Bharat Electronics Limited

SAP Implementation
BUSINESS BLUEPRINT

Business Blueprint

SOP
 BHARAT ELECTRONICS LIMITED
SAP IMPLEMENTATION

DOCUMENT APPROVALS

.Dev.N.V....................................... ................................
Core Team Member-1 Name Date

.Kiran.G.N..................................... ................................
Core Team Member-2 Name Date

.Raju V......................................... ................................

Functional Consultant -1 Name Date

.Murali M.................................... ................................

Functional Consultant -2 Name Date

..R.P.S. Gahlaut.......................... ................................

BEL Project Manager Date

.Yogesh Kulkarni....................... ................................

Wipro Project Manager Date

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DOCUMENT CONTROL SHEET

GENERAL INFORMATION

Project name Document name Document location

Synergy Business Blueprint \\Iscosrvr\Wave 2\SBU\02
Blueprint\Blueprint\PP

DOCUMENT INFORMATION
Version Filename Date Author Reviewed Changes from
by previous version
1.0 Business Murali Raju First Version
15/02/2005
Blueprint SOP

REFERENCE DOCUMENTS

Document Version Reference

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List of Business process covered in this Document:

SLNO Process Code Process Description Status Remarks

B01-PP-SOP-020 Sales & Operations
Planning
01 SOP-020-10 Product Group Closed

02 SOP-020-20 Rough Cut Profile Closed

03 SOP-020-30 Production Plan Closed

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What Is Sales & Operations Planning?

Purpose
Sales & Operations Planning (SOP) is a flexible forecasting and planning tool with which sales,
production, and other supply chain targets can be set on the basis of historical, existing, and estimated
future data. Rough-cut planning can also be carried out to determine the amounts of the capacities and
other resources required to meet these targets.

Use SOP to streamline and consolidate your company’s sales and production operations.

SOP is particularly suitable for long- and medium-term planning.

Integration
SOP constitutes the planning functionality of the LIS information systems.

You pass on SOP plans to Demand Management (PP-MP-DEM) in the form of independent requirements.
In turn, this data is fed to Master Production Scheduling (PP-MP-MPS) and Material Requirements
Planning (PP-MRP).

An interface with Profitability Analysis (CO-PA) allows you to use CO-PA data as the basis for sales
planning in SOP.

You can also pass on the results of SOP to Profitability Analysis (CO-PA), Cost Center Accounting (CO-
OM-CCA), and Activity-Based Costing (CO-OM-CCA).

Application Link Enabling (CA-BFA-ALE) supports the distribution of data to different operating units in
your enterprise.

Master Data
Product Group
A product group combines other product groups and materials according to whatever criteria best meet
the needs of your enterprise; for example, manufacturing procedure, product design, or market niche.

Product groups are classified according to whether they are multi-level or single-level.

A product group is multi-level if it contains other product groups. However, the lowest level in a product
group hierarchy always consists of materials.

A product group is single-level if its members are materials only.

A material or product group can be a member of more than one owner product group.
Rough-cut planning profiles
Rough-cut planning profiles are used in resource leveling. In a rough-cut planning profile, you plan the
requirements of one or more of the following resources:
 Work center capacities
 Materials (typically, raw materials)
 Production resources/tools
 Costs

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These are the resources you will require to meet a sales target, production target, purchasing target, or
any other logistic target you have set for a material, product group, or characteristic value combination.

Rough-cut planning profiles are designed to give you an aggregate view on your resources; that is, you
look at workdays rather than hours or minutes, and work center groups and product groups rather than
individual work center or products. They are therefore an ideal tool for medium- and long-term planning or
for the planning of hierarchies.

You enter your resources data in a few easy steps: the system guides you through a series of dialog
boxes. The results of your entries are shown in a resources table which is laid out along the time axis.

The resources table displays a lot of information at a glance that is, the resources required not just for the
final assembly but for the entire production process, starting with the lowest-level components and ending
with the finished product. Planned resources are displayed in the periods to which they relate.

Planning Based on Information Structures

The Sales & Operations Planning (SOP) application is based on information structures. An information
structure is a statistics file containing operational data. This can be either planning data you anticipate will
happen or actual data that happened. An information structure contains three kinds of information:
characteristics, key figures, and a period unit. Information structures are used for data evaluation,
projection, and analysis in all the logistics information systems.

Menus
The SOP application is offered in two menus: the Standard SOP menu and the Flexible Planning menu.

With Standard SOP, you work with just one organizational unit, the product group hierarchy, and plan
predefined key figures in a planning table with a set layout. All plans in Standard SOP are based on the
standard information structure S076.

Planning carried out in Flexible Planning, on the other hand, can be based on any information structure
of your choice, either a self-defined information structure or a standard information structure. This means
you can plan any combination of organizational units and any key figures. In addition, you can design
your own planning table layouts, known as planning types.

Planning Methods
Of key importance in SOP is the planning method applied to the information structure. The planning
method determines how data is distributed to different corporate units. Three planning methods are
available:

 Consistent planning

 Level-by-level planning

 Delta planning

Constraints
SOP is suitable for the planning of finished materials, but not for the planning of the materials’ component
parts.

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B01-PP-SOP-020: Sales & Operations Planning

Sub Process: SOP-020-10: Product Group

Current Scenario / AS IS:

SR NO. Activities Input Output

Product group maintenance Products Manual register for Product
PP1.1
groups

SAP Scenario / TO BE Process:

STEP Ref. Procedures TCODE Input Output

Code
1 PP1.1 Maintain the product groups plant wise MC84 Product Product Groups
with members and proportion Members

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B01-PP-SOP-020: Sales & Operations Planning

Sub Process: SOP-020-20: Rough-cut planning profile

Current Scenario / AS IS:

SR NO. Activities Input Output

SAP Scenario / TO BE Process:

STEP Ref. Procedures TCODE Input Output

Code
1 Create rough-cut planning profile for MC35 Rough-cut Work Rough cut
product group / material center capacity profile

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B01-PP-SOP-020: Sales & Operations Planning

Sub Process: SOP-020-30: Production Plan

Current Scenario / AS IS:

SR NO. Activities Input Output

Make Production Plan Quarterly / Draft Production Plan
PP1.1
Monthly Sales Plan
Review by SBU Heads in Draft Production Production Plan at SBU level
PP1.2 consultation with Divisional / Plan
Departmental Heads
Review by Divisional Heads in Production Plan at Production Plan at Plant level
PP1.3 Consultation with Departmental SBU level
Heads

SAP Scenario / TO BE Process:

STEP Ref. Procedures TCODE Input Output

Code
1 PP1.1 Maintain the plan at product group / MC76 / Sales Plan Production Plan
To material level plant wise MC87
PP1.2
2 PP1.3 Copy to Active Version MC78 Inactive Version Active Version
3 PP1.3 Aggregate to top level MC8G Lower level Aggregated
Active version active version
4 PP1.3 Transfer to DM for products under MC74 / Active version Demand Plan
Components SBU only (Make to Stock MC75
type)

Note:
Planning periods will be monthly.
Plan will start at lower level from the concerned plants.
For aggregating to higher level product groups / family names to be identified.
Planning versions need to be maintained on monthly basis.

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Issues in the Current Process:

1. Sales plan is done outside as of today. (Refer SD)

Requirements/Expectations:
1. Online Info for Dependencies

Benefits of SAP:

1. Database is single
2. As SAP is highly integrated online Information is available with proper authorizations
3. At corporate level the plan for all the units can be streamlined
4. Rough-cut capacity check helps in setting a realistic target

Gap Analysis

No Gaps

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