SAP LPO (Lean Planning) Vs SAP APO PPDS

[nishant_gopinath]

What is the value in implementing SAP Lean Planning Operations (LPO) as against implementing SAP APO PPDS? As I understand the LPO (Acquired in 2006 from Factory Logic) provides lean planning and scheduling capability for plant execution. Although I understand that the focus with LPO is more on the factory level operations planning, it appears some conflict with the APO PPDS functionality.

[srinivas_krishnamoorthy · Accepted solution]

I had done some research on xLPO some months back and I must admit I have not done a PPDS implementation to be able to draw an intelligent comparison. xLPO is an xapp and yes, it is supposed to fill in for some gaps in PPDS.

Some areas that xLPO that in my opinion may not be covered well in PPDS would be in the area of Level-planning strategies. xLPO comes up with shop floor level scheduling/planning strategy specifically meant to respond very quickly to demand signals through level production plan. In level strategy, typically you chase a particular takt rate and in non-level strategy we chase an inventory level. So typically you anchor your production strategy either on inventory or production rate. The former is dealt very well in PPDS and other standard planning tools. But the latter (where one decides a particular takt rate) is done better in xLPO. And why would one do that ? - wherever changeovers, setting up and unsetting ups are expensive.

[Former Member]

Hey guys,

I am one (there's 2 of us) of the Solution Managers for LPO. APO-PPDS and LPO do have some overlap on what they try do, namely schedule a shop floor, but from two very opposing angles. PPDS conducts it scheduling in a push based method i.e. anticipate demand and build to that anticipation. LPO however creates a pull based method whereas although forecasted demand help set target inventory levels, actual production is only started when actual pull happens. This is very high level and needless to say that LPO does much more for the factory, like creating both production leveling i.e. pacemaker and pull through a sophisticated kanban system. There are some discussions going on on how APO marries with LPO and they actually fit quite nicely together. If the client wants a true pull based supply chain system you implement APO minus PPDS and insert LPO, this solution works quite nicely.

Hop this helps....

Nate Palmer

[Former Member]

Hi guys, could you please provide basic informations about where to find some documentation regarding LPO?

Best regs,

Giorgio.