Production Planning with SAP S/4HANA
2nd Edition
Published on 23. September 2021
Book
Hardback
1092 pages
978-1-4932-2167-7 (ISBN)
Description
Streamline your production planning process with SAP S/4HANA! Get step-by-step instructions for configuring and using SAP S/4HANA for discrete, process, and repetitive manufacturing. Then dive into production tools and functionalities like batch management, S&OP, predictive MRP, DDMRP, and the Early Warning System. This foundational guide is full of industry examples to help you maximize your production planning!
Highlights include:
1) Discrete, process, and repetitive manufacturing
2) Batch management
3) Sales and operations planning (S&OP)
4) Demand management
5) Demand-driven replenishment (DDR)
6) Material requirements planning (MRP)
7) Predictive MRP
8) Long-term planning
9) Capacity requirements planning
10) Early Warning System
11) Reporting and analysis
More details
Other editions
New editions
Jawad Akhtar
Production Planning with SAP S/4HANA
Book
09/2025
3rd Edition
SAP PRESS
€99.95
Available immediately
Person
Author
Jawad Akhtar is an SAP logistics and supply chain management expert with a focus on business sales and delivery. He earned his chemical engineering degree from Missouri University of Science and Technology in the United States. He has 20 years of professional experience, 14 of which have been spent working with SAP systems. He has experience working on several large-scale, end-to-end SAP project implementation lifecycles, including rollouts. He works with SAP clients to help them identify root causes of business issues and address those with the appropriate SAP products and change management strategies. He now focuses on next-generation SAP products such as SAP S/4HANA, SAP IBP, SAP Ariba, and SAP Hybris.
Akhtar is also a technical advisor to SAPexperts, an ASUG speaker, and a contributor to SearchSAP, where his "Ask the Expert" column shares real-life lessons and best practices gleaned from SAP implementations, ways to avoid common project pitfalls, and features of various SAP products that solve key business issues.
Content
... Acknowledgments ... 29
... Preface ... 31
... Goals of This Book ... 32
... Target Audience ... 32
... Structure and Content ... 33
PART I ... Core Production Planning Concepts ... 37
1 ... Introduction to Production Planning with SAP S/4HANA ... 39
1.1 ... Production Planning and Control ... 40
1.2 ... Comparison Table of Production Types ... 52
1.3 ... Production Planning Features in SAP ERP and SAP S/4HANA: A Comparison ... 56
1.4 ... SAP Integrated Business Planning for Supply Chain ... 58
1.5 ... Summary ... 60
2 ... Organizational Structure in SAP ... 61
2.1 ... Breaking Down the Structure into Units ... 61
2.2 ... SAP Calendar ... 69
2.3 ... Summary ... 73
PART II ... Production Planning Configuration ... 75
3 ... Discrete Manufacturing Configuration ... 77
3.1 ... Material Master ... 78
3.2 ... Bill of Materials ... 79
3.3 ... Work Center ... 84
3.4 ... Routing ... 94
3.5 ... Production Order Configuration ... 96
3.6 ... Order Type-Dependent Plant Parameters ... 100
3.7 ... Production Scheduling Profile ... 104
3.8 ... Default Values for the Generation of Operations ... 107
3.9 ... Availability Check ... 108
3.10 ... Scheduling ... 113
3.11 ... Reduction Strategy ... 117
3.12 ... Confirmation ... 118
3.13 ... Reason for Variances ... 126
3.14 ... Trigger Points ... 127
3.15 ... Define Print Control ... 127
