Long Term Planning – LTP

Long Term Planning:

SAP Production planning has the feature of doing a simualation with the Long term planning.
This is a very useful tool which can be used in handy.

Features of LTP:

  • Same master data of the Operational MRP is used.
  • Comparison of the Operatioanl MPR vs Simulative MRP.
  • Planning for All MRP levels.
  • Long Term Planning allows you to simulate demand (sales forecast) to see a) what new kinds of capacity requirements are created, b) new planned material requirements for lower level assemblies and components.
  • If you are happy with the results of the simulated planned orders, you can make them operational.
  • In long-term planning, various versions of the master plan are created which are each tested, in simulative mode, in the planning run and in capacity planning.
  • The system thus calculates the capacity requirements, the activity category requirements of the cost centers, and the purchased parts requirements.

Pre Requisities:

The below are the Pre requisities which i am aware of have been listed below

  1. If the lead time of the material is more and if they wanted to do a forecast.
  2. Mostly in the Make to stock environment.
  3. Planned independent requirement should be maintained so planning strategy which will support the same is required.

LTP – Process flow :

1. Create & Release planning Scenario
2. Defining Long Term Planning Independent Requirements (Inactive)
3. Run the simulative MRP
4. Simulative reporting analysis.
5. Review the results and take action.
6. Copy the results to operative planning ( this is only optional and not mandatory)

LTP – Process Flow Step by Step
1. Create & Release planning Scenario

1.1 – Use T.Code – MS31 ( Logistics-> Production -> Master Planning -> Long-term planning -> scenario -> create)

1.2-Enter the PlanningScenario number,Description, and select the purpose – select LTP.

1.3-Now it will take to the LTP scenario details Here maintain the below ones

1.3.1 – PIR Date reange

a. Here we need to mention the PIR details.
**From Date range
Specifies the beginning of the planning period
**To Date range

Specifies the end of the planning period,

The period is used to define the period for which PIR taken into account in LTP
1.3.2 Control parameters

**Opening stock -Determines how opening stock will be calculated
**Dep reqmts for reorder point materials-This selection determines whether dependent requirements are also to be created for materials planned using one of the consumption-based planning procedures and whether they are include in the planning run.
**Include firmed receipts -This selection takes purchase orders, production orders and reservations into account in long-term planning
1.3.3 -Available capacity
maintain the proper one, this will avoid the scheduling.

1.3.4-Logistics Controlling

the below ones are done to transfer teh data for analsysis, you can leave it blank also.
Purchase info system version
Inventory controlling version
Last transfer to PURCHIS
Last INV. CO data transfer
1.3.5. Plant Assignment :
If you notice closely all the above steps till now we havent mentioned for which plant we are using this LTP.
Now to over come that we need to select the assign plant in the menu and add the plant and also tell the system which PIR version we will be using.

1.3.6. Now once all of the above is done, we need to save and release.
1.3.7. When we release the system we need to activate the Plannign file entry.
( we have covered the 2. Defining Long Term Planning Independent Requirements (Inactive) in the stpes 1.3.5 to 1.3.7)
1.4 Now we have completed created a planning scenario.

3. Run the simulative MRP

3.1 – Enter T.Code MS01 (Logistics->Production->Master Planning->Long-Term Planning->Long-term Planning->Planning Run->Online)
3.2 -you have to give the relevant plant, Control paremeter etc.
3.3- one important thing that needs to be taken care here is whether results need to be copied to the normal mrp.
3.4. If all settings are takencare you can run the tcode.
3.5 – This will run the Simulative MRP for the whole plant.

4. Simulative reporting analysis.

4.1 -T.code MS04 (Logistics->Production->Master Planning->Long-Term Planning-> Evaluations-)
4.2. this is a replicate of the MD04 tcode, here you have to give the LTP scenario number and then the material and plant.
4.3. now you can see the same screen like md04 and most of the features of the MD04 will be available here.
4.4 T.Code -CM38 – You can use the T.code to do the capacity analysis.

5. Review the results and take action.
5.1. once the results are reviewed you can transfer this as an operative planning.
5.2. If you need to do iteration , like to see an What If analysis, then correct the PIR and again rerun the mrp.
5.3. You can do the iteration any number of times, this will not affect our operational MRP.
5.4. you can also compare the simulative MRP with the Operations MRP also.

Configuration Settings:
1. Only the Scheduling parameters in the OPU5 needs to be taken care, apart no other setting we have.

Eventhough i have covered the same in very high-level this will be a begining point to start few of them, For any assistance do leave on comments.