 SAP S/4 HANA Logistics – Production planning processes

changes to run business in a simple and faster way in a

digital world
Within just few months after the release of SAP S/4 HANA, SAP’s next generation business suite with Logistics solution lined
up for release to the customer this month. A quick analysis of the features in the planning component has been analyzed and
some of my observations are shared here. Although my initial guess was that the primary focus of SAP was on the simplification
of tables. Code optimization and release of Fiori apps, but there are quite a good number of changes in transactional part side in
planning area.

Sales and Operations Planning: The current ECC functionality of SOP is going to be replaced with integrated business planning
(IBP) in a long run. Since IBP (S&OP on HANA) supports all SOP features along with advanced statistical forecasting
techniques, multi-level demand and supply planning, collaboration tools and the most user-friendly excel based UI and web-
based UI, what-if scenarios which will definitely going to bring much value than ECC-SOP for new customers and for the
existing customer who are planning to implement IBP-SOP. Also since SAP has been investing more effort in enhancing IBP
functionality than APO, it is a right thing to invest in IBP rather than go with conventional SOP approach. Of course, there is an
additional cost associated to install and implement IBP functionality but it is worth enough to invest.

Storage location based MRP run is no longer supported - With S/4 HANA Logistics, there is no provision to exclude MRP run
for a single storage location from the pre-defined MRP parameter set for plant-material combination. In ECC 6.0, the MRP run of
the excluded storage location can be handled using reorder point planning with a maximum lot sizing procedure. Since storage
location MRP area concept will be used to take care of the planning of each storage location, it reduces number of fields from
material master related to storage location MRP planning. It also helps to plan storage location MRP with any planning type such
as PD, P1 etc…

MRP run on HANA: MRP run has been optimized to the maximum extent using MRP live (MD01N transaction) functionality
and Customers are having an option to go in the path of either classical MRP on HANA platform or to go with MRP live. Since
 MRP Live reads the data, calculates shortage and writes planned orders at database level instead of performing at Application
server level, there will be a considerable improvement in performance.

MRP live differs from classic MRP in the following ways.

1. 1. MRP live does not generate MRP list: By using S/4 HANA, there is much improvement in the performance of the system,
hence MD04 ( stock requirement list ) output will be much faster which eliminated the need to view the old results i.e MRP list.
2. 2. Multi-level, make to order planning ( MD50) is not optimized for HANA: Since this transaction is to take care of performance
issue, there is no further refinement required. With HANA platform, it will be optimized further.
3. 3. Individual project planning (MD50) not optimized for HANA.
4. 4. MRP live always creates purchases requisitions: It is an unnecessary process step of converting planned order to purchase
requisition that has been eliminated by SAP. This help the amount of work to be performed by purchaser ( in some cases MRP
controller used to handle) who used to take care of converting planned orders to purchase requisition.

A. S/4 HANA no more support net change plan in the planning horizon (NETPL). With the improvement in MRP run with HANA
(both classic and MRP live), NETPL is a redundant one and the system can generate planned orders outside planning horizon.
Thanks to HANA platformJ. A new planning file (PPH_DBMV) replaced the old planning file entry tables MDVM/MDVL and
DBVM/DBVL to improve the performance in reading planning file entries.

Forecast based planning: Going forward with S/4 HANA Logistics, Forecast based planning will be moved out and the
suggested approach is to go with a normal MRP type PD, P1,P2,P3 or P4. As per SAP team thought process, Forecast based
planning approach is symmetrical to planned independent requirement maintenance table derived from statistical forecasting.
This may be true for finished product where PIR functionality used. But in some scenarios where PIR maintenance functionality
not used, Forecast based planning is a required functionality.

Graphical planning table for capacity evaluation: The classical graphical planning table has lot of disadvantages such as
complicated customizing, non-user friendly, not suitable for web-based environment, Capacity locking issues etc. With the
revised approach, a drag and drop approach has been used to change the start dates of the operations and resources. But there is
no major investment made to make it user friendly and also to make it a web based tool.
LIS replacement with a powerful HANA based platform: with a powerful UI s which will provide reports dynamically with a
multi-dimensional reporting. Once the production planning analytics reports are available, the LIS can be switched off which will
take out lot of redundant data, pre-aggregated data, locking conflict which in turn will improve the performance. Also LIS
supports with material number of 30 characters and SAP is not going to invest time in LIS anymore.

