SCM Consulting Solutions by SAP

Lean Manufacturing Planning & Control (LMPC)

PUBLIC
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Agenda

1. The Solution: Lean Manufacturing Planning and Control

2. Details of Lean Manufacturing Planning and Control

3. FAQs related to Lean Manufacturing Planning and Control

4. Roles, Processes and Horizons around Lean Manufacturing Planning

and Control

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SAP SCM Consulting Solutions (SCM CS): Overview

SAP SCM Consulting Solutions (CS) are …

 More than 40 interface-free add-ons for planning in ECC, S/4HANA, APO and IBP
 developed by SAP Consulting together with customers
 provided to other customers
 maintained by SAP
 Enhanced in a yearly release cycle
 can be used for various planning approaches (Lean, Demand Driven, Theory of Constraints, …)
 designed to be used together with SAP license products
 used at hundreds of customers wordwide
 …

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 Concept of the SCM Consulting Solutions of SAP

Customer SAP SCM Consulting Solutions

Business Requirements
Projects

SAP Framework

SAP Consulting  Add-Ons (no interface!) to SAP Software like

SAP ECC, S/4HANA, APO and IBP
 Available for all customers
 Maintained by SAP
 Option to co-innovate with SAP
 Extendable by customers through various
embedded options (BAdIs, Exits, Enhancement
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points, …) 5
The solution: Lean Manufacturing
Planning & Control (LMPC)
 Concept: LMPC is directly embedded into SAP ERP
without any Interface

SAP ERP (ECC resp. S/4HANA)

Simulation Environment SAP

 SAP Master Transactional
Data Data (created
Real Real
LMPC by any
 Customer- Time Time
approach like
specific data (if
MRP,
needed)
KANBAN, …)

 Usage of SAP Master Data

 Usage of SAP transactional data like planned orders, production orders, process orders, plant maintenance orders, networks, service orders
 Consideration of data coming out of an Manufacturing Execution System (MES; if available in SAP, e.g. confirmations, …)
 Changes in SAP data are immediately reflected in LMPC
 Planning data created in is immediately visible in other SAP transactions (MD04, …) after confirming simulation results

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Details: Lean Manufacturing Planning and Control
Comprehensive Functions
Lean Manufacturing Detailed Scheduling
 Enhancement of graphical planning table via tabular planning table, with
 Levelling (Heijunka) with own transaction
available data providers to access to all relevant data (more than 1000

fields)

 Production Schedule (Rhytm Wheel) (optionally  Chart to visualize capacity usage and inventory over time

 Full control for all types of mfg. orders:

based on EveryPart Every Intervall (EPEI))
 Action Codes for Sequencing, Scheduling & Rescheduling, …

 Action Codes for the execution of SAP standard functions like order
conversion, ATP checks, …
 Integration of detailed scheduling and Kanban
 Capacity & component availability (multi-level order link)

 Alerts and other means for visualization of conflicts in planning

 Background Scheduling

The Consulting Solution LMPC is an Add-On that can be used for an integrated lean AND traditional
detailed scheduling approach. Therefor it combines the best of two worlds – Push & Pull.

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Key Terms to Understand LMPC: Embedded Interactive
Planning in a Single Planning Transaction
PopUp Chart to
visualize
 Utilization
Graphical
 Multi-Level
Planning
Order Linkages
Table
 Stock
development

Tabular
Planning
Table

Background Planning can also be used in LMPC

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Key Terms to Understand LMPC: Data Providers

SAP ERP (ECC resp. S/4HANA)  Order Data (planned

orders, production
orders, process orders,
 Material Master
Simulation Environment plant maintenance
orders, networks,
 Routing service orders
BOM

Real Real  Operation Data incl.
Work Center LMPC Capacity requirements

Time Time
 Production Version  Stock/requirements
list data
 …
 Demand-Driven
Planning data
 …

Data Provider Framework:

Usage of flexible data gathering options in a given framework to reduce the effort
while increasing flexibility and reducing performance impact

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Key Terms to Understand LMPC: Action Codes

