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APO materials

Former Member
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Hello All,

I am implementing PP/DS in an automotive company. I am trying to determine the materials to be planned in APO PP/DS. What are the criteria to select the materials in the BOMs to plan in APO? Can you please comment how you determine which materials to plan in APO based on your experiences? How many finished goods, how many levels or components per finished good we should select to plan in PP/DS maximum considering performance issues, can you give example figures from your projects?

Thanks in advance,

<i><b>Ergul</b></i>

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi Ergul,

The general guideline is you should consider those finished & HALB products which are critical in terms of capacity consumption of resources. Products which are produced on bottleneck resources should be considered. Products which have long replenishment time (either in-house or externally procurred) can be planned in PP/DS. Also it depends on what functions you are going to use. If you plan to use setup, then may consider products which are inter dependent. You may choose not to consider C-class items (or packing material or material for which there is an annual contract).

Regarding number of products, BOM level and performance issue, you can try out some iterations, first take some sample numbers and then do the sizing of the system as performance mainly depends on your system configuration.

Your business requirement should direct the system configuration, products, BOM level and not the anticipated performance issue. At the end you may have to do some trade off.

hope this helps.

Abhay

Former Member
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Hi Abhay,

Thanks a lot for your quick response. It was really helpful.

There is one point I did not understand. You say that the products which have long replenishment time can be planned in PP/DS. Do you mean something more than one two months by saying long? Here comes another question how long the PP/DS horizon should be maximum. I was told that PP/DS horizon should not be too long for keeping the performance problems low. If the PP/DS horizon is, let's say, three weeks, and the planned delivery time of a component is three months, is it logical to plan this purchase material in PP/DS? In this case can SNP help do you think? I am asking this because I am implementing SNP as well in this project. I am thinking to plan the materials whose replenishment time is long in SNP and fix the SNP plan for PP/DS.

Thanks inadvance,

<i><b>Ergul</b></i>

Answers (1)

Answers (1)

Former Member
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Any other comments?

Message was edited by:

Ergul Taslacioglu

Former Member
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Hi,

You have rightly pointed out the long replenishment time issue. Its not the absolute value as such. Its always relative dependeing on specific business needs. For example, if for a product the vendor is in some other country, being a critical product, business won't take any chance on this product and if that is the only source of supply then its all the more reason to have proper focus on this type of product.

When you talk of a product being planned in SNP then finally its part of PP/DS also in smaller horizon. Both modules are in APO.

Hope this helps.

Abhay