APO10.pdf

© SAP AG AP010 Preface-1

? SAP AG 2001

Copyright 2001 SAP AG. All rights reserved.

No part of this publication may be reproducedor transmitted inany form or for any purpose without the express permission ofSAP AG. The information contained herein may be changedwithout prior notice.

All rights reserved.

Copyright

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? SAP AG 2001

SAP Advanced Planner and Optimizer (APO)

Level 2SAP R/3

Level 3SAP APO

Level 2SAP APO

SAP APO Overview

AP010 2 days

PP - Planning andExecution for Discreteand RepetitiveManufacturing

LO050 5 days

PP-PIProcess Manufacturing

LO060 5 days

liveCacheAdministration

BC555 2 days

Integration MasterData

AP205 2 days

Global ATP

AP230 2 days

Production Planning/Detailed Scheduling

AP220 3 days

SupplyNetwork Planning

AP215 3 days

Demand Planning

AP210 5 days

??The level 2 course AP010, the first in the series of SAP Advanced Planner and Optimizer courses, provides an overview of the individual SAP APO components and is a prerequisite for all of the level 3 SAP APO courses.

??The level 3 courses build on the knowledge gained during AP010 and broaden your working knowledge of the individual SAP APO components. The five level 3 courses give detailed information on the following areas: Demand Planning, Integration, Supply Network Planning, Production Planning and Detailed Scheduling, and Global Availability Check. System administrators can also attend course BC555 liveCache Administration, which is listed in the Basis Administation Training curriculum.


? SAP AG 2001

Course Prerequisites

Prerequisites

Recommended

? General understanding of supply chain concepts

? None


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Target group

??

Target group

Duration

? Project team members involved in theimplementation of APO (Advanced Planner andOptimizer) in their company.

? 2 days

Notes to the user

??The training materials are not intended as self-study programs. They complement the course instructor's explanations. There is space for you to write down additional information on each page.

??There may not be enough time in the course to do all of the exercises. The exercises are additional examples that are done during the course. Participants can also use these examples to refresh or extend their knowledge after the course.


? SAP AG 2001

Company Profile: Precision Pump Company

??

Precision Pump Company

Customers

Products

? The Precision Pump Company was launched in 1971 and is themarket leader, selling a large variety of high-tech standard pumps.It has been listed in the New York stock index Nasdaq 100 since1999.

? In the product catalog are turbomolecular, centrifugal,rotation and membrane pumps (for the manufacture ofultrahigh vacuums, for example).

? From the electronics industry, semiconductor industries,chemical technology, pharmaceutical technology, andprocess technology up to and including vehiclemanufacturers, and universities.

??The Precision Pump Company was launched in 1971 and is the market leader, selling a large variety of high-tech standard pumps. In the product catalog are turbomolecular, centrifugal, rotation and membrane pumps. Its customers come from the electronics industry, semiconductor industries, chemical technology, pharmaceutical technology and process technology up to and including vehicle manufacturers, and universities. The company recently became ISO certified and has been listed in the New York share index Nasdaq 100 since 1999.

??In the rapidly growing business area of turbomolecular pumps in particular, the company has shown a clear rise in revenue over the past business year: in the semiconductor industries countless steps, from wafer manufacture, to the final chip, can only be made under high vacuum conditions. In this area, there has to be ultimate pressure of < 10-10 mbar (i.e. ultrahigh vacuum).

??During the current fiscal year, the company is planning to enter the booming DVD growth market. DVDs are a form of rewritable optical memory media. They are distinguished from the CD by their large memory capacity. Coating equipment needed to create these rewritable DVDs also uses vacuum technology.

??Via intensive "co-engineering" with manufacturers, Precision Pump Company has optimized a large number of products to match these special requirements.


