What is shrink in SAP SCM-APO-PPS - Production Planning and Detailed Scheduling?

SAP Term: shrink

• Component: SCM-APO-PPS

• Component Name: Production Planning and Detailed Scheduling

• Description: To shorten an activity's duration without adjusting the quantity.

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• Key Concepts: 
  Shrink is a term used in the Production Planning and Detailed Scheduling (PPS) component of SAP's Supply Chain Management (SCM) module. It is a process that allows users to reduce the amount of material needed for production by taking into account the expected yield of the production process. This helps to reduce costs and increase efficiency. 
  
  How to use it: 
  In order to use shrink, users must first define the expected yield of the production process. This can be done by entering the expected yield in the PPS component of SCM. Once this is done, users can then enter the amount of material needed for production and the system will automatically adjust the amount of material needed based on the expected yield. 
  
  Tips & Tricks: 
  It is important to ensure that the expected yield is accurate in order to get the most out of shrink. Additionally, it is important to keep track of any changes in expected yield as this can have an impact on the amount of material needed for production. 
  
  Related Information: 
  Shrink is closely related to other processes such as re-order point planning and safety stock planning, which are also used in PPS. Additionally, shrink can be used in conjunction with other processes such as inventory optimization and demand forecasting in order to maximize efficiency and reduce costs.