Heard in the beginning that APO component - PPDS (Production Planning and detailed scheduling) will be a part of S/4 HANA
logistics first version, but it looks like that SAP has postposed this task to the next release. With a major shift in SAP strategy to
match with digital transformation, there is a lot of learning required for the SAP professionals to enable the technology changes
to fit into the business needs.

 In SAP Note1914010 http://service.sap.com/sap/support/notes/1914010

 MRP Live has defined as follows:

MRP Live on HANA (MD01N) was implemented to improve MRP performance on HANA. This has been achieved by
implementing application logic in SQL-Script which runs on the database server. That is, the MRP transaction has been
completely re-implemented. This is a large project and the plan is to pursue a step-by-step approach: Every quarter, additional
planning features are implemented in SQL-Script. However, the aim is not to re-implement the complete scope that is currently
covered by the classic MRP transaction. The classic MRP run (MD01) also runs on HANA (parallel to MD01N) with exactly the
same functionality as on any other database.

All restrictions and comments were made based on SAP_APPL component in this note. Now I decided to see how it
will work with new component called S4CORE, because this component has Logistics and Financial db
simplifications and new code-line.

First of all I want to check if my materials are available or compatible for MRP Live. So I run the program
PPH_CHECK_MRP_ON_HANA

I have seen that all MRP related materials are subject to MRP Live.
Now it is time to tun MRP on HANA by MD01N

I have run for all Materials for plant 1000 (only 4 )

I really like the way it runs, on the left bottom, there is an information progress bar, shows the low-level calculation
code progress.

Once the MRP Run finished, Performance log appears: If MRP Levels button is clicked then detail log can be seen.

Stock/Requirement list is used to see the summary of the MRP Run.

 And the detail list shows the requirements and created PurReqs

Conclusion

MRP Live on HANA by S4CORE component is stable and runs well without any runtime errors despite logistics
simplifications.

1. ERP Manufacturing (PP)

2. …
3. MRP on HANA and S4HANA

MRP on HANA FAQ

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 Created by Caetano Almeida, last modified on Aug 22, 2016

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 Purpose
The purpose of this page is to answer the frequently asked questions related to MRP on HANA.

Overview
On this WIKI you will find the solutions to common issues, answers to frequently asked questions and references to notes
and documentation related to MRP on HANA.

 Purpose
 Overview
 Questions:
 On which release is the HANA performance optimizations for MRP available?
 On which release are the MRP Cockpit and the MRP Fiori Apps available?
 How can I activate the HANA performance optimizations for MRP?
 Can we run MRP on HANA using SAP HANA as a side car?
 Which scenarios are supported on MRP Live?
 Which notes should be considered when implementing MRP Live?
 How can I know which materials can be planned on MRP Live and which materials must be planned by Classic MRP?
 Why MRP Live sometimes is slower than Classic MRP?
 I cannot run MRP Live or the MRP Fiori Apps due to a short dump.
 During and upgrade I'm facing errors related to Hana content or database procedures that are used in MRP Live.
 Can MRP Live run lead-time scheduling?
 Why dependent requirements or sales orders are aggregated on the MRP List (transaction MD05)?
 Is there any MRP change on S/4 HANA?
 Why is the customizing activity to activate MRP and set up plannning files is missin on S/4 HANA?
 Can I use the MRP Fiori Apps and the MRP Cockpit without MRP Live?
 Which authorization is necessary to access the MRP Fiori Apps?

 Related Content

 Related Documents
 Related SAP Notes/KBAs

Questions:
On which release is the HANA performance optimizations for MRP available?
The performance optimization for the classic MRP transactions is available as of SAP enhancement package 6 for SAP ERP
6.0, version for SAP HANA and the MRP Live is available as of SAP enhancement package 7 for SAP ERP 6.0 (7 SP04 and
higher).

On which release are the MRP Cockpit and the MRP Fiori Apps available?
The MRP Fiori Apps are available as of SAP enhancement package 7 for SAP ERP 6.0
How can I activate the HANA performance optimizations for MRP?
MRP on HANA can be activated with business function LOG_PPH_MDPSX_READ.

Can we run MRP on HANA using SAP HANA as a side car?

No, HANA must be the primary database, in order to run the performance optimizations for MRP.