3.16 ... Background Jobs ... 128
3.17 ... Summary ... 129
4 ... Process Manufacturing Configuration ... 131
4.1 ... Master Data in Process Industries ... 132
4.2 ... Order Type-Dependent Parameters ... 135
4.3 ... Production Scheduling Profile ... 138
4.4 ... Process Management ... 140
4.5 ... Process Messages ... 144
4.6 ... Process Instruction Category ... 149
4.7 ... Control Recipe/Process Instruction Sheets ... 164
4.8 ... Background Jobs ... 168
4.9 ... Process Manufacturing Cockpit ... 169
4.10 ... Summary ... 172
5 ... Repetitive Manufacturing Configuration ... 173
5.1 ... Repetitive Manufacturing Profile ... 174
5.2 ... Scheduling Planned Orders ... 185
5.3 ... Display ... 186
5.4 ... Material Staging ... 188
5.5 ... Global Settings for Confirmation and the Logistics Information System ... 189
5.6 ... Operational Methods Sheet ... 190
5.7 ... Summary ... 191
PART III ... Production Planning Workflows ... 193
6 ... Production Planning for Discrete Manufacturing ... 195
6.1 ... Process Overview ... 196
6.2 ... Master Data ... 197
6.3 ... Production Order Management ... 232
6.4 ... Release Production Order ... 250
6.5 ... Printing ... 252
6.6 ... Material Withdrawal ... 255
6.7 ... Confirmation ... 261
6.8 ... Goods Receipt ... 267
6.9 ... Postprocessing ... 270
6.10 ... Settlement and Completion ... 272
6.11 ... Additional Functions and Information Systems ... 274
6.12 ... Summary ... 278
7 ... Production Planning for Process Manufacturing ... 279
7.1 ... Process Manufacturing Overview ... 280
7.2 ... Master Data in Process Manufacturing ... 281
7.3 ... Characteristics ... 290
7.4 ... Process Management ... 294
7.5 ... Process Order Execution ... 307
7.6 ... Process Management in Action ... 308
7.7 ... Execution Steps ... 318
7.8 ... Process Messages Evaluation ... 329
7.9 ... Process Manufacturing Cockpit ... 330
7.10 ... Resources Network ... 331
7.11 ... Summary ... 336
8 ... Production Planning for Repetitive Manufacturing ... 337
8.1 ... Overview ... 338
8.2 ... Master Data ... 341
8.3 ... Material Requirements Planning in Repetitive Manufacturing ... 359
8.4 ... Planning Table ... 362
8.5 ... Material Staging ... 372
8.6 ... Production List ... 375
8.7 ... Confirmation ... 377
8.8 ... Reversals and Scrap ... 386
8.9 ... Costing Activities (Cost Object Controlling) ... 391
8.10 ... Heijunka ... 392
8.11 ... Reporting ... 393
8.12 ... Summary ... 395
PART IV ... Production Planning Tools ... 397
9 ... Kanban ... 399
9.1 ... Kanban Overview ... 400
9.2 ... Push-Pull Principle ... 402
9.3 ... Kanban Replenishment Strategies ... 404
9.4 ... Configuring Kanban ... 406
9.5 ... Setting Up Kanban Master Data ... 419
9.6 ... Replenishment with Kanban ... 423
9.7 ... Evaluating and Reporting Kanban ... 450
9.8 ... Summary ... 455
10 ... Batch Management ... 457
10.1 ... Batch Management Overview ... 457
10.2 ... Batch Level and Batch Status Management ... 459
10.3 ... Master Data in Batch Management ... 463
10.4 ... Business Processes of Batch Management ... 467
10.5 ... Batch Determination ... 474
10.6 ... Recurring Inspection and Expiration Dates ... 486
10.7 ... Batch Derivation ... 493
10.8 ... Batch Traceability of Work in Process Batches ... 503
10.9 ... Batch Information Cockpit ... 512
10.10 ... Electronic Batch Record ... 515
10.11 ... Summary ... 517
11 ... Sales and Operations Planning ... 519
11.1 ... Standard Sales and Operations Planning ... 520
11.2 ... Flexible Planning ... 538
11.3 ... Version Management ... 559