LMPC

Action
Codes

Foundation: Data gathered by LMPC  In standard more than 1000 pieces of information
(columns) coming from SAP standard are available
Action Code can be executed individually and combined:
Action Code Framework: More than 80 predefinied action codes for
 In the background
 Scheduling/Rescheduling
 Interactively (buttons, right-click)
 Sequencing
 Automatically in drag&drop planning
 Backlog resolution
 During data load
 Order Processing
 During refresh
 Visualization
 During save
 …
 Double Click
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…
Key Terms to Understand LMPC: Alerts

LMPC

Alerts Conditional
Formating

Foundation: Data gathered by LMPC  In standard more than 1000 pieces of information
(columns) coming from SAP standard are available

Alert Framework:
Usage of flexible alerting options in a given framework to enable an exception-
based planning approach (both based on background planning or interactive
planning)

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Key Terms to Understand LMPC: Multi-Level Order
Linkage

LMPC

Order
Linkage

Foundation: Data gathered by LMPC  In standard more than 1000 pieces of information
(columns) coming from SAP standard are available

Order Linkage Framework:

Consideration of Multi-Level Dependencies for feasible planning considering
material availability

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Key Terms to Understand LMPC: Lean Framework

Master Order
Scheduling
Data Generation

• Every Part • Lean Detailed

Every Interval • Levelling Scheduling in Heijunka
 Production • KANBAN Planning Board using
Schedule push or pull (e.g.
Demand-Driven)
foundation based on
• Production
Schedule
• Leveling
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Key Terms to Understand LMPC: Extensibility

Adjustments to data providers, action codes, alerts, … can be made by

 Profile configuration
 Customizing
 Additional logic by using ABAP coding (can be realized without SAP because
the framework is designed accordingly)
 Co-innovation (development executed by

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Optimized Materials Planning with SCM CS: Overview

Framework

Strategic Inventory Dynamic Buffer Materials Post- Capacity

Prep Forecasting Execution Controlling
Positioning and Lot Sizing Planning processing Planning

 SCM Consulting Solutions to manage optimized materials planning in SAP

Simulation Safety Stock Advanced MD04

MRP Monitor

Replenishment Lead
Time Monitor
Lot Size Simulation

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Integrated Use Case Example: Lean Manufacturing Planning and Control with
SAP IBP

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The Solution: Lean Manufacturing Planning and Control – Price

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Details of Lean Manufacturing
Planning & Control (LMPC)
Lean Manufacturing Planning and Control - Details

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Lean Manufacturing Planning and Control - Details

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Lean Manufacturing Planning and Control - Details

Challenge:
Demands of manufacturing goods vary over time and result in inefficiencies:
 Bull-Whip Effect
 Fluctuations on lower levels of BOM
 Efficient use of capacities is not possible  causes short term ad-hoc reaction instead of long term optimization

Solution:
 Levelling of replenishment items enables production to be more smooth and efficient
 Fluctuations on lower levels of BOM are levelled as well
 Minimization of Bull-Whip-Effect and inventory levels

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EPEI – background and idea of the approach

 Target:
 Minimize order quantities by multiple setups as long as capacity utilization can be increased
 Result:
 Smaller order quantities  more flexible production  less fluctuation in material flow  less WIP /
stock
Product A Product A

Interruption / Maintenance

ST
Setup Time Product B Product B

Time Time
D A
Techn. availability

Cycle / Setup Time Stock Level Stock Level

EPEI

Product A

4 material numbers
Cycle Time ST ST Product A

C B Product B

Product B
ST
Time Time

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Result of EPEI (optional)

Capacity Values

Result Overall-
EPEI

< or = 1: Result ABC / Target-EPEI on material

capacity XYZ Analysis level
utilization is
feasible
Target EPEI

Sequence number (manual)

 White fields are filled with default values, but can be changed if needed (exception: EPEI / check value)
 EPEI value on material level is entered by target EPEI
 Pressing ENTER results in re-calculation of values

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Lean Manufacturing Planning and Control - Details

 New master data: production schedule assigned to production line and production groups (blocks), comprising 1-n
materials
 Assembly groups can be assigned per plant and production line, entering start / end time per day
 Changeover times can be minimized in advance, using the ideal sequence of materials

Definition of Production Schedule

Production group for line time monday tuesday wednesday thursday friday saturday sunday
Fertigungsgruppe
1-n materials 06:00
07:00
08:00
09:00
material E
material A material A

(for orders with date)

(for orders with date)

