Manufacturing and Capacity Planning
Volumes, capacity and cost in one plan
A production plan that knows its own cost, and a financial plan that knows what the plant can make.
The problem
The production plan is built in units by the plant, cost of goods is calculated by finance from standard costs, and stock movements sit between them. When volumes change, the margin effect appears weeks later. Multi level bills of material and stock rollover make unit cost hard to trace, so pricing and make or buy decisions are taken on stale numbers.
What good looks like
Capacity visible in the plan
Volumes are checked against line and shift capacity before they reach finance.
Unit cost you can trace
Multi level bill of material, routing and overhead rolled up with the calculation visible at every level.
Stock and moving average price modelled
Opening stock, production, consumption and price carried month by month.
Margin by product, forward looking
Not just last month's actual.
How we approach it
Step 1
Map the bill of material, routing and cost structure from S/4HANA.
Step 2
Build the cost rollup and stock logic in SAP Datasphere, SQL based and versioned.
Step 3
Expose volumes, capacity and cost in SAP Analytics Cloud for planning.
Step 4
Reconcile to actual cost of goods for two months before handover.
Standard content we start from
SAP ships Production Planning and Detailed Scheduling KPI Monitoring for SAP Analytics Cloud (order details with delayed orders, lead, processing, queue, setup and wait time, scrap; order operations; pegging from order to demand) and product cost planning inside Integrated Financial Planning, which gives product cost rates and cost of goods.
Neither does a multi level bill of material rollup with stock rollover and moving average price. That part is our custom cost engine in SAP Datasphere, and it is what links the plant plan to the financial plan.
Questions people ask
Talk to us
If unit cost is recalculated by hand whenever volumes move, talk to us.