? SAP AG 2001

Plants and Distribution Centers

2400 DC Milan2400 DC Milan

2500 DC Rotterdam2500 DC Rotterdam

1000 Hamburg (main plant and companyheadquarters)1000 Hamburg (main plant and companyheadquarters)

2300 Barcelona2300 Barcelona3800 Denver3800 Denver

3000 New York3000 New York

PlantPlant DCDC


? SAP AG 2001

BOM P-102

1 1 1 1Item 0010 0020 0030 0040 0050 00601 1

Pump Precision 102P-102(FERT, T-F2##) (1000, 0, _ )

1Casing

100-100 (HALB, T-B1##)

(1000, 10, 2 )

1Fly wheel

102-200 (HALB, T-B?##)

(1000, 10, 2 )

1Shaft

100-300(HALB, T-B3##)

(1000, 0, _ )

1Pressure cover 100-400

(HALB, T-B4##)(1000, 10, 2 )

1DocumentP-100(T-F1##)

DRW, 000, 00

Screw100-130

(ROH, 100-130)(1000, 10007, 2 )

1 81Slug

100-110(ROH, T-T1##) (1000, 1000, 2 )

Flat gasket 100-120

(ROH, T-T2##) (1000, 1000, 2 )

Screw 100-130

(ROH, T-T3##) (1000, 1000, 2 )

Slug 100-210

(ROH, T-T0##) (1000, 1000, 2 )

Item 0010 0020 0030 0010 1

1

Slug 100-310

(ROH, T-T4##) (1000, 1000, 2 )

0010 1Slug

100-410(ROH, T-T5##)(1000, 1000, 2 )

0010 1

1003 Gusswerke(5300000866)

1003 Gusswerke(5300000867)

1006 Blacks(5300000720)

1011 Kugelmeier

(5300001081)

1002 Müller(5300000790)

1022 MaxWholesale

(5300000721)

1003 Gusswerke(?)

1011 Kugelmeier(5300001106)

1003 Gusswerke(?)

1011 Kugelmeier(5300001107)

1003 Gusswerke(?)

1011 Kugelmeier(5300001083)

SNP relevant Only R/3

??This slide shows the R/3 BOM for the product P-102 (T-F2##). This BOM was transferred via CIF as a PP/DS BOM with the screw 100-130 only being planned in R/3. An SNP BOM was then generated from the PP/DS BOM. During automatic conversion it was defined that only the products P-102, 100-100, 100-110, 100-300 and 100-310 are SNP relevant.

??Legend: (Demo material number for SD, consulting) (training material type, training material number (xx = 00 - 20)) (plant, stock, single/collective requirements indicator)

© SAP AG AP010 1-1

? SAP AG 2001

Contents:

APO Overview

? Introduction to Supply Chain

? Overview of APO Planning Applications

© SAP AG AP010 1-2

? SAP AG 2001

Course Goals

This course will prepare you to:

? List the fundamental planning scenarios of theAdvanced Planner and Optimizer (APO)

? Explain the functions and interplay of theindividual APO components

? Describe the integration with the execution systemand information systems

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Unit Objectives

At the conclusion of this course, you will be able to

? Explain the concepts of Supply Chain Management

? List the advantages of APO

? Summarize the functions of the planningapplications in APO

? Explain the interplay of the individual planningapplications

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Preface

Course Content

Unit 1 Course Overview

Unit 2 Integration and Technology

Unit 3 Modelling and Evaluation in APO

Unit 4 Demand Planning

Unit 5 Supply Network Planning

Unit 6 Production Planning / Detailed Scheduling

Unit 7 Transportation Planning /Vehicle Scheduling

Unit 8 Global Available-to-Promise

Unit 9 APO SCM Implementation

Unit 10 Conclusion

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? SAP AG 2001

Course Overview Diagram

444

333

Integration and Technology22211 Course Overview

555

666

11

777

888

999

Modelling and Evaluation in APO

Demand Planning

Supply NetworkPlanningProduction Planning/DetailedScheduling

TransportationPlanning/Vehicle Scheduling

Global Available-to-Promise

Conclusion

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Business Scenario

? Precision Pump company would like to improvemanagement of its supply chain, in order torecognize bottlenecks earlier, improve usage ofresources and to reduce costs.

? Reduced lead times and the guarantee of materialand resource availability improve PumpPrecision's customer service.

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Increase customer responsiveness at least cost

Manufacturer DistributionSupplier

Information flow

Retail Outlet Consumer

Supply Chain Optimization

CASH FLOW

Transfer Transfer Transfer Transfer

The Supply Chain: From Supplier to Consumer

??Supply Chain Management includes the management of materials, information, and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers. The co-ordination and integration of these flows within and across companies are critical in effective Supply Chain Management.

??Why manage the supply chain?

