DP BOM or SNP

[Former Member]

Hello Somnath,

With reference to your "Speakers" example, I have a scenario which I want to plan and I am not sure what procedure I should follow.

Suppose, I have Business A which plans for the "Music Systems" in a Planning Area A. Also I have Business B, that belong to the same company, which plans "Speakers" in Planning Area B, they make speakers for Business A and other companies also.

My aim is to take Business A's forecast for music systems and use the same to determine the number of speakers I need to make. At present, both the businesses plan seperatly and donot collaborate.

My question is

- Should I can DP-BOM to help me use business A's forecast to determine the speakers volume and save me from doing forecast for speakers

- OR this can be acheived only thru SNP where I will send the Business A's forecast to SNP and plan for speakers and later send the planned orders to r/3.

I am not sure which way I can acheive my goal. Please let me know if you need more explanation to the same. Kindly advice.

Sorry for the breaking in the chain of messages - if needed I can create seperate message for this topic.

Thanks,

Sanju

Followup Thread

Message was edited by:

Sanju

[Former Member · Accepted solution]

if you are just going to do forecasting then DP-BOM should be sufficient

As Somnath said am not sure why you need to have two planning areas

but if its for some other reason that you cannot avoid and dpnt plan to change the planning area design at this stage then......

use a interim Planning area C for doing the DP BOM from which you create the 2 grid planning book/data view - you anyhow need to use a DP-BOM based POS

start with copying the forecast of the Music systems from Plng Area A to Plng Area C into the forecast KF. The dependent demand KF shoiuld be populated now by virtue of the DP PPMs

Transfer back the Dependent demand forecast to PArea B.

Am not sure of your characteristics but make sure your CVCs are aligned with common characteristcs on which you aggregate before copying

Its as good as doing the Planning in SNP but will save you the trouble of doing the product masters etc....

[Former Member · Accepted solution]

Somnath/ Harish,

Thanks for your valuable inputs.

Business A and B operate little differently from each other. They plan at different characteristics levels and have different Units of Measure. And yes, they do have different POS.

As I said earlier, Business B manufactures speakers for wide range of Customers some external and remaining internal. Business A is an internal Customer and I wanted to capture the forecast generated by Business A (Internal Customer) and use it to calculate demand in Business B. Currently Business B is not doing that, instead they are calculating their own forecast for all customer (including internal).

To use SNP was the first things I thought about but reading thru the DP-BOM discussion, I started to wonder if we can acheive it through DP-BOM.

Harish's suggestion of using Planning Area C also sounds be very intersting one.

Just for reader's information, we have following four dimensions used in both businesses

1. Product

2. Customer

3. Geography

4. Version

The customer and geography dimension vary some what in both businesses.

Now, suppose if we decide to go with SNP tool then how should be the process flow (e.g should the SNP orders directly go to Business B R/3 system or it should go to Business B's DP system).

Also is "Location" a necessary characteristics in DP for the use of SNP? Business A doesn't have "location" characteristics in their POS.

Thanks for reading ... Kindly pour in your suggestions....

Regards,

Sanju

[Former Member · Accepted solution]

the only issue with the SNP as i mentioned earlier is the maintainance of the Prod master. for eg (I suppose) the products in business A should have inhouse prodn on the procurement strategy

IF you have SNP ppms in place and transfer the forecast from business A , running the heuristics will create the dependent demand

location as in 9ALOCNO is not a necessary char. You can designate any char as a location char in the transfer program from DP to SNP(when you click on the extended button)

so something with the geography dimension can fit the description

make sure you have the char values created as a location. So if you choose region as your location char.. then create N,S,E and W as locations and make sure the char assigned as product is created in these locations. (am not sure if you have these in R3 to be CIFed)

if you are still in the design stage, you can also try a new MPOS with all the char from both DP planning areas. You can always restrict char visible in planning books so the users will only see the char they are supposed to.

for a few functionalities like Extended Safety stock planning you will have to assign the prod and location char in the MPOS (one of the options in the toolbar on top)

[somnath_manna · Accepted solution]

Sanju,

You are better off doing planning for the components (speakers) in SNP. Release your forecast for music systems from business A to SNP with category type FA which will create forecast order series data. If you don't have location in the MPOS of A you can use Location Split option during the release.

The SNP PPM for music systems will carry out the BOM explosion and create dependent demand for speakers. For the speakers you release Forecast from DP to SNP as Category FA. This show up in Forecast keyfigure.

The dependent demand (from the music systems - from PPM explosion of music system) will come and show up in Dependent Demand keyfigure.

The Total Demand macro sums them up and SNP Heuristic considers the total demand for net requirement planning.

Hope this helps.

Thanks,

Somnath

[Former Member · Accepted solution]

Somnath/ Harish,

Thanks for sharing valuble advice. I will stick to my earlier plan of using SNP for planning purpose. Also thanks for showing me direction to follow. It's make the work little easy.

Regards,

Sanju

[somnath_manna]

Sanju,

Do you have different MPOS for the two businesses. Why do you have separate planning areas? Can you change the MPOS of business A because of business B's requirement (to add DP BOM functionality).

My gut feel - you will be better off doing the planning in SNP than using DP-BOM. But if you provide some details then I can probably justify it.

Thanks,

Somnath