Dear Experts,
I am asking for your help and valuable experience on S&OP and planning processes applied to the industrial equipment industry.
The typical IE scenario:
- finished product BOM made up of 20 k components
- long lead times for the FP ( 5-9 months)
- difficult to forecast future sales
- every sales order corresponds to a WBE, and a project, with many different activities:
1) engineering planning (design etc )
2) material planning (based on the product configuration) >> bom explosion and MRP
3) assembly
4) testing ( in house) and installation (client site)
5) post shipping, warranty etc etc
All of this activities are linked and distributed in the timeline through:
- WBS cost structure
- activity relationships ( start /end, start/start, etc etc...)
In such scenario i found very difficult to define an efficient S&OP process, as well as to find a tool that can help in such a process by considering and evaluating the effort , workload and financial impact of the future pipeline of projects.
There are basically two options on the market:
A) considering a typical "material planning" advanced tool (such IBP S&OP)
B) considering a typical "project management" advanced tool (such PPM, MS project, Oracle Primavera)
Option A limitations: there's no project structure in SAP IBP and S&OP; the key figures are "flat", and referred to a SKU ( SKU, QTY, DATE) >> how can we consider the effort/cost related to the project activities mentioned above?
Option B limitations: there's no MRP/heuristic planning in the project managent tools. You can properly plan the project activities, not the material cost and distribution over the time.
So...did any of you face such a challenge in their past implementations? which way did you go for?
Thanks
Mauro
Hello Mauro,
I'm not sure which specific effort/cost related to the project you're referring to, but Optimizer aims to minimize the total cost of the supply plan, for example:
In addition, you can define how the optimization will plan according to the following criterias:
The costs related to Optimizer are the folowing:
You can find more information about it in our SAP Help Portal Time-Series-Based Supply Planning Optimizer. Please let me know if you have further questions or doubts.
Best regards,
Matheus
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