SAP Training - PP - Planning Strategies - An overview

Description
This unit describes about the some key planning strategies in PP Module. Learning objectives from this document mainly are as follows :

1. What is Planning Strategy?
2. What is the different type in Planning Strategy?
3. How it will help the Actual Business Process?
4. Planning Strategy – Make To Stock
5. Planning Strategy – Make To Order
6. Planning Strategy – Planning with Final Assembly
7. Planning Strategy – Planning without Final Assembly
8. Requirement Type for Strategies
9. Summary/ How to use this learning

This document is to explains about different manufacturing scenarios supported by SAP planning strategy. SAP provides different strategies to support these different manufacturing scenarios like Make to stock, make to order, engineering to order and assemble to order scenarios.

Significance of Planning Strategy: – In SAP R/3, Planning Strategy represents the method of planning procedure to plan a material and hence determine the production quantities and dates for this material. This material may belong to different manufacturing procedures like make to stock (MTS), Make to order (MTO), Assemble to order (ATO) and engineering to order (ETO). Hence in SAP R/3, these different manufacturing environment are represented by different planning strategies.

Planning Strategies are combination of requirement type for planned independent requirement and requirement type for customer requirement. Planning strategies are assigned to a strategy group in configuration and then this strategy group assigned to a material master in the MRP 3 view in SAP R/3. This material can be a finished good or an important assembly in Bill of materials structure. You have one main planning strategy and seven other alternative strategies. The main planning strategy can be overwritten by the alternative strategies in a planning process. Planning strategy can also be assigned to strategy group and further to MRP group. This will assign planning strategy to a material as well as provide other additional control parameters for MRP.

Structure of Planning Strategy:- In SAP R/3, a planning strategy consists of four sections in which control parameters needs to be configured as per business requirements like Make to stock, Make to order, assemble to order and engineering to order. Below are the sections in a planning strategy.

Requirements type of independent requirements
Requirements type of customer requirements
Assembly order
Configuration