A manufacturing
enterprise takes massive starting capital and involves high risk as compared to service based industries like software companies. But with rapid advances in technology, certain factors such as quicker response times and connectivity are fast becoming essential for success as a manufacturing enterprise. Accurate and real-time information are also needed for the project planner for enterprise level planning. With various Key Performance Indicators (KPI’s) used for manufacturing units, the information flow should be optimized by the project planner to achieve most KPI’s. Checking inventory turnover, cycle time and no stock out positions are all key to enhancing enterprise productivity.
enterprise takes massive starting capital and involves high risk as compared to service based industries like software companies. But with rapid advances in technology, certain factors such as quicker response times and connectivity are fast becoming essential for success as a manufacturing enterprise. Accurate and real-time information are also needed for the project planner for enterprise level planning. With various Key Performance Indicators (KPI’s) used for manufacturing units, the information flow should be optimized by the project planner to achieve most KPI’s. Checking inventory turnover, cycle time and no stock out positions are all key to enhancing enterprise productivity.
Traditional MRP Vs.
Present MRP
This brings us to comparing traditional Manufacturing
Resource Planning (MRP) with what is available today. Conventionally planners
would not be able to execute MRP periodically and with consistency, which would
lead to bottlenecks in the enterprise. This means manufacturing units having
massive data sets needing to be processed will be a great challenge. Such high
volumes of unprocessed data will lead to high inventory volumes, misplaced or
missing parts which in the end will drive up manufacturing costs. SAP S/4 HANA comes to the rescue here,
with its in-memory capabilities that accelerate MRP by as much as 10 times when
contrasted with conventional MRP.
Conventional MRP has the system making multiple calls to the
database server to get data from 52 different tables. All this data is read
sequentially which backs up the process results. But when it comes to MRP live
using SAP S/4HANA, the needs of various materials are read in parallel.
The way this works is when MRP is run, data from various tables is read and
transformed into a common structure while skipping irrelevant data tables. The
calculations associated with shortages, needs, all are executed on the database
server, thus creating the planned and purchase requisitions. HANA database (learn
about HANA database from SAP HANA training) capability helps eliminate the bottlenecks we spoke of earlier.
It is worth considering some of the additional advantages of
MRP live which are as follows:
- The ability to plan multiple plants
- Planning a set of materials, elements and filtering it based on the individual in charge of a material across various plants
- MRP live automatically decides material planning sequence across different plants
- MRP live is a pre-requisite for the future production planning for PP/DS in SAP S/4HANA
Transforming
planning approaches
The working approach for planners has been re-invented
through the new user experience made possible by SAP Fiori (See SAP FIORI training by experts from
Learn IT Training for more details) and SAP HANA 2. With this the planner’s
time is freed up to devote more attention to exceptions within processes and
scenarios needing more attention for resolution, which includes financials.
Fiori brings with it embedded analytical capabilities helping planners make
faster and smarter decisions. SAP S/4HANA has its real time information shown
across several areas such as lot sizes, stocks, availability procurement lead
time, manufacturing schedules and sales orders across multiple locations.
There is real-time information and optimization logic in SAP
S/4HANA which enables the planner to obtain the optimal replenishment
parameters and strategies. The ability of such a system to contrast
efficiencies of external and in-house replenishing at target sites is of great
use, too say the least. This will clearly reflect in the balance sheets of the
organization in terms of increased revenue in a relatively short period.
Conclusion
It is clear from the
ways SAP Fiori and HANA 2.0 add to the optimization of MRP that enterprises
should not neglect the importance of SAP Fiori and HANA. In future SAP comes up
with innovative Fiori and HANA 2.0 adds on for effective optimization of MRP. Fiori is a relatively new technology and will continue to mature
with every release. Thus, Fiori consultants have an additional responsibility
of self-learning and mastering new features.
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