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SHORT TERM PLANNING

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
18 Month Plan
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Balance the short-term capacity plan, based
on the balanced long term plan
Create a production schedule for the next
period
Communicate the new production schedule to
Execution
Create a material procurement schedule for
the next period
Communicate the new material schedule to
suppliers
Short Term Planning Process - Purpose
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Material Planning
and Scheduling
Production Planning
and Scheduling
Update Supply Parameters
Short Term Planning - Work Process Steps
Review demand / supply balance (0-3 months)
Resolve capacity issues
Sequence planned orders (inside PTF)
Adjust setup times (if used at your site)
Adjust planned orders to daily rate (if needed)
Create and publish production schedule
Review material schedule (Supplier scheduling)
Generate and distribute supplier schedule
report
Resources - intervals of available capacity,
efficiencies (if applicable)
Recipes - rates
Quotas
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UPDATE SUPPLY PARAMETERS:
Intervals of Available Capacity
Quotas, possibly time-phased safeties
Pay special attention to recipe rates (and efficiency rates
if used)
Run Automatic Leveling refresh program (resets quotas
and deletes SAF1 elements) if you are using it to do
balancing
These updates are typically done on Fridays before the
weekend MRP run and new Demand pass
Short Term Planning - Update Parameters
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EVALUATE/BALANCE PRODUCTION:
Evaluate demand/supply balance for weeks 0-13
Adjust intervals of available capacity, if
appropriate, to address key imbalances (e.g..
more shifts, weekends, flex teams, etc.)
Move orders manually, or run Automatic
Leveling, to resolve the majority of the capacity
issues (as applicable for your site)
Resolve remaining capacity issues according to
your operating strategy
Short Term Planning - Balance Production
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EVALUATE/BALANCE PRODUCTION TOOLS:
Capacity Evaluation Tool (Method A)
- Same tool used in Long Term Planning
- Use weekly view for shorter horizon
- Useful for evaluation and limited manual changes
Planning Table (Method B)
- Spreadsheet-style design
- Useful for evaluation and more extensive changes
- Useful for manual balancing across lines
Short Term Planning - Balance Production
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Short Term Planning - Balance Production
Evaluate Capacity - Weeks 0-13 (Method A)
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Short Term Planning - Balance Production
Planning Table (Method B)
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Balance Production - Planning Table
Planning Table
Flexible
period
splits
Alternate
version
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Balance Production - Planning Table
Planning Table
Double-click to view
individual orders
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Options to Resolve Capacity Issues
Move production to another line in the same
period
Move production to another period on the same
line (advance production)
Move production to another facility
- interplants or
- contract manufacturing
Add short term capacity
Evaluate safety targets
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Automatic Leveling in the Short Term Horizon
Run Auto Leveling Program
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Automatic Leveling
Summary of Weekly Capacity Adjustments
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Schedule Planned Orders
Objective:
Create a sequenced production schedule
which leads to corresponding material supply
schedule
Work Processes:
Sequencing orders inside PTF
If needed, break large orders into daily
If needed, adjust setup times
Creating a production schedule
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Sequence Planned Orders
Time
Sequencing / Scheduling Capacity Planning
A A C A C
B
M T W Th F S S M T W Th F S S
Downtime
Downtime A
B
C
A
B
A
C
PTF
There may be earlier weeks
already sequenced
A B
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Short Term Planning - GPT
Graphical Planning Table
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Sequencing Methods:
Manually dispatch each individual order
Assign sequence numbers to each order in the
selected period and then dispatch the entire
group
Automatically dispatch multiple orders at the
same time by using the Setup Group and Key
Automatically creating the optimum sequence
(least total setup time) based on setup times
defined in a setup matrix
Short Term Planning - Sequencing
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Manual Sequencing:
Use the dispatch button for the first order of the
week to assign the correct start time
Use the drag and drop method for subsequent
orders
To change the sequence, either de-allocate
orders or move them around within the Work
Center window
Short Term Planning - Manual Sequencing
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Assigning Sequence Numbers:
Select all of the orders that you want to dispatch
Pull up the Sequence Number Maintenance
screen
Assign numbers, from 1 to the total number of
materials sequenced, with 1 assigned to the first
item to be produced
To change the sequence assign different
numbers
Short Term Planning - Manual Sequencing
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Short Term Planning - Manual Sequencing
Assigning Sequence Numbers
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Short Term Planning - GPT Order Selection
Selecting Orders in the Graphical Planning Table
NOTE: The secondary orders in the
week should not be selected initially so
that they do not get grouped together
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Sequencing using Setup Group Hierarchy
SETUP ACTIVITIES:
A well thought out logic needs to be applied to the
Setup Group hierarchy to produce a good schedule
Setup Groups and Keys need to be configured
within SAP (plant specific)
These keys are then assigned to each recipe at
both the operation and phase levels
Materials are assigned to the recipes