Which scenarios are supported on MRP Live?

SAP note 1914010 provides a list of the restrictions for Planning in MRP Live on HANA.

Which notes should be considered when implementing MRP Live?

SAP note 1989922 provides a list of all the relevant consulting, FAQ and corrections notes that must be read and
implemented when running MRP Live.

How can I know which materials can be planned on MRP Live and which materials must
be planned by Classic MRP?
See the blog Is your system prepared to take advantage of MRP on HANA?

Why MRP Live sometimes is slower than Classic MRP?

Note 2023766 explains which factors can influence the MRP Live performance.

I cannot run MRP Live or the MRP Fiori Apps due to a short dump.
If you are observing short dump AMDP_DBPROC_CREATE_FAILED CX_AMDP_DBPROC_CREATE_FAILED or any other
error that that imply that the deployment of some delivery units was not successful, you must follow the procedure described
on note 1907934.

If the short dump AMDP_OBJECT_NOT_FOUND is triggered, see also KBA 2346592.

During and upgrade I'm facing errors related to Hana content or database procedures
that are used in MRP Live.
If the errors are related to content that is no longer used in the support packages, they can be ignored. SAP
note 2015205 provides more details about the content relevant for each release.

Can MRP Live run lead-time scheduling?

Lead-time scheduling is only supported on MRP Live as of EHP8 SP1 or in S/4 HANA.
 Why dependent requirements or sales orders are aggregated on the MRP List
(transaction MD05)?
Note 2327795 explains the reason for this system behavior.

Is there any MRP change on S/4 HANA?

Some MRP scenarios were simplified, such as the source determination, subcontracting and storage location MRP. See
the S/4 HANA Simplification List for more details.

The blog https://scn.sap.com/community/erp/manufacturing-pp/blog/2016/03/18/mrp-simplification-on-s4-hana also provides

more information about MRP on S/4 HANA.

More information can be found on the following SAP Notes:

 2268085 S4TWL - MRP in HANA

 2268069 - S4TWL - Simplified Sourcing
 2226333 SAP S/4 HANA Simplification Item: Simplified Sourcing

Why is the customizing activity to activate MRP and set up plannning files is missin on
S/4 HANA?
This customizing activity is not relevand on S/4 Hana. See the blog below for more details:

http://scn.sap.com/community/erp/manufacturing-pp/blog/2016/04/27/mrp-on-s4-hana--planning-file-entries-customizing-
path-is-missing

Can I use the MRP Fiori Apps and the MRP Cockpit without MRP Live?
The MRP Fiori Apps can only be used if the business function LOG_PPH_MDPSX_READ is active. You can still use classic
MRP to plan your materials, but the business function must be active and the HANA database should be the primary
database.

Which authorization is necessary to access the MRP Fiori Apps?

You can find a list of the relevant authorization profiles on the wiki Roles to access the FIORI apps

Related Content
Related Documents
MRP on HANA: What's new?

Is your system prepared to take advantage of MRP on HANA?

Issues related to MRP on HANA.

MRP with SAP S/4HANA

Related SAP Notes/KBAs
SAP Note 1907934: MD01N: MRP Live on Hana procedures activation

SAP Note 1914010: MD01N: Restrictions for Planning in MRP Live on HANA

SAP Note 1989922: MD01N: SAP Notes overview

SAP Note 2015205: MRP Live/Apps - Relevance of Hana content for Support Packag

SAP Note 2023766: MRP Live/MRP Classic: Performance Information

SAP Note 2268085: S4TWL - MRP in HANA

SAP Note 2268069: S4TWL - Simplified Sourcing

SAP Note 2226333: SAP S/4 HANA Simplification Item: Simplified Sourcing

SAP KBA 2327795: MRP on HANA: Requirements aggregated on the MRP List

SAP KBA: 2346592: MD01N: Short dump AMDP_OBJECT_NOT_FOUND

Real-Time Value for Manufacturing powered by SAP HANA

What better way to highlight the impact and real-time value of SAP HANA for Manufacturing than by
takingMRP (Material Requirements Planning) - a process that is more than 30 years old - and completely
redefining it in terms of performance and user experience. To appreciate the potential impact, you must
be aware that MRP includes the 2nd most widely used group of transactions across all of ERP.

What is MRP?