??Lower sourcing costs of finished goods and raw materials

??Improve customer service

??Dramatically lower inventory levels

??Leverage all resources to bring substantial benefits to a company

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Changing Consumer Buying Patterns• More products• Alternative ways to shop

CollaborativePlanning

• Sales• Purchasing

More Effective Planning• More accurate forecasting• Feasible plans• Lower inventory levels

Shortened CycleTimes

• Improvedcustomer service

• Flexible reactionto servicerequests

Increased Demand forValue-Added Programs

• Custom packs/displays

Why Have Supply Chain Management?

Innovation … Companies today are being forced to adapt tochanges in the marketplace in order to stay profitable.

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? SAP AG 2001

Key Supply Chain Problems

Supply Chain

Lea

d t

ime

Del

iver

y tim

e

Suppliers

Plants

Customers

DCs

Pu

shP

ull

? Postponement

? Bullwhip Effect

??The key supply chain problem is that the delivery time of products to the customer must be considerably shorter than the production or the lead time. In order to realize this and to guarantee a high delivery service, inventory and safety stock must be built up at component or finished product level in plants or distribution centers (DC).

??You use postponement strategies to define how far the sales order links with the supply chain; in other words, where the decoupling of make-to-stock production (push strategies) (MTS), and make-to-order production (pull strategies) (MTO), takes place.

??The bullwhip effect refers to an increase in variability of a (constant) demand pattern - due to large fluctuations at the manufacturer or the supplier - as we move along the supply chain, triggered by lot size creation.

??Implementing an APS system (Advanced Planning System) does not in itself solve supply chain problems. It is also important that company bosses are prepared to consider making organizational changes to their companies, or at least looking into the possible benefits.

© SAP AG AP010 1-10

? SAP AG 2001

Comparison of MRP II with APS Systems

AggregationLevel

PlanningHorizon

Demand Planning foranonymous demands

Master Production Scheduling (MPS)

Material Requirements Planning forDependent Requirements (MRP)

Lot Sizing

Capacity RequirementsPlanning

MR

P II

APO

SchedulingResult:Feasible plans

??APS (Advanced Planning Systems) is the description of the new generation of planning systems with simultaneous quantities and capacity requirements planning.

??The acceptances for the MRPII concept proved to be too restrictive:

??Material planning has highest priority

??Capacity requirements planning and scheduling are functions that are separate and subsequent to material planning and are executed successively

??Individual planning of separate products. The BOM demands are planned successively and are not linked to each other (no pegging)

??Evaluation and rescheduling of exception situations is feasible

??Cross-plant planning and distribution resource planning do not have to be reflected in the system

??Disadvantages of the MRPII concept:

??The sequential planning process lasts too long; exceptions cannot be replanned quickly

??Constraints and capacities are planned infinitely and require the plan to be postprocessed

??Individual planning of separate products is not given for lot sizes and manufacture of co-products

??Static safety and buffer times lead to long lead times and unrealistic capacity loads

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? SAP AG 2001

Strategic Application Level

Core Business Application Level

•Finance

•MaterialsManagement

•Production Planning

•Sales

•HR

Open Systems

ScalabilityClient-Server

Flexibility

? ? ?

SupplyChain

Solutions(APO)

liveCacheIntegration

CustomerRelationshipManagement

(CRM)

•Logistics

Core level

•Database structure•Interfaces•Development tools•Communication

Non-R/3Systems

ElectronicCommerce

B2B

BusinessInformationWarehouse

(BW)

SAP's Total Supply Chain Solution

StrategicEnterprise

Management(SEM)

R/3

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Advantages of APO

? High performance using liveCache technology

? Global server: integrates multiple OLTP systems

? Collaborative planning via the internet

? Simultaneous material and finite capacity requirementsplanning

? Cross-plant optimization of the resource load

? Sequence and setup time optimization of orders

? Transportation optimization with route planning

? Evaluation and analysis of orders

? Seamless integration between APO and R/3

© SAP AG AP010 1-13

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Levels of Supply Chain Management

Decision of direction for the company

Supply Chain DesignNetwork Design (ND)

Operational aggregated planning (tacticalplanning)

Aggregated sales anddemand planning Demand

Planning (DP)Supply Network Planning

(SNP)

Ext. proc. planning Productionplanning

Delivery planning

Partner

P

artn

er

External procurement ProductionOutbounddelivery

Externalprocurement at

customer

Operational detailed planning (operationalplanning)

