Why S/4 HANA , who can afford it?
Improvements in Production planning – the hidden Goldmine for improving bottom line of manufacturing industries.
See the figures above, who doesn’t want and improvement here.
In fact every SAP implementation in Manufacturing industries start implementing expecting these benefits and end results often ends up with more excel work, more extended ledger and recruitment of people to enter data in SAP. Sounds Ridiculous?
There are several factors that leads to this and many of them are not rocket science.
A typical organization with proper implementation of production planning modules and supply chains improves 22% of Order fulfillment, do you know what it means in terms of better utilization, elimination of changeovers, and improvement in bottom lines – A simple Maths will reveal then, how important it is to have a proper SAP PP implementations.
A shortage elimination of 95% results in cascading effect on improvement of efficiency. Easier said than done this needs a lot of techniques and strategy to make the shop floor system driven.
Below are a few listed areas which we may touch upon
- Stock Strategy
- Planning Strategy
- Dispatch Strategy
- Maintenance plan
- Tool Plan strategy etc.