In a nutshell, the purpose of MRP is to ensure that both customer and production demand are fulfilled on
time by avoiding any disruptions due to missing parts or materials. MRP matches actual and forecasted
demand against existing and planned supply and, by drilling-down through the bill of materials, generates
an optimal plan for creating and releasing purchase and production orders. Even though the concept
seems simple, having a large number of raw materials, sub-assemblies, sub-components and parts,
introduces a level of significant complexity making it very difficult for a Material Planner to manage.

How is MRP performed today?

The complexity described above has an impact on the amount of time it takes to execute the MRP
planning run. Reading and aggregating thousands, if not millions, of data records spread across multiple
tables in the ERP system, takes a long time. Hence, the MRP planning run typically needs hours to
complete and requires exclusive access to the data. It is therefore, in most cases, run outside of business
hours, over the night or over the weekend.

The long execution time of the MRP planning run creates another problem: the generated results are just
a snapshot of the demand-supply and material situation at the time of the run. As soon as the material
situation changes, the MRP results become outdated immediately. In addition to the challenge of working
with an outdated snapshot, the Material Planner has to use multiple ERP transactions to manage material
shortages, and for each shortage, multiple transactions are needed to complete the solution (see Figure
1).

Figure 1: The MRP process before HANA

The main responsibility of a Material planner is to ensure the right materials are in the right place at the
right time so that customers receive their orders on time. How can he achieve this in real-time with those
limitations of using an outdated snapshot and complex user interface? If planning decisions are often
based on incomplete, inaccurate and often outdated supply chain information, the results are delayed
responses, wrong decisions and negative impacts to manufacturing execution. The process today is
inefficient and manually intensive.

How can SAP HANA help?

SAP HANA improves the efficiency of the MRP planning run by eliminating the long batch runs and
unnecessary aggregates with the ultimate goal of having real-time access to material data. Can we
achieve this for MRP? With SAP HANA, we can!

The MRP run has been improved over the last two decades in terms of performance, getting 10% or 20%
faster with each improvement. But those improvements never removed the need for batch runs,
replicated data and pre-computed aggregates. Now with SAP HANA, the performance has improved
several orders of magnitude, allowing the MRP planning run to be executed in real-time.

Figure 2: The MRP process with HANA

And what is the result? A Material Planner can now forget about running reports. Instead, he has
immediate and direct access, not to the data as it was at the beginning of the day or the end of last week,
but to the latest demand-supply situation in real time. The planning run can be now executed in minutes
or even seconds for a given material.
What about the user experience?

Redefining MRP is not only about improving the performance of the planning run; it is also
about introducing a completely new and transformational user experience for the Material Planner. In order
to change the game, the existing process has to be changed. SAP’s answer is the new Smart Business
for MRP (see Figure 3). The Smart Business for MRP is an example of the next generation of SAP Fiori
Apps and a perfect illustration of how these apps can recreate processes, even ones that are 30 years
old.

Figure 3: The new MRP Cockpit

Smart Business for MRP enables the Material Planner to monitor the material shortage situation and
solve issues on time and in real-time. He can ensure that sufficient supplies have been planned to cover
external requirements — whether for sales orders or stock transfer orders, for example. He can review
material situations and prevent and address material shortages before they happen.

The new Smart Business for MRP introduces new capabilities like the ability to view inventory position
across multiple plants or analyse component requirements with real-time analytics.

An example of this is the analysis of materials with shortages (see Figure 4). Traditionally, to identify
solutions to material shortages, several ERP transactions had to be executed, which were time
consuming in the past. In the new Smart Business for MRP, data is pulled in real time from all areas of
material management including procurement lead times, inventory stock availability, lot sizes,
manufacturing scheduling and sales orders across multiple sites. The system goes one step further and
suggests potential solutions for the shortage. By using HANA, each solution is evaluated in real-time and
the user can preview the potential viability and impact before accepting a solution.
 Figure 4: Insigt-to-action in the MRP Cockpit

Key takeaways?

The new MRP run powered by SAP HANA enable the MRP planner to have immediate and direct access to
the latest data in real time. The MRP Cockpit allows for quick and meaningful insights and enables the
MRP planner to take immediate action. Everything is now fast and simple!

“Simplify everything. Do anything.” – this was the key message from CEO Bill McDermot at the recently
ended SAPPHIRE 2014.

This is simplification at its best!

