IBP vs Production planning optimizer

[swathi_rege]

Hi Experts...I was reading about IBP and PPDS integration and stumbled across a process question..

Based on my limited understanding IBP has several sub modules and one of them is supply module where you can do planning (optimizer) across supply chain and come up with a feasible bucketed plan..then we can move that to eppds and do a time continuous plan..

But I also read that new PPO within eppds will also do the same supply chain plan looking at transportation lanes, capacity across plants, DC's etc..

So below are my questions

1. What is the difference between ibp supply optimizer vs ppo from functionality side?

2. In what case we directly move our supply plan from ibp to ppds for scheduling versus move it from ibp to PPO and then to ppds? Or if I can ask in a different way

3. what is my input elements from Ibp to ppo and what ppo will handover to ppds? Versus what will be the input to ppds from ibp (without PPO in between)

Thanks

[markus_leopoldseder1]

S4 Production Planning Optimizer (PPO) has indeed many more and useful capabilities that IBP TS optimizer does not have. Note that PPO is not the same like S4 PPDS optimizer: PPDS optimizer is targeted at production scheduling. PPO is targeted at production master planning use cases - as it is the case for IBP TS optimizer as well. Some examples of PPO capabilities that are not available in IBP TS optimizer:

* PV/DS selection dependent on lot size
PPO is able to select the right Production Version respectively PDS; incl. considering the lot size dependencies of the PV/PDS. For doing so PPO determines a "typical lot size" out of various lot size material master data. IBP cannot do that. This is e.g. important if you have 2 production lines for the same product with different lot sizes: One highly manual and flexible for small lots, the other one highly automated with high C/O cost for large lot sizes.

* Fixed material and resource consumption
PPO considers fixed material and resource consumption, such as e.g. caused by C/Os.
IBP does not do that

* Campaign planning on master planning level
PPO considers C/O cost and thus does campaign planning on master planning level already. IBP does not know C/O cost. Campaigning in IBP optimizer can only be achieved by crazy workarounds. Note: C/O of only the last operation in the routing is considered, by PPO e.g. filling line in FMCG or pharma (bad luck if your last operation modeled is palletizing 🙂

* Lot size alignment along production steps
PPO is better suited to align production lot sizes along the value chain, e.g. ensuring that the sum of FMCG SKU lot sizes is equal to the bulk lot size that if used to produce the SKUs (e.g. beer brewing lot size = sum of all bottling lot size using that specific bulk brew)

For some more details on PPO and especially a long list that PPO cannot do have a look at the excellent post: Production-planning-optimizer-in-s-4-hana-ppds-and-its-limitations (2020)

Still an open question: How to best combine S4 PPO with IBP which we want to continue using because of better UI, easier manual planning, scenario planning, nicer dashboards, seamless Excel integration, easy implementation of bespoke functionality with custom key figures & formulas, integration for OBP for allocation and deployment etc.
SAP ERP fans argue that MD04/MD06, capacity views that have not been changed since R2 days and the spotty landscape of PP Fiori apps will be sufficient for user experience. IBP is actually not needed anymore. However I think for the IBP features above. Ideally SAP would add PPO functionality to IBP.
Or allow PPO to be "remote controlled" from IBP, i.e. started and embedded into IBP planning flows
Without that one may have to configure two optimizers, use IBP for more longer term - potentially aggregated S&OP planning and to only display PPO horizon results e.g. for 3 months.
i.e. instead of the usual two planning horizons planning and scheduling, we'd have 3: Scheduling and PPO detailed master planning (both done in S4) and longer term "S&OP level" master planning

-> Thus any experience with integrated PPO IBP scenarios are welcome!

[former_member849945]

This is an interesting question, I've been searching answers for it too. Aside from the obvious Master Data & Transaction data difference, it'll be interesting to understand the capability offerings in PPO & SAP' product positioning. Would PPO be an alternative solution to customers not wanting to switch to IBP Time Series Supply planning?

Cheers

[swathi_rege]

Any help is appreciated