10:00
material F
Free capacity

Free capacity
11:00
production line 1

12:00 material B material B

13:00
material G
14:00
material material
Definition start - end per 15:00
16:00
C&D C&D
Planned Maintenance

production group 17:00

(block) 18:00
19:00
20:00
21:00
22:00

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Lean Manufacturing Planning and Control - Details
1: Creation of assembly groups

2: Definition of blocks – assignment of production groups per weekday

3: Definition of start / end-times and planning restrictions

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Lean Manufacturing Planning and Control - Details

4: Complete view of production schedule:

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Lean Manufacturing Planning and Control - Details

View multi level order relations within LMPC Chart with corresponding highlighting of issues

Order selection
out of LMPC grid
Order selection
in Chart Viewer
Issues are
highlighted

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Lean Manufacturing Planning and Control - Details

Enablement of Demand-Driven Scheduling in LMPC using the Demand-Driven Planning Framework of SAP SCM
CS

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 LMPC in Combination with IBP
Process Map

Visibility, Alert, Analytics

M
Sales and Operations Planning
Executive
Demand Supply Pre-S&OP
S&OP
Review Consensus Review Constrained Meeting Final Consensus
Demand Demand
Meeting
Demand

Demand Planning Inventory Planning Response & Supply Planning

W Demand W Supply &
Global Supply Plan
Planning Demand
W Inventory Allocation Pl.
Safety Allocations
Optimization Stock
D Demand Sensed D Response
Sensing Order
Demand Planning Conf.

Local MRP
LMPC
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Frequently Asked Questions (FAQs)
FAQs SAP SCM Consulting Solutions

Question: We saw the term SAP SCM Consulting Solution (SCM

CS) related to this solution. What does that mean? Where can I get
more information on SCM CS in generell?

Answer: A consulting solution is a tool that was developed by SAP

Consulting together with customers in various SAP optimization
projects. These tools are designed generically, so that other
customers can get the tools as well. The SCM CS are tools focused
on supply chain management and inventory optimization/service level
assurance. For more information please visit the SAP Help Portal or
contact us using the adresses provided in this presentation.

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FAQs SAP SCM Consulting Solutions

Question: We saw that there is something called comprehensive

framework connected to SAP SCM Consulting Solution (SCM CS)
and to this solution. What does that mean? Where can I get more
information on this?

Answer: more than 40 consulting solutions are available in the area of SCM. All
ERP (ECC; S/HANA) related tools share some comprehensive functions.
Examples are*: advanced navigation profile, measures/resubmission
date/comment functionality, master data update, consumption analysis based
on material documents, enhanced master data views, master data update
functionality, … . For more information please visit the SAP Help Portal (see
slides at the end of this presentation).
* Not all functionality is applicable in all tools depending on the underlying use cases.

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FAQs SAP SCM Consulting Solutions

Question: Is this tool a modification? Any specific customizing

needed?

Answer: No, this tool is an add-on provided by SAP Consulting. There

is no need for specific customizing in the SAP standard system, but
the tool offers various options to be customized in IMG.

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FAQs SAP SCM Consulting Solutions

Question: How difficult is it to implement this solution? How long

does it take? What are typical steps?

Answer: The technical implementation of this usually does not take more than 1 day. After signature SAP
will send out a so-called technical requirement sheet (TRS) where you can name all contact persons and
installation numbers. After SAP received this TRS back you will receive a download link where you can
download the transportation files and documentations.
You can then import the files to your system environment, in parallel an OSS ticket must be opened
related to component xx-proj-con-tec.

SAP will execute an import check, if everything was imported successfully you can transport the tool
through your environment/import it to the other systems of the landscape.
You can then schedule a knowledge transfer session with SAP to be enabled for productive usage.

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FAQs SAP SCM Consulting Solutions

Question: Will this tool work after an upgrade to a new release or the
import of a support pack?

Answer: SAP Consulting provides support in case of issues related to

upgrades of the underlying SAP ERP system (ECC, S/4HANA).
Prerequisit is a valid upgrade contract for this tool.

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FAQs SAP SCM Consulting Solutions

Question: Are the SCM CS being developed further?

Answer: Yes, there is a yearly upgrade process. Each customer

having a valid SCM CS upgrade agreement with SAP for a specific
tool can upgrade to a new version, which consists all possible
developments made together with customer during the release cycle
and SAP internal development.

