Basel, CH – December 2019
Planning with IBP and Meat and Fish Management
In the latest release, SAP Meat and Fish Management by msg 5.7 offers new functionality supporting the integration of Disassembly Planning into SAP Integrated Business Planning (IBP). Detailed information regarding IBP can be found here.
The following illustration shows how planning is connected to execution and how the two systems complement each other when balancing requirements and supply in the protein industry:
Material requirement planning and long-term planning are both carried out in IBP. Disassembly planning (balancing supply and demand), on the other hand, is executed in SAP Meat and Fish Management by msg based on material from livestock procurement (live animals that will be slaughtered) and carcasses or primal cuts currently in the cold store awaiting cutting. Any product that can be cut further is a possible input for disassembly planning – also remaining quantities from previous days.
When using IBP, disassembly planning is performed as a “constrained planning”, meaning, the system will take the number of live animals as given (operational) and calculate the primal cuts that are going to be produced using those animals. The resulting quantities are then transferred to IBP and IBP decides what to produce. If there are multiple options for a product (different cuts) as in the example below for ham (four cuts), IBP decides which of these options are to be cut and as a consequence which of the orders will be fulfilled.
First calculation run
If we follow the simple example and run a calculation with 500 sows and 500 boars MRP Calculation (disassembly planning in SAP Meat and Fish Management) calculates the ham with leg and hip because this material is set as a “constraint” in the cut list:
IBP will now receive the information that we will get 2000 pieces or 26.056,802 kg of ham with shank and bump. As a next step we will receive instructions (based on the constraint) as to what to produce. IBP will now tell us that we should, for example, produce
- 104 – Pork – Ham wo leg (Spanish): 9500 KG
- 105 – Pork Ham w/o leg (Black forest): 9500 KG
- 103 – Pork Ham w/o leg (Italian): 6056,802 KG
Second calculation run
The result of the second run (based on the material requirements passed on by IBP) looks as follows:
At this point, all the quantities that are not considered main parts (rind, feet, etc.) are calculated and forwarded to IBP. Based on the defined optimization or rules, IBP then decides what to do with these products (pack, freeze, sell, etc.).
The example described is a two-iteration planning; there is no restriction as to the number of runs or constraints that are set on different levels of the cut list.
General Information on Disassembly Planning
SAP Meat and Fish Management by msg provides sophisticated planning cockpits that allow you to run Disassembly Planning. If there is no IBP in place the system is still capable of comparing sales orders or forecasts with the numbers in Disassembly Planning and support the planner in deciding what to produce and identify shortages or surplus.
In general, there are different ways of running the disassembly planning function: it can either be constrained or unconstrained or a combination of both. Unconstrained means that the system is calculating how many live animals are required to fulfill the requirements. If there are products that are not relevant for unconstrained planning (e.g. bones), they can easily be excluded via a setting option in the cut list. The cut list is the basis for the disassembly planning. Its purpose is to reflect the right structure to carry out planning on the required level of detail:
- Different categories of live animals
- Classification – e.g. based SEUROP classification
- Different weight ranges
After planning has been completed the disassembly orders with the planned quantities are created and yield reporting based on planned/target/actual can be carried out at any time during production. Planning then can be repeated as often as it is required (if needed also after production has started) which allows you to react to unforeseen events, for instance incoming sales orders that need to be prioritized.
If we have piqued your interest with this article, please do not hesitate to contact Mr. Stephan Kronbichler (Business Development) for more information: e-Mail, phone +41 (0)61 508 21 42.