Execution

Planning

Su

pp

lierC

ust

om

er

Su

pp

ly Ch

ain C

ollab

oratio

n m

arketplaceintegration

Su

pp

ly C

hai

n C

olla

bo

rati

on

mar

ketp

lace

inte

gra

tio

n

Strategy planning

Tactical planning: strategy realization and infrastructure planning (plan infrastructure)

SNP PP/DS SNP ATP, TP/VSPP/DS

for example,LES, MM

for example,PP

for example, LES,MM, SD

??In Supply Chain Management, there is a planning level and an execution level. Within the planning level APS systems are used (APS = Advanced Planning Systems), and at the execution level, ERP systems (ERP = Enterprise Resource Planning) are used. The planning level is divided into different planning levels depending on the meaning of the decisions made: strategic, tactical and operational. The criterion for deciding what belongs to which planning level is not primarily the planning horizon but rather the scope of the planning. Each hierarchically superior level determines the ranges of the planning levels below it.

??Strategic level (strategy planning): Here, comparatively unstructured and simple planning tools such as portfolio techniques (product life cycle analysis, Boston Consulting Group portfolios, McKinsey portfolios, for example) are used to make decisions about the direction of the company (such as product diversification strategies, quality strategies, cost leadership).

??Tactical level (strategy realization and infrastructure planning): decisions about direction are realized at this level when the company is restructured based on the strategies. Tactical planning is decisive for operational planning and execution because they form the planning environment in the company (plann ing personnel, IT systems for planning, their selection, implementation and setting parameters, planning processes) as well as the part of the company that physically executes (such as factory planning, personnel planning, transportation planning, logistically-relevant IT system for execution). This links the operational planning level and the execution level.

...

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...

??Operational level (operational aggregated and detailed planning): Structured, recurring planning based on tactical realization decisions such as strategies for settling sales orders and pre-planning, which are not questioned again in operational planning. Operational planning can also be long-term to bridge bottlenecks that will occur in the future, such as early planning for seasonal requirements or planning runs to determine components with longer replenishment times. Planning for further planning in the future is usually done aggregated objectively or based on time since planning data is uncertain. Aggregated planning also serves to redirect tactical planning if necessary, for example, additional shifts, additional capacity, outline agreements with suppliers. Detailed planning attempts to optimally use the logistic system within the limits set by tactical and aggregated planning and based on the most current data.

??Execution level: Along with the development of the product (production, stock transfer, sorting, receipt, delivery), administrative activities are also performed at the execution level. These activities are supported by execution systems, for example, when papers for production (production orders) are printed.

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APO Planning Components

APO Product MapMonitor

Tactical

Detailed Planning

Scheduling

Supply Chain Cockpit

Supply NetworkPlanning

ProductionPlanning

&Detailed

Scheduling

Sales

Planning

BUY

Purchasing

DistributionPlanning

&

Deployment

TransportationPlanning

&

VehicleScheduling

Network Design

MAKE STORE MOVE SELL


Agg. Planning

??Supply Chain Cockpit: A graphical tool for evaluating and controlling the supply chain.

??Network Design: Strategic planning for analyzing, optimizing and reorganizing the supply chain. Long-term sourcing, production and distribution decisions are supported here.

??Demand Planning (DP): aggregated and detailed demand planning with a variety of forecasting techniques based on aggregated sales figures.

??Supply Network Planning (SNP): Finite, cross-location, mid- to long-term production and procurement planning with simultaneous material planning and capacity scheduling. Deployment is used to plan short-term replenishment.

??Production Planning/Detailed Scheduling (PP/DS): Finite, detailed production planning. PP/DS uses simultaneous material planning and capacity scheduling, and optimization techniques to generate feasible plans that are in the optimum sequence with the optimum setup-times.

??Transportation Planning/Vehicle Scheduling (TP/VS): Optimizes use of transportation vehicles and selection of carriers. Generates deliveries and shipments.

??Global Available-to-Promise (ATP): Rules-based availability check that is integrated with production planning and product allocation.

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Network Design

Strategic Supply Chain Planning

??Network Design is a component used specifically for strategic planning. You can use this tool to make assignment decisions (relationships between individual locations and assignment of products to locations), as well as to make additional decisions regarding locations (location determination and location selection), taking account of demand and cost structures. Network Design can also be implemented for regular evaluation of the existing supply chain in order to discover any weaknesses and take any necessary measures.

