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Balance the art and science of materials planning! Learn how to use SAP ERP to calculate what, when, and how many items are required for production with this guide. From portfolio management and policy setting to exception monitoring and inventory optimization, you'll see the complete manufacturing picture that materials planning paints.

Materials Planning with SAP

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