how to force 100 % resource utilization in sap …...modules: dp, snp, pp/ds, atp,...

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How to Force 100 % Resource

Utilization in SAP APO Supply

Network Planning Optimization-

Based Planning?

Applies to:

Supply Chain Management 7.0.For more information, visit the Supply Chain Management homepage.

Summary

The paper describes how to reach 100 % resource utilization in SAP APO Supply Network Planning Optimization-Based Planning with resource capacity variants. When you penalize falling below the minimum resource utilization and the minimum resource capacity is 100 % the SNP Optimizer will always try to plan for 100 % resource utilization even if the demands are not sufficient for full utilization.

Author: Dr. Frank Horlacher

Company: SAP AG

Created on: 11 May 2010

Author Bio

Dr. Frank Horlacher is working for SAP in Supply Chain Management Content Expert in the Fast Implemenation Team. He has 10 years experience in SAP APO development and solution management in supply chain management production planning, detailed scheduling, manufacturing execution and optimization system integration. Area of Expertise:SAP APO Modules: DP, SNP, PP/DS, ATP, CIF;Characteristic Dependent Planning; SAP ERP Modules:SD, MM, PP, VC, FI-CO

http://www.sdn.sap.com/irj/bpx/scm

How to Force 100 % Resource Utilization in SAP APO Supply Network Planning Optimization-Based Planning?


© 2010 SAP AG 2

Table of Contents

Requirement ................................................................................................................................................. 3

Configuration and master data ...................................................................................................................... 3

Specify capacity variants in customizing .................................................................................................... 3

Defining capacity variants in the resource master data ............................................................................... 4 Create Definitions ........................................................................................................................................................ 4

Optimization-Based Planning with capacity variants ................................................................................... 8

Related Content .......................................................................................................................................... 13

Disclaimer and Liability Notice ..................................................................................................................... 14



© 2010 SAP AG 3

Requirement

Even in Demand-Driven Supply Chains there might be a need to plan for 100 % resource utilization although the demands are not sufficient to fully load the resource. Reasons for that can be manufacturing constraints or financial requirements on return of investment on assets.

Configuration and master data

Planning with capacity variants in SAP APO Supply Network Planning Optimization-Based Planning can fulfill the requirement for 100 % capacity utilization without sufficient demand quantities. The procedure is to define costs for falling below a minimum available capacity or for using the normal capacity or for increasing the capacity to a maximum. The objective is to achieve 100 % capacity utilization. Therefore we define the normal available capacity equal to the maximum available capacity equal to the minimum available capacity assuming we always use the same shift model in all three capacity variants. The cost for falling below the minimum available capacity is very high. The SNP optimizer then creates planned orders to not fall below the minimum available capacity. If the minimum available capacity is defined as 100 % of available capacity the result is 100 % resource utilization all the time.

Specify capacity variants in customizing

In customizing we need to specify 3 capacity variants:

Minimum capacity variant

Normal capacity variant

Maximum capacity variant

A resource can have these 3 capacity variants for operation and assignment of costs.

IMG Menu Advanced Planning and Optimization Master Data

Resource Specify Capacity Variants

Transaction Code SPRO

http://help.sap.com/saphelp_scm70/helpdata/en/1c/4d7a375f0dbc7fe10000009b38f8cf/frameset.htm

http://help.sap.com/saphelp_scm70/helpdata/en/21/186b398c15ef59e10000000a114084/frameset.htm



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Capacity Variant 1 gets the Minimum Capacity. Capacity Variant is the Normal Capacity and Capacity Variant 3 is automatically the Maximum Capacity.

I needed quite some time to find how to define the customizing here because it is nowhere really documented. I

hope my paper helps you and saves time in the SNP implementation.

Defining capacity variants in the resource master data

See also Configuring Master Data for the Optimizer and Defining Capacity Variants

Transaction: /SAPAPO/RES01 – Resource

Create Definitions

1. In the resource maintenance screen press button Definitions.

2. In the Change/Create Definitions screen go to tab Quantities/Rates.

3. Enter the Name of Quantity/Rate Definition.

4. Enter the number of periods, period type bucket capacity, unit and cost.

5. Create three definitions. One for minimum, normal and maximum capacity utilization each.

6. Assign high costs to the definition for minimum capacity utilization.

In my example I use automatic cost generation for the SNP Optimizer. The only cost I maintained here is the cost for falling below the minimum capacity because I want to force the optimizer to use the normal available capacity which is the same as the maximum capacity.