??There are four methods available in Network Design for planning the supply chain network. These methods optimize either geographical distances or costs, in each case taking the demand structures into account.

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Purchasing(MM)

Production Planning (PP)

APO Planning Sequence with R/3 Integration

Demand Planning (DP)

Conversion

Flexible Planning

R/3 or non-SAP system APO

Supply Network Planning (SNP)Prod. Plng & Det. Schedlng (PP/DS)

Planned ind.reqmts

Sales orderConsumption

Sales orderSales &Distribution (SD)

Demandmanagement

Planned ind.reqmts

Transp. Plng & Veh. Schedlng (TP/VS)

Deploy-ment

Logistics Execution System(LES)

Release,Confirmations

Planned orderProduction order

Purchase requisitionPurchase order

Stock transport requisitionStock transport order


Purchase requisitionPurchase orderStock transportrequisition

Planned deliveryDeliveryDelivery

Transfer order Planned shipment / ShipmentExecution

??In APO Demand Planning (DP) you base forecasts on aggregated historical data from the R/3 or Business Information Warehouse (BW) system (such as sales quantities from past sales orders). You use the "Administrator Workbench" in APO to upload aggregated historical data from the R/3 or BW system. In APO Demand Planning you generate planned independent requirements (release forecast to APO Demand Planning) that are used for make-to-stock planning. If you are not yet using APO Demand Planning, it is also possible to generate planned independent requirements in the R/3 system (either manually in R/3 Demand Management, or automatically in R/3 Demand Management using data from R/3 Flexible Planning, Sales and Operation Planning (R/3 SOP), or Sales and Profit Planning (R/3 CO/PA). If you do this, the planned independent requirements are transferred to APO through the R/3 APO interface (CIF).

??Sales orders and planned independent requirements form the starting point for both Supply Network Planning (SNP) and Production Planning / Detailed Scheduling (PP/DS) in APO. Existing storage location stock is also included in the planning. Here, sales orders are entered in the R/3 system (sales module) but the availability check (or ATP check - Available to Promise) is done in APO. Sales orders then consume the planned independent requirements in APO depending on the APO "requirements strategy".

??In Supply Network Planning (SNP) you plan for the short- or mid-term horizon for the entire supply chain: you generate stock transport requisitions (for planning and stock transfer) between distribution centers and plants, and can also generate planned orders (for in-house production planning) and purchase requisitions (for external procurement planning) directly in the production plant for the longer term horizon. In Production Planning and Detailed Scheduling however, you usually generate planned orders and purchase requisitions directly in the production plant for the short term horizon.

...

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??Transaction data generated in APO (such as planned orders) is transferred to the R/3 system through the R/3 APO interface (CIF: Core Interface). The APO demand plan is only transferred from APO to the R/3 system as planned independent requirements through mass processing from within APO Demand Planning (however, you only need to do this if Production Planning is being done in the R/3 system rather than in APO). It is however possible to automatically transfer planned independent requirements that have been maintained in R/3, to APO through the CIF.

??As soon as planned orders and purchase requisitions get closer to the today-line, the stock planner or buyer can collectively convert planned orders into production orders and purchase requisitions into purchase orders. You use the APO Deployment /TLB (Transport Load Builder) to convert stock transport requ isitions into stock transport orders.

??APO is a planning tool: execution functions such as release, confirmation, material staging, or goods movement for production orders or purchase orders are performed in the R/3 system. Confirmation and other data is then transferred back to APO from the R/3 system.

??You create planned deliveries in Transportation Planning and Vehicle Scheduling (TP/VS). In APO TP/VS different deliveries can also be grouped together into one shipment. It is then possible to convert planned deliveries and planned shipments into real deliveries and shipments and transfer them to the R/3. The R/3 system then actions the above (such as printing documents and managing status).

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Demand Planning


ProductionPlanning

The Demand Planning Lever Effect

??Small changes made during Demand Planning cause large changes to be made during Production Planning. The aim of Demand Planning therefore is to create sales quantity forecasts that are as accurate as possible.

