Is it Possible to Use DP and PP/DS Without SNP?
- SAP Planning Page 1 of 14
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Is it Possible to Use DP and PP/DS Without SNP?
by Shaun Snapp on April 24, 2015
What This Article Covers
Some companies prefer not to use a supply planning application, as their supply network is relatively
simple.
The implications of using PP/DS and DP without SNP.
Background
There is a standard flow to APO with respect to demand, supply and production planning. The flow is the demand
plan is released to SNP, which is then released as a supply plan to PP/DS. However, ever APO module that is
implemented takes effort, time and money and of course maintenance. What was recently proposed to me was to
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implement DP with PP/DS, but without SNP. Its not hard to consider how the flows between the ERP system,
DNP and SNP would appear, as I have shown below.
PP/DS’s Supply Planning Capabilities
Secondly, there are capabilities that PP/DS has that do cover supply planning.
PP/DS generally has a short planning horizon. However, the planning horizon is flexible, as can be seen in the
screen shots below:
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This is the PP/DS tab in the Product Location Master in APO. Notice that the PP/DS Planning Time Fence field
as well as the PP/DS Horizon field are available to be set by the user.
Secondly, on the Characteristic Based Deployment tab, deployment — a supply planing function and typically
performed in SNP, can be performed from within PP/DS.
Here is another setting called the Time Profile.
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This allows the planning period to be setup automatically from within the Detailed Scheduling Planning Board.
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This is a default time profile that can also be changed from within the DSPB.
Storage and Planning Buckets
PP/DS plans in daily buckets. That it does not have the flexibility to use different planning buckets and
storage buckets that DP and SNP do have. Here you can see in SPRO where the planning bucket profiles are
set (the buckets that are shown in the Planning Book) that there is no planning bucket profile for PP/DS.
Long Time Horizon Planning
When SNP is used, often a telescoping Planing Book is configured. You can read about how to configure this
type of Planning Book in this article. I quote from this article below:
It is a frequent request at different clients is to provide a telescoping view of the Planning Book. This
means that they want to see the Planning Book in days, then in weeks, and then in months, and they
want to specify how many periods they would like to show each (7 days, 14 weeks, 16 months etc.).
In order to do this its necessary to perform configuration of the Time Bucket Setting. Unfortunately
SAP does not ship with a standard telescoping Time Bucket Setting, so it must be created anew
for each company during implementation.
This telescoping has several advantages. First, the planner does not need to see a fine level of detail out further in
the planning horizon. Secondly, by using a more appropriate level of granularity for most of the planning horizon,
this cuts down on processing time.
The Storage Bucket Profile is assigned to the Time Bucket Profile, which is then assigned to the Planning Book.
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Here are some of the standard Storage Bucket Profiles.
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Here are some of the Time Bucket Profiles. Notice that the Storage Bucket Profile is assigned to the Time Bucket
Profile.
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Finally the Time Bucket Profile is assigned to the Planning Book.
Therefore, the problem is that PP/DS does not come with the same flexibility with respect to how the granularity
of its planning can be controlled. This is a long way of demonstrating that PP/DS is not designed to run a long
range horizon — of course it can do it as is demonstrated by the earlier settings that showed the planning horizon
of PP/DS is controllable. However, PP/DS is designed to plan at a fine level of detail for its overall horizon.
Purchase Requisitions
PP/DS creates Preqs as does SNP. PP/DS uses the procurement type which is on the Procurement Tab of the
Product Location Master the same way that SNP does to determine whether to create a Purchase Requisition or a
Planned (Production) Order in response to a requirement.
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Procurement Type (F – Ext Proc, E – In House Prod, X – Either, P External Procurement Planning)
Lot Sizing
The lot sizing settings apply to both SNP and to PP/DS. Therefore, if a Fixed Lot Size is set for 25,000 units, then
this lot size applies to both PP/DS and SNP.
SNP Functionality
So while there is considerable overlap in the settings used by SNP and PP/DS, there are, naturally several things
that SNP does that PP/DS does not do — and this is the problem with using DP and PP/DS without SNP in the
middle.
This includes, but is not limited to the following:
1. Forecast Consumption: Forecast consumption is the decrementing of forecasts by sales orders. Optimally
speaking, a forecasting is only a placeholder for a sales forecast. Forecast consumption prevents both the
forecast and the sales order from being used to drive supply. The purpose of backward and forward forecast
consumption is to reduce or remove the natural tendency to over order when consumption only occurs in
one period. This is explained in the following article. PP/DS has no ability to perform forecast consumption
— while SNP does do forecasting consumption. Therefore, the options if SNP is out of the implementation
is to perform forecast consumption in ECC, and this means that the forecast is sent to ECC rather than to
SNP.
2. Receipt of the Forecast: The natural flow in APO is releasing the forecast from DP to SNP. Therefore,
there is no transaction which releases the forecast to PP/DS. This means that if SNP is left out of the
equation that some custom method must be created to drop the forecast directly from DP to SNP.
Conclusion
Given the restrictions listed above, it is difficult to recommend going without SNP, if one is using DP and
PP/DS.
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About Latest Posts
Shaun Snapp
Shaun Snapp is a long time supply chain planning software consultant, author & as well as the Managing
Editor at SCM Focus. He focuses on both SAP APO as well as best of breed applications for demand,
supply and production planning.
Latest posts by Shaun Snapp (see all)
Is it Possible to Use DP and PP/DS Without SNP? - April 24, 2015
Fixing Settings in the Planning Area in SAP APO - November 19, 2014
Aggregated Statistical Forecasting in SAP DP - November 15, 2014
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