11.4 ... Forecasting ... 561
11.5 ... Rough-Cut Planning Profile ... 574
11.6 ... Events ... 578
11.7 ... Mass Processing in Sales and Operations Planning ... 584
11.8 ... Standard Analysis in Flexible Planning ... 586
11.9 ... Summary ... 589
12 ... Demand Management ... 591
12.1 ... Elements of Demand Management ... 592
12.2 ... Strategies for Make-to-Stock Production ... 598
12.3 ... Strategies for Make-to-Order Production ... 609
12.4 ... Strategies for Assemble-to-Order ... 615
12.5 ... Strategies for Planning Components ... 620
12.6 ... Production with Variant Configuration ... 623
12.7 ... Create a Custom Requirement Class ... 626
12.8 ... Business Processes in Demand Management ... 630
12.9 ... Summary ... 642
13 ... Foundations of Material Requirements Planning ... 643
13.1 ... Process Overview ... 644
13.2 ... Deterministic Replenishment Procedures ... 651
13.3 ... Stochastic Replenishment Procedures ... 663
13.4 ... Configuring Material Requirements Planning Types ... 668
13.5 ... Lot Sizing Procedures ... 671
13.6 ... Rounding ... 679
13.7 ... Scrap ... 681
13.8 ... Safety Stock ... 684
13.9 ... Scheduling ... 690
13.10 ... Procurement Proposals ... 695
13.11 ... Configuration Settings for Material Requirements Planning ... 702
13.12 ... Summary ... 705
14 ... Running Material Requirements Planning ... 707
14.1 ... MRP Live ... 709
14.2 ... Stock/Requirements List ... 713
14.3 ... Planning Calendar ... 728
14.4 ... Planning Areas ... 730
14.5 ... Classic Material Requirements Planning ... 735
14.6 ... Types of Planning Runs ... 737
14.7 ... Summary ... 739
15 ... Demand-Driven Replenishment ... 741
15.1 ... Limitations of Current Materials Planning and Replenishment Tools ... 742
15.2 ... Material and Information Flows ... 744
15.3 ... DDMRP Basics and Components ... 746
15.4 ... DDMRP Setup ... 757
15.5 ... Running Demand-Driven Replenishment ... 768
15.6 ... Summary ... 805
16 ... Long-Term Planning ... 807
16.1 ... Long-Term Planning Master Data and Planning Data ... 808
16.2 ... Long-Term Planning: Business Process ... 815
16.3 ... Additional Features in Long-Term Planning ... 820
16.4 ... Evaluate Information Systems ... 826
16.5 ... Summary ... 832
17 ... Predictive Material and Resource Planning ... 833
17.1 ... pMRP Basics ... 834
17.2 ... pMRP Setup ... 835
17.3 ... Managing pMRP ... 839
17.4 ... Releasing pMRP Results to Operative MRP ... 847
17.5 ... Summary ... 848
18 ... Capacity Requirements Planning ... 851
18.1 ... Process Overview ... 852
18.2 ... Capacity Requirements and Capacity Evaluation ... 854
18.3 ... Finite Scheduling ... 869
18.4 ... Dispatching ... 870
18.5 ... Capacity Planning Table ... 885
18.6 ... Summary ... 891
19 ... Production Planning and Detailed Scheduling ... 893
19.1 ... Configuration ... 895
19.2 ... Master Data in PP-DS ... 900
19.3 ... Business Processes ... 917
19.4 ... Heuristics ... 924
19.5 ... Production Planning Run ... 926
19.6 ... Reporting and Monitoring Apps ... 939
19.7 ... Alert Monitor ... 945
19.8 ... Plan Monitor ... 946
19.9 ... Summary ... 951
20 ... Production Engineering and Operations ... 953
20.1 ... Key Terminologies ... 955
20.2 ... Configuration Settings and Production Engineering and Operations Setup ... 956
20.3 ... Production Engineering Master Data Setup ... 964
20.4 ... Planning in Production Engineering ... 979
20.5 ... Production Operations ... 983
20.6 ... Reporting ... 997
20.7 ... Summary ... 999
PART V ... Monitoring and Evaluating Production Planning ... 1001