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FAQs SAP SCM Consulting Solutions

Question: We think this consulting solution might be interesting for

us. But we are missing some important feature. Is there anything we
can do to enhance this solution?

Answer: In generell, the SCM CS can be enhanced. You can send us a description of your requirements.
SAP will analyze it and get back to you with possible next steps.

In this way, it is possible for customers to influence the further development of these SAP services and
thus influence an SAP maintained service in their own sense, in order to follow a future-proof path of
providing planning functions. More details are available here:
https://launchpad.support.sap.com/#/notes/2460521/E

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FAQs SAP SCM Consulting Solutions

Question: I heard that it is possible to get support from SAP

regarding a business case calculation around MRP Monitor. Is this
correct? Can you please tell me more about this?

Answer: Yes, SAP offers the inventory optimization assessment,

which is a service that enables you to get insights into possible
savings connected to the usage of consulting solutions. For more
information please visit www.sap.com/scmcs and click on the app
inventory optimization assessment.

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FAQs SAP SCM Consulting Solutions

Question: I heard that there is a platform available called Inventory

Optimization Academy (IOA). Could you please elaborate a little bit
on this?

Answer: Inventory Optimization Academy (IOA) is a knowledge sharing and interaction platform offered by
SAP for upgrade customers in the area of inventory optimization services. These offerings are free of
charge for all upgrade customers of SCM CS.

The idea is to provide a platform on which customers can participate in knowledge sharing events around
SCM CS like classroom or remote trainings. Additionally, it is possible to request expert consulting
sessions (remote) for topics around SCM CS or to interact with SCM CS Solution Management on
Roadmap topics and possible enhancement ideas. For more information please visit
https://launchpad.support.sap.com/#/notes/2460256/E and
https://launchpad.support.sap.com/#/notes/2460544/E.

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FAQs Lean Manufacturing Planning and Control

Question: We are planning to upgrade our SAP ERP to S/4HANA.

Will LMPC work after the upgrade?

Answer: LMPC can be used in S/4HANA environment as well. For

limitations please see note 2563574.

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FAQs Lean Manufacturing Planning and Control

Question: Which processes can be executed with LMPC?

Answer: LMPC offers support for a large variety of processes like

leveling, sequencing, (re-)scheduling, backlog resolution, exception
handling, order conversion, shop floor execution, …

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FAQs Lean Manufacturing Planning and Control

Question: What kind of scenarios or industries can be planned with

LMPC? Do I need a specific industry solution?

Answer: LMPC can be used in discrete industries with planned and

production orders, in process industry with planned and process
orders, in repetetive manufacturing with planned orders, in plant
maintenance scenarios with PM orders or in project planning
environment with networks. Prerequisit is that capacity requirements
are created for the objects. No specific industry solution is required.

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FAQs Lean Manufacturing Planning and Control

Question: Do I need to establish an interface for master or order data

to be able to extract data to LMPC? How often can I send data to
LMPC, so how actual is the data used? Is the handling of the
interface cumbersome and costly?

Answer: LMPC is an add-on based in SAP ERP (ECC or S/4HANA),

so no interface is needed. The data stored in the ERP system is
directly used by LMPC without any interface, so I can use and update
in ERP in real time.

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FAQs Lean Manufacturing Planning and Control

Question: Can I use predefined planning algorithms in LMPC? If I do

need a specific planning logic, would it be possible to adopt LMPC?

Answer: LMPC offers various planning algorithms in the standard

called action code. Customers can use numerous options to influence
the behavior from simple parametrisation to customer specific
planning logics based on bespoke action codes.

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FAQs Lean Manufacturing Planning and Control

Question: We have numerous capacity planning related profiles

defined in our system. Can we reuse them? Do we need specific
master data?

Answer: Yes, LMPC is based on the overall profile used in SAP ERP,
you can reuse and extend these settings. You can also reuse existing
SAP ERP master data as LMPC as an add-on is based on SAP
standard.

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FAQs Lean Manufacturing Planning and Control

Question: Can we plan based on limited capacity with LMPC?

Answer: Yes, LMPC offers functionality that considers capacity

constraints (finite scheduling).

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FAQs Lean Manufacturing Planning and Control

Question: Can we plan based on multi-level dependencies with

LMPC?

