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Mill products - Paper industry consideration of primary and substitute components APO MRP

Hello community,

I am seeking feedback from fellow Mill product community on possible modeling options to address scenario involving ability to consider both Primary and Alternative component supply during APO PPDS MRP Planning.

Context - Paper industry /Manufacturing of Sheeted products using input Parent roll (Semi-finished products)

Background/Process Flow -

  • Large roll products (ie Parent Rolls) are converted into sheet during conversion process. For each converting equipment type/sheet size combination, there is an optimal (primary) Parent Roll component.
  • Example producing sheets of 8.5" width on a 10 pocket sheeter (ie 86" width on sheeter) calls for an optimal Parent roll size of 86" (this input roll will allow 10x cuts of 8.5" width sheets).
  • Although 86" width component is optimal, constraints in the upstream supply process (Paper machine production/trim process constraints) often result in "non-optimal" roll sizes being produced (ie 77") and sent to downstream converting operations.
  • Since the primary consideration is upstream Paper Machine efficiency, the downstream converting units have to accept these input products as supply and use them even though there may be some lost efficiency (ex only 9x cuts possible from a 77" width input component roll).
  • At this time, the various input Parent Rolls are modeled as separate material numbers based on roll width (ex SKU A = 86" width, SKU B = 77" roll width, SKU C = 69" roll width).
  • BOM's are created for each roll width combination (BOM 1 - A (86") , BOM 2 - B (77"), BOM 3 - C (69")
  • The objective in our planning team is to consider the "pool" of available supplies during MRP net requirements planning (ie the total supply of both primary (86" width components) and secondary (77" and 69" components) before generating new procurement proposals (planned orders or stock transfer requisitions).
  • Prior to generating a procurement proposal on the primary size, we would want to consider alternative component supply
  • Desire is to do more aggregate planning for Component products where we collect all the demands at a higher product/grade family (example A) and perform net requirements at this level. It is not so much a case of doing individual ATP checks for a finished good planned order but rather doing aggregate planning for the Component family within PPDS

Current Problem - At this time, our planning run selects the BOM with the primary roll size (note ATP component checks are currently not being used). This results in dependent demands being created for primary roll size but does not adequately consider supplies of alternative components thus creating false procurement recommendations.

Our desire is to plan at a higher level (see below image)

Options being considered:

- We are looking at possibility of creating a variant material which has the key differentiing component characteristic "roll width" undefined at a material master level.

Logic would be to create a new material "ABC" as the new component in the BOM and discontinue the use of materials A/B/C. All stocks and planned receipts (planned orders/stock transfer receipts) would be modeled under 1 Component product code for MRP Planning. Each stock and receipt would have characteristic values defined for roll width but all dependent demands created would have roll width value blank (based on Material master). This would allow the dependent demand to be consolidated under one product code yet still retain the receipt classifications needed for production and inventory processes.

Feedback requested

Would appreciate any other paper industry/similar mill products feedback that had to deal with similar situations and possible modeling approaches. Any comments/suggestions given above context would be appreciated.- Also what options for any type of PPDS aggregate product planning exist? We know SNP has aggregate planning but this doesn't meet our needs based on the operational timeframe of our planning needed.

Thank you in advance for any feedback.

Best regards

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3 Answers

  • Best Answer
    Sep 26, 2017 at 06:52 AM

    Hi Jill,

    I have worked at a few Paper/Sheet manufacturers where we evaluated receipts (components) based on characteristics. So yes we have one variant material with Roll width as characteristics with different widths. Again based on sheeter width (no of pockets), max roll weight that can be mounted on a sheeter we qualified the roll (based on availability). To do this I developed a custom PPDS heuristic both standard lots and DS heuristic with capabilities to evaluate receipts. So the planning is at Product and characteristics of product.

    Feel free to connect.

    Thanks

    Sandeep

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  • Jan 18 at 05:02 PM

    Like expert Sandeep mentions, there seems to be no standard solution in PPDS for this requirement. This continues to be a big problem for the paper industry, as using up floor inventory takes precedence over making, anytime.

    Coming to your question: I see a problem with the "Options being considered" approach highlighted by you. If you create Dependent Demand, coming from converted products, without any characteristic requirements, pegging will be a nightmare. What this process ideally needs from SAP, is the "characteristic requirements" on the dependent demands to have (allow) a value range or multiple char values. In your case, Width range = 69" to 86" or allow multiple values 69", 77" & 86". The requirement could then have pegged or consumed any available roll of the desired width'. Unfortunately, this functionality is not supported in SAP or so I hear. I am trying to evaluate some posts by expert Frank Horlacher on this community, that mentions the use of "Batch Selection criteria" on the ECC Sales Order side being used to pass a value range to the Characteristic Requirements. I have not been successful on that front yet.

    Let us know if you make a breakthrough

    Cheers

    Add comment
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  • Jan 18 at 05:02 PM

    Like expert Sandeep mentions, there seems to be no standard solution in PPDS for this requirement. This continues to be a big problem for the paper industry, as using up floor inventory takes precedence over making, anytime.

    Coming to your question: I see a problem with the "Options being considered" approach highlighted by you. If you create Dependent Demand, coming from converted products, without any characteristic requirements, pegging will be a nightmare. What this process ideally needs from SAP, is the "characteristic requirements" on the dependent demands to have (allow) a value range or multiple char values. In your case, Width range = 69" to 86" or allow multiple values 69", 77" & 86". The requirement could then have pegged or consumed any available roll of the desired width'. Unfortunately, this functionality is not supported in SAP or so I hear. I am trying to evaluate some posts by expert Frank Horlacher on this community, that mentions the use of "Batch Selection criteria" on the ECC Sales Order side being used to pass a value range to the Characteristic Requirements. I have not been successful on that front yet.

    Let us know if you make a breakthrough

    Cheers

    Add comment
    10|10000 characters needed characters exceeded