCost driven, constraints considered, with levelling of inventory,safety stock and demand cuts

Detailed Scheduling

Use SNP orders as inputs for 7 weeks of detailed scheduling

Planners can schedule orders using heuristics with sequencingper the sequence dependent setup

ECC Planned Orders

Real time synch between APO and ECCDaily orders for downstream systems and reports with enhanced

confirmation logic

Material Requirements Planning (MRP)

Continuous integration of Planned Orders between ECC and APO to drive MRP Requirements

Manufacturing Planning Solution Architecture

6



89% of over 110 businessrequirements met throughstandard / configuration

Solution enhancementsrequired in all impactedareas

Fit-Gap Analysis Unveiled 5 Areas of Impact

MasterData

SupplyNetworkPlanning

DetailedScheduling

Integrationwith

downstreamsystems

Reporting

7



Master Data: Production Line Run Strategy

Two SKUs can be produced on the same resourceProduction of SKU1 is blocked when production for SKU2 is turned onThis data feeds into Optimizer to turn on/off the PDS

Customization that allows date effective PDS availabilitywithout changing actual master data

8



Master Data: Time Effective Run Rate

9



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

SNP: Cost Driven Leveling

Safety Stock Target 20%

30%

40%

60%

80%

10



Transition from SNP to PPDS

DS Scheduler responsible forConversion of SNP -> PPDS

• SNP Orders are uniquelyidentified with a Magenta Bar onthe DS Planning Board

• Interactive conversion throughDS Planning Board

• Schedulers Sequence in WeeklyIntervals/Periods to Match SNPSolve

• Setup Times are based on the

Sequence of Individual Ordersand may require manualintervention by the Scheduler

SNP Orders on the DS Planning BoardHighlighted in Magenta

11



Sequencing Production on the DS Planning Board

• Determine the initial sequenceof the Production Schedule

• Provide a Sort Criteria tocreate an ideal ProductionSequence

• Sequence Keys vary byprocess and businessrequirements

• Flexible in Nature (Size, Pack,Flavor) and align closely withSetup Matrix and Color Codes

GraphicalObjects onthe DSPlanningBoard bySequence

Key

Sequenced Orders on the DS PlanningBoard

12



Color Codes on the DS Planning Board

• User Defined color coding for

each material/location

• Allows the planners to viewgroups of products by colorand quickly identify scheduling

and master data issues

• Flexible in nature and alignsclosely integrated into theplanning process

• Master Data on the APOProduct Master

Color Codes for DS Planning Board

13



Inventory Review

• Sequence Keys provide a “BestCase” Production Schedule but donot address inventory or customerservice constraints

• Planners Review InventoryPositions in PPDS to identifymaterials with potential cuts

• Positive Inventory shown asGreen, Negative as Red andSafety Stock breach is shown inYellow

• Exceptions are monitored andcorrective actions are taken

Inventory Positions forEach Material

14



PPDS Optimization

• Used to do minimize cuts in theshort term

• Combination of Setup Costs andDelay Penalties

• Two Week Optimization Window

• Optimization results may result inadditional setup time, but loweroverall delays when days count

• No Order Creation, No Source ofSupply Determination and No

Alternate Modes

OptimizationResults

15



Detailed Scheduling Toolset

Reso urc e Netw ork s • 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

Cam paign Planning • Used as a Planning Technique to group multiple orders and

schedule those orders as a group• Only used within DS Planning Board

Cont inuo us Inpu t /Outpu t Bot tom Up Schedu l ing

• 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 theyare two orders in the system.

16



MRP: Just In Time Requirements

FG Planned Order: 3, 000 CS SFG requirement:: 6, 000 LBOrder Time Stamp: 3/30 12:00 PM – 4/1 11:59 PM 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

Custom logic to solve for just in time inventory of semi-finished goods and raw

materials : split dependent requirements in proportion to duration of theFinished Good / Semi-Finished Good production per day

17



Planned Order Consumption

Multi-day planned order: 3/30 12:00 PM – 4/3 10:00 AMConfirmations posted on 3/30, 3/31, 4/1, 4/2 and 4/3

Past and current finishdate

Past , current , +1 futurefinish date

Past , current , +4 futurefinish date

Past and current startdate ( Custom)

PO consumed only on4/3

PO consumed only on4/2 and 4/3

PO consumed every day.Over production on Thu / Fri canconsume next week’ s orders

PO consumedevery day

• 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

18



Development and Deployment Strategy

Fit-Gap

Analysis

PhasedDevelop-ment

ProductionParallel

Deploy-

mentStrategy

Allowing the business to execute theMP solution in a production-likeenvironment is key• Quality of Solution Validation• Training and Change Management

19



STAY INFORMED

Follow the ASUGNews team:

Tom Wailgum: @twailgum

Chris Kanaracus: @chriskanaracus

Craig Powers: @Powers_ASUG

21



THANK YOU FOR PARTICIPATING

Please provide feedback on this session by completinga short survey via the event mobile application.

SESSION CODE: ####

For ongoing education on this area of focus,visit www.ASUG.com

22

2053 pepsicos manufacturing planning migration to production planning and detailed scheduling in sap...

Documents