Answer: Yes, LMPC offers functionality that considers multi-level

dependencies using dependent demands resp. order reservations.

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FAQs Lean Manufacturing Planning and Control

Question: Capacity evaluation like in transaction CM01 is important

during detailed scheduling. Is it true that I do not need to evaluate the
capacity utilization separately? Can this be done directly in the
planning table? If I see that the rescheduling causes issues, is it
possible to discard the changes?

Answer: Yes, LMPC offers a capacity utilization overview over time for the
scheduling horizon directly embedded into the planning table. If you have
changed quantities or dates you can discard the changes without saving.

For a mid- to long-term capacity utilization overview please see also SCM CS
Capacity Requirements Planning Cockpit (CRP) in SAP Help Portal.

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FAQs Lean Manufacturing Planning and Control

Question: We would like to see directly the impact of rescheduling an

order on inventory position. Especially we would like to see shortages
caused by the new dates of a rescheduled order. Is that possible in
LMPC? If I see that the rescheduling causes issues, is it possible to
discard the changes?

Answer: Yes, LMPC offers an inventory position overview over time for
the scheduling horizon. If you have changed quantities or dates you
can discard the changes without saving.

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FAQs Lean Manufacturing Planning and Control

Question: We need a sequencing functionality. Is this available in

LMPC?

Answer: Yes, LMPC offers a large variety of sequencing functionality

like drag & drop options in the graphical and tabular planning table,
simple sorting and filtering, set-up matrix (in discrete industries),
rhythm wheel/time table/production scheduling, …

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FAQs Lean Manufacturing Planning and Control

Question: We need to know in detailed scheduling whether an order

is delayed or not. Is this something we can see in LMPC?

Answer: Yes, LMPC offers an alerting functionality to enable users to

identify possible delays.

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FAQs Lean Manufacturing Planning and Control

Question: We saw that LMPC can also be used on shop floor level.
How does that look like?

Answer: Yes, LMPC can be used on shop floor level as well. Via
separate shop floor profiles you can set up LMPC that way that the
planning options are disabled and hidden, the shop floor employees
would only see order information. From LMPC result screen it is
possible for them to jump into the information stored in the system or
to release or confirm orders. So LMPC can be used as operating tool
for shop floor terminals as well.

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FAQs Lean Manufacturing Planning and Control

Question: Is LMPC capable of considering component availability?

Answer: Yes, LMPC has various options to consider component

availability. You can execute ATP checks or visualize statuses during
planning to enable the user to create a feasible plan.

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FAQs Lean Manufacturing Planning and Control

Question: Can we resolve backlog issues with LMPC?

Answer: Yes, LMPC offers planning algorithms that allow you to

resolve backlog issues.

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FAQs Lean Manufacturing Planning and Control

Question: Is LMPC capable of considering multi-level dependencies?

Answer: LMPC offers a functionality called pegging which connects

demand elements (e.g. sales orders, dependend demands, …) with
receipt elements (e.g. planned orders, production orders, process
oders, …). This allows you to see alerts based on delays.

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FAQs Lean Manufacturing Planning and Control

Question: Can we plan tooling capacity with LMPC?

Answer: Yes, tools can also be planned in LMPC. For this a specific
master data scenario is needed.

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FAQs Lean Manufacturing Planning and Control

Question: Can we execute workforce scheduling in LMPC?

Answer: Yes, LMPC can be used based on qualification in

routing/production order.

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FAQs Lean Manufacturing Planning and Control

Question: What does the term lean in the name of the tool mean?

Answer: LMPC is a combination of classical detailed scheduling

aspects with lean functionality. In the lean area it offers options like
EPEI (optional), levelling, rhythm wheel/time table/production schedule
and the integration of KANBAN elements created in SAP ERP.

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FAQs Lean Manufacturing Planning and Control

Question: The Every Part Every Interval (EPEI) approach, is that also
part of LMPC?

Answer: There is a Consulting Solution available called EPEI that

enables customers to execute an EPEI calculation. That is a separate
solution. If you have LMPC together with EPEI in place you can utilize
the results calculated by EPEI using a dedicated planning algorithm in
LMPC. Please visit the SAP Help Portal for Details on SCM CS Every
Part Every Interval (EPEI).

