Confusion in using SOP

[Former Member]

When to use Standard and when Flexible? What would be the business requirement?

SOP is mainly used for Mid and Long term planning, what for Short term? Choosing SOP, does it also depend on scenarios (MTO/MTS) or planning strategies (with assembly/without) or industries (discrete/repetitive).

What is the difference between Sales planning and SOP?

Please through me some light.

[Former Member · Accepted solution]

Hi,

Sales and operation planning is done for medium to long term planning. In SAP for short range planning you can use tools such as MPS(Master production scheduling and MRP). MPS and MRP does infinite capacity planning to level the capacity in short term horizon you can use Capacity planning board to level the capacitys. You can freeze the plan in short term horizon to avoid automatic changes by planning run.

In APO SOP can be mapped using DPand SNP. While Short term planning can be done with the help of PPDS.

Regards,

Santosh

[Former Member · Accepted solution]

thank you very much

[Former Member]

Hi,

Sales and operation planning is different from sales plan. Sales plan will contain at sales quantities to be sold per time period may be month. You forcast for sales figure. Now to achive this sales target you will plan for production considering your capacity and labour and financial resource availability. Some deceisions at brod level how much you will produce inhouse. How much extra outsourcing capacity is required can be decided. So production quantities may be different from sales plan as you may produce in months where sales requirement is less and build inventory to achive future months sales as capacity may be available now and not in future. Some times exisiting resource constraint ca lead to sales plan adjustment like rescheduleing promotion plans etc.

Standarad SOP in ECC is based on infostructure S076. Here you can plan at single organisation level. Sales org,plant etc. there is no flexibility to define multilevel org level for forcast and planning.

In flexible planning you can your own org levels.

Planning strategy will define for which material you want to have forcasting results.

I mean in make to order may be you need to have raw material procurement plan based on sales plan.

There is no constraint as such as industries, type of manufacturing etc.

Regards,

Santosh

[Former Member]

One last question:

I heard SOP is good for mid & long term planning. What is used for short term?

If I have to replace SOP with some other functionality what are other alternatives? (I am not sure, if that makes any sense)

I mean, like using APO or other external tools (if any) or something tat can compensate SOP. Is there something like tat !!!!

Thank you very much