Short Term Planning - Setup Groups
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Brand Code: 11111 22222 33333 44444

Flavor: Strong Very Strong Light Medium

Sequence #: 3 4 1 2

Potential Application:
Recipe Group: PXX01Z01 PXX01Z01 PXX01Z01 PXX01Z01
Recipe Number: 3 4 1 2

Setup Group Example:
Group COFFEE COFFEE COFFEE COFFEE
Key 030 040 010 020


In this simple example SAP will help you sequence codes in the following order:
33333 44444 11111 22222
OPERATING STRATEGY: Always go from Light to V. Strong to avoid washouts
VS
S L M
Sequencing - Setup Groups & Keys
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Sequencing using Setup Group Hierarchy
DISPATCHING LOGIC:
Select all orders within the desired time frame
When dispatching, the system will sequence first
by Setup Group and then by Setup Key in
numeric-alpha sort order (0 9, A Z)
Multiple orders for the same material in a given
week should not be selected at the same time. If
they are, the system will group them together to
run at the same time
If materials are selected and assigned to the same
recipe, the order of sequence is based on order #
Short Term Planning - Setup Groups
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Short Term Planning - Setup Groups
Assigning Setup Group and Key
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Sequencing using Setup Time Minimization:
Setup Groups and Keys need to be configured within
SAP, and setup times must be used in the recipe
formulas
A setup matrix must be maintained at the plant or
resource level, with values for every combination of
Setup Groups and Keys
The Setup Groups and Keys are assigned to the recipe
at both the operation and phase levels
Same techniques for order selection as defined in the
previous approach. The system will then create a
sequence which delivers the least overall setup time
Short Term Planning - Setup Minimization
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Short Term Planning - Setup Minimization
Selecting User Functions
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ADJUSTING SETUP TIMES (IF USING SETUP MATRIX):
Required after sequencing (or re-sequencing) and
utilizes sequence-dependent setup time information
Order setup time based on the prior and current recipe
Replaces any default setup times during dispatching;
thus, providing the most accurate order start/stop times
Requires on-going maintenance of setup matrices in
order to have the most accurate order durations
NOT needed if you don't maintain a matrix or use the
Setup Minimization procedure (built-in to function)
Facilitates MPS measurement
Changes the capacity utilization for the period
Short Term Planning - Setup Time Adjustment
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Default Setup Times:
Default setup times are average setup times for a
material on a specific resource
It is stored in the phase of the Recipe, Standard Values
It is utilized for the full planning horizon in order to
provide accurate capacity evaluation data
It is only changed by the Adjust Setup Time process
after orders are dispatched inside the PTF
It should reflect a 50/50 number to have accurate
capacity information outside the PTF
Short Term Planning - Setup Times
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Short Term Planning - Setup Times
Assigning Default Setup Times
Average setup time
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Setup Time Matrix:
Specific sequence-dependent setup times are stored in
a named table
Each resource must link to a given table, but tables can
be shared across resources if all values are same
Table keyed to: Plant; table name; predecessor group
and key; successor group and key
Each entry contains the specific setup time for that
changeover
Access is by report tree with certain restrictions
Tables can be quite large but view can be limited to
simplify maintenance
Short Term Planning - Setup Time Matrix
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Short Term Planning - Setup Time Matrix
Setup Time Matrix - Conceptual View
Size Rules
1 to 2 90
2 to 1 90
Formula Rules
1 to 2 15
2 to 3 15
3 to 1 60
3 to 2 60
2 to 1 15
1 to 3 60
These rules are used to
build the matrix above
To
Setup Time in Minutes 1 2 3 4 5 6 7 8
size 1 2 1 2 1 2 1 2
matl size formula 1 1 2 2 3 3 1 1
From 1 1 1 0 90 15 90 60 90 0 90
2 2 1 90 0 90 15 90 60 90 0
3 1 2 15 90 0 90 15 90 15 90
4 2 2 90 15 90 0 90 15 90 15
5 1 3 60 90 60 90 0 90 60 90
6 2 3 90 60 90 60 90 0 90 60
7 1 1 0 90 15 90 60 90 0 90
8 2 1 30 0 90 15 90 60 90 0
Material Numbers:
7777xx01 7777xx08
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Short Term Planning - Setup Times
SAP Setup Time Matrix
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Short Term Planning - Distribute to Daily Rate
Distribute to Daily Rate Technique