21 ... Early Warning System ... 1003
21.1 ... Overview ... 1003
21.2 ... Exceptions ... 1005
21.3 ... Set Up Periodic Analysis ... 1011
21.4 ... Schedule an Early Warning System ... 1014
21.5 ... Triggering an Early Warning System ... 1015
21.6 ... Exception Analysis ... 1017
21.7 ... Summary ... 1020
22 ... Production Planning Reporting ... 1021
22.1 ... The Basics of Reporting ... 1021
22.2 ... Report Parameters ... 1022
22.3 ... Order Information System Reports ... 1032
22.4 ... Missing Parts Information System ... 1035
22.5 ... Summary ... 1036
23 ... Standard Planning Analysis ... 1037
23.1 ... Discrete Manufacturing/Production Order ... 1037
23.2 ... Process Manufacturing/Process Order ... 1043
23.3 ... Repetitive Manufacturing ... 1043
23.4 ... Additional Analysis Functions ... 1043
23.5 ... Summary ... 1047
24 ... SAP Fiori Apps for Production Planning ... 1049
24.1 ... SAP Fiori Launchpad and Apps Library ... 1049
24.2 ... SAP Fiori Applications ... 1050
24.3 ... Summary ... 1072
... The Author ... 1073
... Index ... 1075
... Preface ... 31
... Goals of This Book ... 32
... Target Audience ... 32
... Structure and Content ... 33
PART I ... Core Production Planning Concepts ... 37
1 ... Introduction to Production Planning with SAP S/4HANA ... 39
1.1 ... Production Planning and Control ... 40
1.2 ... Comparison Table of Production Types ... 52
1.3 ... Production Planning Features in SAP ERP and SAP S/4HANA: A Comparison ... 56
1.4 ... SAP Integrated Business Planning for Supply Chain ... 58
1.5 ... Summary ... 60
2 ... Organizational Structure in SAP ... 61
2.1 ... Breaking Down the Structure into Units ... 61
2.2 ... SAP Calendar ... 69
2.3 ... Summary ... 73
PART II ... Production Planning Configuration ... 75
3 ... Discrete Manufacturing Configuration ... 77
3.1 ... Material Master ... 78
3.2 ... Bill of Materials ... 79
3.3 ... Work Center ... 84
3.4 ... Routing ... 94
3.5 ... Production Order Configuration ... 96
3.6 ... Order Type-Dependent Plant Parameters ... 100
3.7 ... Production Scheduling Profile ... 104
3.8 ... Default Values for the Generation of Operations ... 107
3.9 ... Availability Check ... 108
3.10 ... Scheduling ... 113
3.11 ... Reduction Strategy ... 117
3.12 ... Confirmation ... 118
3.13 ... Reason for Variances ... 126
3.14 ... Trigger Points ... 127
3.15 ... Define Print Control ... 127
3.16 ... Background Jobs ... 128
3.17 ... Summary ... 129
4 ... Process Manufacturing Configuration ... 131
4.1 ... Master Data in Process Industries ... 132
4.2 ... Order Type-Dependent Parameters ... 135
4.3 ... Production Scheduling Profile ... 138
4.4 ... Process Management ... 140
4.5 ... Process Messages ... 144
4.6 ... Process Instruction Category ... 149
4.7 ... Control Recipe/Process Instruction Sheets ... 164
4.8 ... Background Jobs ... 168
4.9 ... Process Manufacturing Cockpit ... 169
4.10 ... Summary ... 172
5 ... Repetitive Manufacturing Configuration ... 173
5.1 ... Repetitive Manufacturing Profile ... 174
5.2 ... Scheduling Planned Orders ... 185
5.3 ... Display ... 186
5.4 ... Material Staging ... 188
5.5 ... Global Settings for Confirmation and the Logistics Information System ... 189
5.6 ... Operational Methods Sheet ... 190
5.7 ... Summary ... 191
PART III ... Production Planning Workflows ... 193
6 ... Production Planning for Discrete Manufacturing ... 195
6.1 ... Process Overview ... 196
6.2 ... Master Data ... 197
6.3 ... Production Order Management ... 232