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FAQs Lean Manufacturing Planning and Control

Question: We would like to execute detailed scheduling in the

background. Is that possible with LMPC?

Answer: Yes, LMPC offers a large variety of planning algorithms that

can be executed in the background. Alerting can then be used in
interactive planning to identify potential issues because of delays or
component availability.

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FAQs Lean Manufacturing Planning and Control

Question: We need an overall solution for capacity planning including

master data optimization, mid- to long-term capacity utilization
evaluation and KPI calculation. Is that possible with LMPC?

Answer: LMPC does not offer advanced master data analysis and
maintenance functionality. It is possible to use action codes to jump
into transactions like MM02 (Change Material), but there is no
sophisticated mass analysis of master data or KPIs of the past. For
this you can have a look at the SCM CS Capacity Master Data Monitor
(CMM) and at Production Controlling Cockpit (MLM) in SAP Help
Portal.

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FAQs Lean Manufacturing Planning and Control

Question: We need a simulation functionality in detailed scheduling?

Can LMPC support this?

Answer: Yes, the planning tables in LMPC are based on simulation

sessions. That means that a lot of actions executed in the planning
table happen only in the simulation session, you can discard the
changes without saving them to the database in case you are not
satisfied with the results.

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FAQs Lean Manufacturing Planning and Control

Question: Can LMPC used to support the Demand-Driven Rhythm

Wheel functionality (combination of DDMRP and Rhythm Wheel)?

Answer: Yes, this is possible. The different consulting solutions in the

area of Demand-Driven Planning and LMPC are specifically designed
to support Demand-Driven Rhythm Wheel Scheduling. There is a
SCM CS package available for this approach.

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FAQs Lean Manufacturing Planning and Control

Question: We would like to combine a selection of orders and treat

them together in planning. Is that possible in LMPC?

Answer: Yes, LMPC offers pool planning functionality to combine

operations for planning purpose.

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FAQs Lean Manufacturing Planning and Control

Question: I´ve analyzed the documents provided in the web. This tool
sounds interesting. What can be a reasonable next step?

Answer: Please contact us using the contact data provided in this

presentation. We can schedule a web-demo or a trial access to one of
SAP´s demo systems.

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Roles & Processes
Process Embedment of SCM CS in the Area of Planning
CTC LMPC MLM

Supply Chain Controlling

Sales Order Capacity

Processing Planning
Rough Cut Materials
Execution
Planning Planning
Demand
Purchasing
Planning

Master Data

Comprehensive Framework
CMM CRP
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Roles Overview and Assignments of SCM CS
Demand Planner Strategic Capacity Planner
Master Data Role Strategic Materials Planner
Executes statistical forecasts, Executes rough cut capacity
analyzes forecast accuracy, planning (mid- to long-term), Decides on MRP policy,
Maintains master data objects decides on settings for decides in case of capacity analyzes KPIs, adjusts rules,
for planning (e.g. materials, forecasting, adjusts forecasts, shortages, … ….
routings, Bill-of-materials, work plans promotions, ….
centers, shifts …)

Planning Manager Operational Materials Planner

Analyzes KPIs, decides on Analyzes MRP results,

processes exceptions, decides
tactical and strategical
questions around planning, .. on priorities, converts orders,
…

LMPC
Planning Controller Strategic Purchaser

Sets up planning controlling, Searches for new suppliers,

analyzes KPIs, reports issues Interacts with suppliers to sign
identified based on KPIs, .. contracts/scheduling
agreements, …

Shop Floor Employee Operational Purchaser

Detailed Scheduler
Executes planned production, Converts purchase reqs,
creates confirmation, reports Executes (re-)scheduling, creates purchase orders,
unplanned downtimes, … Sequencing, resolves backlog interacts with suppliers in case
issues, decides on priorities, … of urgently needed supply, ..

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Horizons in Capacity Planning with SCM CS
CMM

LMPC CTC
MLM

Execution
Backlog

Short Term Mid- to Long-Term

Time
Today

CRP

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More Information on SCM CS needed? Or click here:

Please visit: LMPC Landing Page

or send us an email: [email protected]

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More Information on SCM CS needed? Or click here:

Please visit: MRP Monitor Landing Page

Or send us an email: [email protected]

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Thank you.
Contact information:

[email protected]
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