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Short Term Planning - Distribute to Daily Rate
Dispatched Orders after Distribute to Daily Rate
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Multi-level planning - Example
Make/Pack operation
A common multi-level planning
scenario
Only deals with different materials
within same location (plant)
Intermediate inventory exists
between make and pack operations
The connection between the two
levels are from the BOM explosion
Packing
Making
Intermediate storage
Supply Plan
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Multi Level Planning - Make/Pack operation
Making & Packing operations are de-coupled
- Making and Packing are both scheduled
- Intermediate inventories are created and can
be tracked for cost or regulatory purposes
If Making is a constraint, an iterative planning
process may be required
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Why do we have to plan Making?
Execution cannot create inventory without a
Process Order
A valid material schedule to the suppliers
requires proper batch scheduling
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Making Capacity Link to Packing Planners
Making Planners provide feedback to packing
planners regarding the making capacity
requirements/constraints
If one making system supplies just one packing
line, this is easier.
- The work process is the same for one or ten
packing lines tied to a single making system
The type of feedback depends on the time
horizon
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Making Feedback to Packing
Three Types
Outside the Packing PTF
- Monthly/weekly overloads should be visible well before Packing
is ready to do any sequencing.
- After looking at its options, Making asks Packing to revise their
schedule to balance the Making loads.
Inside the Packing PTF
- The Making daily load might become a problem (ie too much
large size on Wed/Thurs). Making asks Packing to revise their
sequence.
Last minute schedule changes
- Packing planners ask Making for feedback before any packing
changes are made.
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Making Planning Process
Balance Monthly/Weekly loads
Once Packing has been sequenced, balance the
daily Making load at the highest level (ie, Main mix)
Plan subsequent levels of Making, with an MRP run
required between each. This is particularly crucial if
a lower level is the constraint.
The supplier schedule is an outcome from all of the
above steps
Publish the Making schedule
Convert Process Orders
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Impact of Packing Changes to Making
Making normally does not use a Planning Time
Fence (MRP Type is M0)
Because of this, an increase in the Packing
schedule will result in new, mrp-generated
planned order(s) for Making the next day
Any new orders will be placed on the date(s)
needed to support the Packing schedule,
including days that have already been
scheduled/sequenced by Making!
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Short Term Planning: Smartplanner Overview
P&G Supply Chain Product Designed to Supplement
SAP R/3 for Detailed Planning and Scheduling
95% of Supporting Data Comes From SAP
Developed With AspenTech Software Application
(Supply Chain Manager, SCM)
Distributed Application That Runs on a Planners PC.
Results Backed Up and Saved on a Central Server
Two Variations:
- Lite automated sequencing and decision
support
- Full includes Linear Program Optimizer for the
generation of a constrained plan

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Short Term Planning: Smartplanner Planning Board
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Short Term Planning - Production Schedule
The last step in the Short Term Planning work
process is to generate a production schedule
- Frequency and period covered are plant
choices
- The schedule lists each process order and
planned order to be run, including quantities,
times etc.
- Schedule can be generated by resource or
resource groups and downloaded to Excel
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Short Term Planning Production Schedule ZPRS
There are several production schedule transactions available.
ZPRS is preferred in the PSC (shown above).
It is owned by the PE Row.
Can display both production and purchasing data (CM).
MENU PATH: SAP Menu P&G Report Menu Production
Execution ZPRS - Production Schedule Report
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Short Term Planning - Summary
Shift focus from superior resource in monthly
buckets (long term) to individual resource in
weekly buckets (short term)
Short term planning includes:
- Capacity planning and balancing
- Production scheduling: Sequencing and
adjusting setup times
- Supplier scheduling
Set up the foundation for daily planning and
execution