6.4 ... Release Production Order ... 250
6.5 ... Printing ... 252
6.6 ... Material Withdrawal ... 255
6.7 ... Confirmation ... 261
6.8 ... Goods Receipt ... 267
6.9 ... Postprocessing ... 270
6.10 ... Settlement and Completion ... 272
6.11 ... Additional Functions and Information Systems ... 274
6.12 ... Summary ... 278
7 ... Production Planning for Process Manufacturing ... 279
7.1 ... Process Manufacturing Overview ... 280
7.2 ... Master Data in Process Manufacturing ... 281
7.3 ... Characteristics ... 290
7.4 ... Process Management ... 294
7.5 ... Process Order Execution ... 307
7.6 ... Process Management in Action ... 308
7.7 ... Execution Steps ... 318
7.8 ... Process Messages Evaluation ... 329
7.9 ... Process Manufacturing Cockpit ... 330
7.10 ... Resources Network ... 331
7.11 ... Summary ... 336
8 ... Production Planning for Repetitive Manufacturing ... 337
8.1 ... Overview ... 338
8.2 ... Master Data ... 341
8.3 ... Material Requirements Planning in Repetitive Manufacturing ... 359
8.4 ... Planning Table ... 362
8.5 ... Material Staging ... 372
8.6 ... Production List ... 375
8.7 ... Confirmation ... 377
8.8 ... Reversals and Scrap ... 386
8.9 ... Costing Activities (Cost Object Controlling) ... 391
8.10 ... Heijunka ... 392
8.11 ... Reporting ... 393
8.12 ... Summary ... 395
PART IV ... Production Planning Tools ... 397
9 ... Kanban ... 399
9.1 ... Kanban Overview ... 400
9.2 ... Push-Pull Principle ... 402
9.3 ... Kanban Replenishment Strategies ... 404
9.4 ... Configuring Kanban ... 406
9.5 ... Setting Up Kanban Master Data ... 419
9.6 ... Replenishment with Kanban ... 423
9.7 ... Evaluating and Reporting Kanban ... 450
9.8 ... Summary ... 455
10 ... Batch Management ... 457
10.1 ... Batch Management Overview ... 457
10.2 ... Batch Level and Batch Status Management ... 459
10.3 ... Master Data in Batch Management ... 463
10.4 ... Business Processes of Batch Management ... 467
10.5 ... Batch Determination ... 474
10.6 ... Recurring Inspection and Expiration Dates ... 486
10.7 ... Batch Derivation ... 493
10.8 ... Batch Traceability of Work in Process Batches ... 503
10.9 ... Batch Information Cockpit ... 512
10.10 ... Electronic Batch Record ... 515
10.11 ... Summary ... 517
11 ... Sales and Operations Planning ... 519
11.1 ... Standard Sales and Operations Planning ... 520
11.2 ... Flexible Planning ... 538
11.3 ... Version Management ... 559
11.4 ... Forecasting ... 561
11.5 ... Rough-Cut Planning Profile ... 574
11.6 ... Events ... 578
11.7 ... Mass Processing in Sales and Operations Planning ... 584
11.8 ... Standard Analysis in Flexible Planning ... 586
11.9 ... Summary ... 589
12 ... Demand Management ... 591
12.1 ... Elements of Demand Management ... 592
12.2 ... Strategies for Make-to-Stock Production ... 598
12.3 ... Strategies for Make-to-Order Production ... 609
12.4 ... Strategies for Assemble-to-Order ... 615
12.5 ... Strategies for Planning Components ... 620
12.6 ... Production with Variant Configuration ... 623
12.7 ... Create a Custom Requirement Class ... 626
12.8 ... Business Processes in Demand Management ... 630
12.9 ... Summary ... 642
13 ... Foundations of Material Requirements Planning ... 643
13.1 ... Process Overview ... 644
13.2 ... Deterministic Replenishment Procedures ... 651
13.3 ... Stochastic Replenishment Procedures ... 663
13.4 ... Configuring Material Requirements Planning Types ... 668
13.5 ... Lot Sizing Procedures ... 671
13.6 ... Rounding ... 679
13.7 ... Scrap ... 681
