SOP and LTP

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sap125 P
Aug 20, 2010 6:27 AM
Hello everybody
What is SOP and LTP.Please tell me the steps with T Codes. Please give a short explanation of each t code.
Please help me out in this.
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Re: SOP and LTP

NIKHIL JAIN Aug 20, 2010 9:26 AM (in response to sap125 P)
Hi

SOP (Sales & Operations Planning): SOP is a flexible Forecasting and Planning tool; Sales, production, and other
Supply Chain targets can be set on the basis of historical, existing, and estimated future data;
Generally carried out on Medium to Long term basis

Steps;
1. Create Info Structure: MC21

2. Maintain Info structure parameters: MC7F

3. Create Planning Hierarchy: MC61

4. Create Planning Type: MC8A

5. Create Plan: MC93

6. Transfer Plan to Demand Management: MC90

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Re: SOP and LTP

jaya vimal Aug 20, 2010 10:39 AM (in response to sap125 P)
Hi SAP125,

configuration steps for SOP:
1)Set parameter for Info structure and Key figure
2)Maintain Transfer Profile
3)Define Activity
4)Define Key figure assignment
5)Define copy profile.

procedure of Standard SOP:
1. Create Plan in inactive version
2. Disaggregate product group plan & Check capacity
3. Version Management
4. Transfer Product group to planning

procedure of Flexible Planning:
1.Create Plan in inactive version
2.Convert Plan in to Active Version
3.Transfer to Demand management

Master Data in SOP:
1.Information Structure
2.Planning Type
3.Planning Hierarchy
4.Product Group
5.Resource
6.Rough cut planning profile

It's very helpful link & std procedures for SOP.

SOP steps have 3 classifications
1) STD SOP for Material
2) STD SOP for Product Group
3) Flexible Planning

A) Now Let we take STD SOP for Material

This will takes place in Material and Plant level
so the charateristics will be Material and Plant
The key figures are Sales,Production Qty,Targer stock level,.......etc

Steps
1) Create Planning for material MC87
2) Copy to Active Version MC78
3) Transfer to Demand Mangement MC74

B) STD sop for Product Group
Here also the Characteristics are same material->product group
You have to maintain master data Product group
steps:
1) Create Product Group MC84
2) Create Plan for Product Group MC81
3) Disaggregate Product Group Plan MC76
4) Copy to active version MC78
5) Transfer to Demand Management mc75 for Pg or mc74 for material

C) FLEIXIBLE PLANNING
Here you can able to Define your own characteristics and Key figures

Char like Sales org,Dis chann, Div,......

Key figures like stock,invoice qty,....

steps

1) Create Info structute MC21
2) Maintain Planning Parametes MC7F
3) Create Planning Type MC8A
4) Create Flexible Planning MC93
5) Copy to active version MC8V
6) Transfer to Demand managemet
5) Create Std SOP Planning -MC
6) Transfer to DM from change mode of Flex Plann with active version MC94

if you want use the flexible planning info like SIS in std sop after the 4th step of above it will be like
5) MC87 std sop there Sales data from SIS it will ask for info str and version then you can get it automatically then the
std steps like
6) Copy to Active Version MC78
7) Transfer to Demand Mangement MC74

LTP
In short LTP steps ;

1- create planning secnarion in MS31
2-in OPU5 give parameters for plan orders
3-need to creat damand in MD61 in inactive version
4-realse the demand inactive version in MS32
5-run simulation MRP in MS02
6-check for simulated planned orders in MS04
7-for capacity planning analysis check in CM38

This would help you to understand LTP

You need to Copy Long term Planning results to Operative planning. Then only you can convert.
Long term planning is for simulation purpose. The Result of LTP is Simulative Proposals which CAN NOT BE
CONVERTED INTO PURCHASE ORDER

Because LTP means Simulative Mode Not Operative Mode.
To Copy LTP planned order to operative planning, you have to set Firm indicator for all planned orders you want to
copy to operative planning .

To copy you have to Run MD43 & also you can set Creation indicator =1 to create direct PR in operative planning

In the planning Result Screen -Go from menu Edit -> Copy firmed planned order from LTP-> Enter number of the
planning scenario & copying period.-> choose copy planned order & save.

Now go to Md04 check results.

Basically LTP is simulative MRP to simulate and see all the results like production capacity plan/ raw material plan/
profit margin. Here we are using the same master data like material master, recipe, BOM etc.

In MS31 - you create a LTP version where you can mention the PIR version where you enter the planning data in
MD61.

Release this version and maintain the planning data like qty per period in MD61 with the version mentioned in MS31,
make sure that the version is not active so that LTP consider this inactive quantity data.

Run MS01/MS02/MS03 etc to run simulative MRP.
Results can be seen in MS04/MS05.



We can see the raw material requirement in Purchase info system in MCEC/MCEA/MCEB/MCB&/MCB)

Capacity situation in CM38.

You can transfer the activity data to cost center through KSPP, which will give the activity cost simulation.
Configuration setting in LTP:
The only configuration that we need to make for the Long term planning is in the
Tcode OPu5
1 . OPu5---Define scheduling parameters for planned orders

planning scenarios for long-term planning you can define scheduling parameters for operative planning. Here you
must specify on what level scheduling is to be carried out (detailed , production-rate planning or rough-cut). The date
adjustment takes place based on this scheduling level. If you do not maintain any parameters for long-term planning
then scheduling is carried out in long-term planning with the same parameters as in operative planning.

2. Once you have the setting then create a planning scenario in ms31 and inside the planning scenario you need to
maintain the required settings
In long-term planning, you can create your own versions of the demand program, which are only used for simulative
planning. This means you can calculate and compare the effects of various versions of the demand program in
simulative mode .

After carrying out the simulative MRP run ( MS02) in LTP , you have to transfer the results of the desired version to
real MRP and run MD02

pls find below some of the advantages/applications of LTP

1. With the use of independent BOMs in long-term planning, you gain the advantage that you can simulate planned
changes to BOMs in advance.

2. The purchasing department can also use the results of long-term planning. They use the information on the future
requirements quantities to estimate future orders. This provides them with a basis for negotiating delivery schedules
and contracts with vendors.
Vendors also gain from long-term planning as they are sent a preview of future purchase orders.

3. You can calculate future stock levels using the information available on existing requirements and planned future
receipts. The data calculated in long-term planning concerning the stock and requirements situation can be copied to
Inventory Controlling where it can be evaluated using the standard analysis functions.
The Inventory Controlling system provides you with an easy-to-use tool for displaying and evaluating the stock and
requirements data calculated in long-term planning.

4. You can transfer the activity requirements data calculated in long-term planning to Cost Center Accounting as
planned figures. The system uses this information to determine the production costs for each cost center and for
costing products.

5. In long-term planning, you can calculate which material requirements and costs could be saved if no scrap were
produced in simulative mode.

You do this by setting the Switch off scrap calculation indicator in the planning scenario. This results in the following:

No assembly scrap is planned in the net requirements calculation.
Neither component nor operation scrap are not taken into account in the BOM explosion.
During the Long term planning , u can include the current stock , issue, receipts of material from operative planning.
Inthat case , that material must ahve planned in operative planning before LTP.

SOP - Rough cut plan is gives overview of sale and production plan. It will come into the effect to operative planning,
only if it will be transferred to demand management and MRP.

In LTP, u can copy the simulative planning results to operative planning as u need and update purchase information
system, inventory controlling ,cost center accounting after LTP.

1.A plannig scenario has to be created for a plant in T code MS31 & for the same Planning scenario Configuration
settings has to be made in OPU5 for the planned orders for LTP.

JayaVimal