CTP Checking Procedure

A full capable-to-promise (CTP) check consists of the following steps:

  1. Determine the appropriate level for the standard ATP check and extended CTP checks (family CTP).
  2. Perform a standard ATP check
  3. Perform an extended CTP check
  4. Perform a channel ATP check

The CTP settings in the Items - Planning (cprpd1100m000) session determine which checks LN actually carries out. In the ATP Handling (cprrp4800m000) session, you can temporarily disable one or more of these checks.

  1. Determine appropriate level for standard ATP check and extended CTP checks

    If family CTP is enabled for the plan item, LN checks if the date for which the CTP must be computed falls within the family CTP horizon:

    • If the date falls before the family CTP horizon, the CTP calculation is carried out for the item itself.
    • If the date falls within the family CTP horizon, the CTP calculation is actually carried out for the family item specified in the Items - Planning (cprpd1100m000) session. (For this family item, the family CTP settings are also considered, so the CTP check can again be redirected to another item.)
  2. ATP check

    LN checks the item's cumulative ATP.

  3. Extended CTP check

    If the ATP found in Step 2 is insufficient, LN can carry out an extended CTP check, depending on the CTP settings for the plan item. This check can be:

    • A component CTP check.
    • A capacity CTP check.
    • A combination of a component and a capacity CTP check.

    A component CTP check can be multilevel, involving several BCM levels (depending on the settings for each component involved).

  4. Channel ATP check

    If channel ATP is enabled for a plan item and the item is going to be sold to a business partner in a particular channel, LN also carries out a channel ATP check. The resulting value is compared with the result of Steps 2 and 3 (the regular ATP/CTP check), and the smallest of these values is used as the final CTP value.

Note: 

To execute a full CTP check, the item does not need an item master plan. If you include a capacity CTP check, resource master plans are required.

  • In the short-term future (that is, within the order horizon), LN bases the CTP check on the routing data and BOM data.
  • In the longer-term future (that is, beyond the order horizon), LN bases the CTP check on the bill of critical capacities and bill of critical materials.

Example

Graphic example:

Item A is produced on (critical) resource R, and uses item C as a (critical) component. You enabled component CTP checks and capacity CTP checks. You did not select the Family Item CTP check box nor the Channel ATP check box for item A in the Items - Planning (cprpd1100m000) session. For item C, only standard ATP checks are enabled.

LN carries out the following procedure when you enter a sales order for item A:

  1. LN checks the ATP of the A item, which is a standard ATP check. The requested quantity cannot be covered entirely by the ATP value of item A.
  2. LN checks the capacity CTP of resource R to see if it can fill the shortage of item A by increasing the production.
  3. LN checks the ATP of component item C, to see if item A can be produced. Technically, this is another standard ATP check.

Example: CTP checking

Filing cabinets are manufactured by pressing sheet metal in the right shape with a plate press.

The metal sheet and the plate press are both critical in CTP. For the filing cabinet, component CTP checks and capacity CTP checks are enabled. Family CTP and channel ATP are not used.

Assume an order is received for 450 filing cabinets, due in week 6.

Production data:

  • To manufacture one filing cabinet, one sheet of metal is required.
  • Pressing one sheet takes 0.1 hour of the capacity of the press.
  • After the pressing operation, one more week is required to finish the cabinet (the lead-time offset is five workdays).

Cumulative ATP/CTP data:

  Week 4 Week 5 Week 6
Cabinet 25 150 150
Metal Sheet 300 550 800
Press 0 hrs 25 hrs 60 hrs

The CTP is checked according to the following procedure:

  • First, LN uses up the available inventory of filing cabinets in week 6 (150 piece). The remaining quantity (300 piece) must be manufactured in addition to the production plan.
  • The production of 300 cabinets requires a capacity of 30 hours in week number 5. The available capacity is only 25 hrs. (The available capacity is cumulated from the present date up to week 5). You can produce only 250 cabinets in time, provided that the critical components are available. The components and the capacity can be available, but the responsible planner might be required to reshuffle orders that also require capacity of the resource involved to make the capacity available on the required moment.
  • The production of 300 cabinets requires 300 sheets of metal to be available in week 5. The table shows that this is not a problem.

The conclusion of the CTP check is: You are capable of promising 400 (150 + 250) filing cabinets in week 6.