Proactive Production with Long-Term Planning in SAP PP

In the fast-paced manufacturing world, anticipating future demands is crucial for success. That’s where Long-Term Planning (LTP) in SAP PP comes in. LTP acts as a crystal ball, providing a simulated view of your production capabilities and material requirements.

What is Long-Term Planning (LTP) in SAP PP?

LTP is a powerful tool for simulating future production scenarios. Unlike standard Material Requirements Planning (MRP), LTP doesn’t affect your actual planning data. Instead, it’s a safe space to experiment and assess the impact of different factors on your production process.

Why Use Long-Term Planning?

Here are some key benefits of using LTP in SAP PP:

• Identify Capacity Bottlenecks: Imagine launching a new product line only to realize your work centers are overloaded. LTP helps you reasonably foresee such bottlenecks, allowing you to plan for additional resources or adjust production schedules.
• Forecast Material Requirements: LTP simulates future material needs at all levels of your Bill of Materials (BOM). This empowers you to negotiate better deals with vendors and prevent stockouts that can cripple production.
• Evaluate Different Scenarios: LTP lets you experiment with various production plans. Are you thinking of launching a seasonal product? Use LTP to see how it impacts your production lines and identify potential roadblocks.

How to Run Long-Term Planning in SAP PP

LTP leverages the power of MRP in a simulated environment. Here’s a basic overview of the process:

1. Define Your Scenario: Create a new planning scenario precisely for LTP. This ensures your simulations don’t interfere with your actual production data.
2. Set Up Your Data: Use existing master data (BOMs, routings) or create a separate LTP-specific set for more in-depth simulations.
3. Run the Simulation: Enter the materials, plant, and processing key (usually “NETCH” for the net change in total horizon) in transactions like MS02. The system will then generate an MRP list reflecting your simulated demands.
4. Analyze the Results: The MRP list shows potential shortages, capacity constraints, and procurement proposals. Use this information to refine your production plans and ensure smooth sailing ahead.

Conclusion

By proactively identifying potential issues, LTP empowers you to make informed decisions about production strategies and resource allocation. It’s a valuable tool for any production planner who wants to stay ahead of the curve and ensure a smooth-running manufacturing operation.