What is target utilization in SAP SCM-APO-MSP - Maintenance and Service Planning?

SAP Term: target utilization

• Component: SCM-APO-MSP

• Component Name: Maintenance and Service Planning

• Description: Percentage definition used to calculate preferred start dates for maintenance checks. The intention is to bring utilization to a desired target for example, 95% below the actual compliance date 100%.

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• Key Concepts: 
  Target utilization is a feature of the Maintenance and Service Planning (MSP) component of SAP's Supply Chain Management (SCM) application. It allows users to set a target utilization rate for their resources, such as machines, personnel, and materials. This rate is used to determine the optimal production plan for a given period of time. 
  
  How to use it: 
  To use target utilization, users must first define the target utilization rate for each resource. This rate can be set manually or automatically based on historical data. Once the target utilization rate is set, the MSP component will generate a production plan that meets the target utilization rate. The plan can then be adjusted as needed to meet changing demands or other constraints. 
  
  Tips & Tricks: 
  When setting the target utilization rate, it is important to consider the capacity of each resource and the expected demand for each product. Setting too high of a target utilization rate may lead to overproduction and wasted resources, while setting too low of a target utilization rate may lead to underproduction and missed opportunities. 
  
  Related Information: 
  For more information on using target utilization in SAP SCM-APO-MSP, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SAP_SCM_APO_MSP/7.5/en-US.