Create capacity variants

1. In the resource header screen data press button Capacity Variants.

2. In the capacity variants screen go to tab Cap.Var.Qty.

3. Mark the resource in the table and press button

4. In the pop-up enter capacity variant 1.

5. Specify and interval from and to.

6. For capacity variant enter the Qty/Rate Definition you created earlier for the minimum capacity.

http://help.sap.com/saphelp_scm70/helpdata/en/25/a4e44d64fe11d3b6390000e82de178/frameset.htm

http://help.sap.com/saphelp_scm70/helpdata/en/78/a07337e68ac526e10000009b38f889/frameset.htm



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7. Press enter.

8. Repeat steps 3 to 7 for the normal and maximum capacity variants for the same interval.

9. Save your entries.

10. Go back to the resource header view.

11. Go to tab General Data.

12. Enter 2 in the Active Available Capacity Variant.



© 2010 SAP AG 6

13. If you get the following pop-up:

Ignore it.

14. Save your entries

15. To check the available capacity press button Capacity Profile.

16. In the Display Capacity Profile Quantity Capacity view you should see the three variants in the tree, the capacity per bucket and the costs. If you are in the Display Capacity Profile Time Capacity view press button Available Bucket Capacity.



© 2010 SAP AG 8

Optimization-Based Planning with capacity variants

When you prepared all you supply chain master data the capacity variants should be visible in the Capacity View of the Interactive Supply Network Planning Desktop .

Transaction: /SAPAPO/SDP94 - Interactive Supply Network Planning (all Books)

In the above example you can see that the Normal Available Capacity is equal to the Maximum and Minimum Available Capacity. The number of hours per day of available capacity is defined in the capacity profile in the resource master.

http://help.sap.com/saphelp_scm70/helpdata/en/21/186b398c15ef59e10000000a114084/frameset.htm



© 2010 SAP AG 9

When we run the SNP Optimizer we can see costs for falling below the minimum production capacity.



© 2010 SAP AG 10

Comparison of capacity utilization with and without costs for falling below the minimum capacity production capacity

Planning result with costs for falling below the minimum capacity production capacity: the resource utilization

is 100 % every day. The production is at its maximum 4 500 t every day.



© 2010 SAP AG 11

Planning result without costs for falling below the minimum capacity production capacity: the resource utilization is clearly below 100 % every day. The production is equal to the requirements.



© 2010 SAP AG 12

The result of 100 % resource utilization planning may lead to serious overproduction. But this may also be desired for some products.



© 2010 SAP AG 13

Related Content

How to Plan Campaigns in SAP APO Supply Network Planning for a Steel Plant

Determine Setup ID in APO by Characteristic Values

How to plan with constrained storage in APO Supply Network Planning with Optimization-Based Planning?

For more information, visit the Supply Chain Management homepage

http://www.sdn.sap.com/irj/scn/index?rid=/library/uuid/e0b347b8-0d3b-2d10-1f8c-9a2cd06dd3c1

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http://www.sdn.sap.com/irj/scn/articles-scm-all

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Disclaimer and Liability Notice

This document may discuss sample coding or other information that does not include SAP official interfaces and therefore is not

supported by SAP. Changes made based on this information are not supported and can be overwritten during an upgrade.

SAP will not be held liable for any damages caused by using or misusing the information, code or methods suggested in this document,

and anyone using these methods does so at his/her own risk.

SAP offers no guarantees and assumes no responsibility or liability of any type with respect to the content of this technical article or code sample, including any liability resulting from incompatibility between the content within this document and the materials and

services offered by SAP. You agree that you will not hold, or seek to hold, SAP responsible or liable with respect to the content of this

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how to force 100 % resource utilization in sap …...modules: dp, snp, pp/ds, atp,...

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