ORDER-BASED PLANNING(OBP)
Order-based Planning(OBP)
Order-Based Planning (OBP) helps you create a supply plan using operational data and react to short-term changes. This is a short term plan from the operational point of view. It uses detailed data from external systems, and takes into account, for example, planned orders, production orders, sales orders and purchase orders.
As you know, SAP IBP Response and Supply Application supports an Order Based Data Model tightly integrated with SAP S/4HANA. This helps sales orders to be planned and confirmed from SAP IBP into S/4HANA. This enables in OBP pestling relationship between demand and supply order elements.
Order Based Planning is Worked on Just-In-Time(JIT) basis. It generates finite supply plan based on prioritized and categorized demand such as orders and forecast.
SAP HANA Smart Data Integration (SDI) is used to transfer the data from SAP ERP to IBP order-based planning. Your system administrator connects your IBP system and the source SAP ERP system via SDI, and then administers the data transfer via an application job in order-based planning using OpenAPI. In SDI we use function module to transfer data from staging table to SAP Data Provisioning Agent.
In OBP, we integrate master & transactional data, creates and run a profiles for various operations like Heuristic, Optimizer, Pegging & gating factor etc. and then results are integrates back to the execution systems.
There are following key processes in Order-Based Planning:
1. Supply and Allocation Planning-:
It makes allocation and viable supply plans based on priority forecasting and supply chain constraints in a single step. In addition, the plan provides bottleneck forecasting and product allocation amounts, which are covered by supply.
For this model distribution network, multiple production levels, production resources, supplier constraints and safety stock targets are considered. In addition, ERP integrates transactional data such as purchase orders and production orders.
Here, we define priority demand with flexible rules, so restricted supply is assigned to the most important demands.
In this supply chain allocation plan, we consider constraints such as,
- Resource Efficiency: Resource availability can be imported from ERP depending on the capacity of the workstation.
- Supplier restrictions: purchasing this material.
- Shortage of lead time: Leading time for production, procurement and transportation is considered for planning.
Constrained forecast run in order-based planning Forecasting is the basic planning run for planning demand and obtaining constraint forecast key figures. It also considers the fixed requirements and receipts from the planning run execution systems.
The constrained forecast run creates multi-level receipts and considers various valid sources of available supply. It considers various constraints like resource capacity, supplier constraints, material availability etc.
2. Response Planning:
It creates a supply plan considering the forecast and adapts your plan for any changes in supply and demand. We create order confirmations and approved supply plans based on prioritized demands, allocations and supply chain constraints.
After the constraint forecast is run in the supply and allocation plan, it can always happen that unexpected changes occur. Maybe there's an additional order from a high priority customer, or a factory lacks capacity. Never mind, because along with creating an initial plan, you can also react to changes and update the plan at any time.
In response planning, we use pegging and gating factors for supplier allocation for root cause analysis of demand and any supply. Pegging strategy provides us with timely supply and stable initial supply. IBP has different fiori tiles pegging and gating factor.
After that, we go for the confirmation run for the sales order. It uses the forecast to use as demand and forecast consumption to determine the high of sales. Confirmation runs are the defect supply planning application job if allocation construction is not required. In it, we define priority constraints for a high priority demand.
3. Deployment Planning:
Deployment planning is a mechanism process in Order Based Planning (OBP) which is done to rapidly distribute supply to demand. It is a multilevel plan. When we run the planning heuristic, we determine the inventory cost, the deployment cost, for the cast based deployment plan.
In deployment planning, we use the Deployment Run Profile usage run for forest consumption to forecast or determine higher sales volumes to use as demand
Author
Vivekanand Vakil
SAP IBP Consultant, Baranwal Consultancy and Services (BCS), Pune, Maharashtra, India