Materials Planning with SAP

Uwe Goehring is an SAP Mentor and has worked in supply chain optimization for over 20 years. He is the founder and president of bigbyte software systems corporation, which optimizes SAP supply chains around the world by coaching planners, buyers, and schedulers in poli-cy setting and strategic and tactical planning. Uwe has expressed an interest in his organi-zation buying bulk copies of the book to give away; we have not settled on the details of such an order.Uwe has worked closely with the author of our previous materials planning title (Mark Hoppe) to ensure that all topics are covered, and has expanded his coverage on SAP func-tionality and tools that materials planners will use in daily work.

PART I Materials Planning Basics
Materials Planning Basics
The Process of Materials Planning
The Materials Controller
Strategic and Tactical Materials Planning
Portfolio Segmentation for Decision Making
Lean and Agile Supply Chains
Summary
The Past and the Future of Materials Planning
Past Problems with Materials Requirements Planning
Today's Problems with Material Requirements Planning
A Word on Customizing
The Old Paradigm and the New
Future Potential in Operations, Supply Chain, and Materials Management
Planning the Future with an Unconstrained Supply Plan
Summary
Building Blocks of Materials Planning
Modeling
Strategic and Tactical Materials Planning
Scientific Theories and Global Integration
Summary
PART II Materials Planning in SAP ERP
Principles of Effective Materials Planning
Supply Chain Strategy and Performance Boundaries
Developing User Guidelines and a Policy Playbook
Setting Control Limits
The Competent Materials Controller
Summary
Prioritized Portfolio Management
Portfolio Basics in SAP
Responsibilities and Accountability
Using Buckets
Monitoring Your Portfolio
Summary
Automated and Periodic Policy Setting
Employing Strategies and Policies in an Enterprise
Segmenting a Materials Portfolio
Replenishment Policies
Planning Policies
Setting Policy
Using the SAP Add-On Tools for Segmentation and Policy Setting
Summary
Intelligent Exception Monitoring
Exception Monitoring in SAP ERP
Building a Monitoring System for Exceptional Situations
Using the SAP Add-On Tool MRP Exception Monitor
Summary
Sustainable Inventory Optimization
Performing Inventory Analysis
Employing Inventory Strategies with Meaningful Key Performance Indicators
Making Inventory Optimization Sustainable
SAP Add-On Tools for Inventory Optimization
Summary
PART III Evaluating, Measuring, and Improving Materials Planning
Key Performance and Supply Chain Indicators
The Balanced Scorecard
The Supply Chain Performance Index Framework
Putting It All Together
SAP Add-On Tools for Performance Measurement
Summary
Traditional Inefficiencies
Dealing with an Unmanageable Amount of Exception Messages
An Isolated Sales Department
A Buyer without a Cause
Fiddling with Policy
Capacity Planning
Using Sales Orders for Intercompany Stock Transfers
Chasing Demand
Hiding the Buffer
The Reorder Point Dilemma When Sourcing from Another Plant
The Hang-from-the-Ceiling Strategy
Summary
Improvement and Optimization Programs
Benchmarking the Current State
Developing Improvement Initiatives
Measuring Progress
Summary
Modeling Materials Planning
Scientific Modeling of the SAP Supply Chain
Operations Management and Science
Systems Thinking
Factory Physics
SAP Value Stream Mapping
Summary
Examples from Industry
Continuous and Sustainable Optimization at Tennant Company
Plant Transformation at ASEA Brown Boveri
A Model for the Process Industry from Bellisio Foods
Lean Materials Planning with SAP at Kraft Foods
Summary
Conclusion and Outlook
Appendices
Bibliography
The Author
Index