13.8 ... Safety Stock ... 684
13.9 ... Scheduling ... 690
13.10 ... Procurement Proposals ... 695
13.11 ... Configuration Settings for Material Requirements Planning ... 702
13.12 ... Summary ... 705
14 ... Running Material Requirements Planning ... 707
14.1 ... MRP Live ... 709
14.2 ... Stock/Requirements List ... 713
14.3 ... Planning Calendar ... 728
14.4 ... Planning Areas ... 730
14.5 ... Classic Material Requirements Planning ... 735
14.6 ... Types of Planning Runs ... 737
14.7 ... Summary ... 739
15 ... Demand-Driven Replenishment ... 741
15.1 ... Limitations of Current Materials Planning and Replenishment Tools ... 742
15.2 ... Material and Information Flows ... 744
15.3 ... DDMRP Basics and Components ... 746
15.4 ... DDMRP Setup ... 757
15.5 ... Running Demand-Driven Replenishment ... 768
15.6 ... Summary ... 805
16 ... Long-Term Planning ... 807
16.1 ... Long-Term Planning Master Data and Planning Data ... 808
16.2 ... Long-Term Planning: Business Process ... 815
16.3 ... Additional Features in Long-Term Planning ... 820
16.4 ... Evaluate Information Systems ... 826
16.5 ... Summary ... 832
17 ... Predictive Material and Resource Planning ... 833
17.1 ... pMRP Basics ... 834
17.2 ... pMRP Setup ... 835
17.3 ... Managing pMRP ... 839
17.4 ... Releasing pMRP Results to Operative MRP ... 847
17.5 ... Summary ... 848
18 ... Capacity Requirements Planning ... 851
18.1 ... Process Overview ... 852
18.2 ... Capacity Requirements and Capacity Evaluation ... 854
18.3 ... Finite Scheduling ... 869
18.4 ... Dispatching ... 870
18.5 ... Capacity Planning Table ... 885
18.6 ... Summary ... 891
19 ... Production Planning and Detailed Scheduling ... 893
19.1 ... Configuration ... 895
19.2 ... Master Data in PP-DS ... 900
19.3 ... Business Processes ... 917
19.4 ... Heuristics ... 924
19.5 ... Production Planning Run ... 926
19.6 ... Reporting and Monitoring Apps ... 939
19.7 ... Alert Monitor ... 945
19.8 ... Plan Monitor ... 946
19.9 ... Summary ... 951
20 ... Production Engineering and Operations ... 953
20.1 ... Key Terminologies ... 955
20.2 ... Configuration Settings and Production Engineering and Operations Setup ... 956
20.3 ... Production Engineering Master Data Setup ... 964
20.4 ... Planning in Production Engineering ... 979
20.5 ... Production Operations ... 983
20.6 ... Reporting ... 997
20.7 ... Summary ... 999
PART V ... Monitoring and Evaluating Production Planning ... 1001
21 ... Early Warning System ... 1003
21.1 ... Overview ... 1003
21.2 ... Exceptions ... 1005
21.3 ... Set Up Periodic Analysis ... 1011
21.4 ... Schedule an Early Warning System ... 1014
21.5 ... Triggering an Early Warning System ... 1015
21.6 ... Exception Analysis ... 1017
21.7 ... Summary ... 1020
22 ... Production Planning Reporting ... 1021
22.1 ... The Basics of Reporting ... 1021
22.2 ... Report Parameters ... 1022
22.3 ... Order Information System Reports ... 1032
22.4 ... Missing Parts Information System ... 1035
22.5 ... Summary ... 1036
23 ... Standard Planning Analysis ... 1037
23.1 ... Discrete Manufacturing/Production Order ... 1037
23.2 ... Process Manufacturing/Process Order ... 1043
23.3 ... Repetitive Manufacturing ... 1043
23.4 ... Additional Analysis Functions ... 1043
23.5 ... Summary ... 1047
24 ... SAP Fiori Apps for Production Planning ... 1049
24.1 ... SAP Fiori Launchpad and Apps Library ... 1049
24.2 ... SAP Fiori Applications ... 1050
24.3 ... Summary ... 1072
... The Author ... 1073
... Index ... 1075