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Retail outlet

DistributioncentersProduction

units

Suppliers

Functions of Demand Planning

? Cross-company DemandPlanning (internet)

? Consistent, detailed andconsolidated plans

? Statistical and causalforecasting techniques

? Lifecycle planning

? Promotion planning

??Demand Planning is a complex, powerful, and flexible tool that supports your company's demand planning process. User-specific planning layouts and interactive planning books not only allow you to include different departments, you can also use them to include other companies in the forecast creation process. With APO Demand Planning you can use statistical forecasting methods and advanced macro techniques to do the following: - Create forecasts from sales history, based on many different causal factors; - Test predefined, and user-defined forecast models, and forecast results; - And use a consensus-based approach to consolidate the demand plans of different departments. You can use forecast overrides and promotions to add marketing intelligence and management adjustments. The seamless integration with APO Supply Network Planning supports an efficient Sales and Operations Planning (S&OP) process.

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Demand Planning Concept

Aggregated actual data Future demandforecast

R/3ExcelNon-SAP system

? Incoming ordervalue? Quantities

? Values

? Invoice? Quantities

? Values

?…

?Statistical forecasting

?Collaborative forecasting

?Promotions

Sold-to party

Product hierarchy

Location

Region

Sales organization

BW

??The APO DP library of statistical forecasting and advanced macro techniques allows you to create forecasts based on sales history as well as any number of causal factors, and use a consensus -based approach to consolidate the results.

??Marketing intelligence and management adjustments can be added by using forecast overrides and promotions.

??Aggregated actual data can be extracted from the R/3 system in exactly the same way as it can be imported from BW, Excel, and legacy systems.

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ManufacturerSupplier Customer

Collaborationwith Suppliers

Collaborationwith Customers

? Demand plans? Promotions? Stock levels? Delivery dates

? Product requirements? Production dates? Procurement? Delivery dates

High efficiency, precise information and short leadtimes to improve delivery of service

Supply Chain Optimization

Collaborative Planning in APO

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Supply Network Planning (SNP)

Graph

Design

CapacityLeveling

APO - Product Total

APO - Product Total

Selection Profile

Screen Title

Grid Title

Key Figure 1

Key Figure 3

Key Figure 2

Key Figure 4

Key Figure 5

Object 1

Object 2

Object 3

Object 4

User

Selection ID

W 24

W 25

W 26

W 28 W 27

Planning Book

Grid 2 Title

Key Figure 1

Key Figure 3

Key Figure 2

Key Figure 4

Key Figure 5

W 24

W 25

W 26

W 28 W 27

ID Object Text

Text 1

Text 2

Text 3

Text 4

??SNP Planning plans the mid- to long-term horizon. It creates a rough quantity-based, cross-location production and distribution plan with individual rough bills of material (BOM) and routings.

??The SNP BOM contains critical products that are produced on bottleneck resources and products with a long replenishment lead time.

??SNP ensures that the right quantity is available on the right day without critical resources being overloaded. The smallest unit used for scheduling is days.

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Supply Network Planning Scenario

? SNP plans the material flow along the supply chain

? Mid- to long-term, finite, cross-plant planning

? Prioritization of demands; supply optimization

? Result: Feasible plans

Demand Plan

Supplier Plant DC Customer

??The role of Supply Network Planning involves:

??Planning supply to meet demand

??Integrating purchasing, production, and distribution in one consistent model in the entire supply network

??Synchronizing activities and planning material flow along the supply chain

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Comparison of Mid- and Short-Term Planning

Productionhorizon

ForecastsSales ordersForecastsSales orders

Supply Network PlanningProduction Planning/Detailed Scheduling

? SNP planned orders

? Purchase requisitions

? Stock transfers

? PP/DS planned orders

? Purchase requisitions

? Stock transfers

? SNP BOM and routing

? Cross-plant finite planning

? Distribution and procurement

? Quantity and bucket-oriented

? No pegging

? PP/DS BOM and routing

? Finite, detailed planning per location

? Sequences and setup times

? Continuous and order-related

? Pegging

Time

??SNP integrates purchasing, manufacturing, distribution, and transportation so that comprehensive tactical planning and sourcing decisions can be simulated and implemented on the basis of a single, global consistent model.

??SNP uses advanced optimization techniques, based on constraints and penalties, to plan product flow along the supply chain. The result is optimal purchasing, production, and distribution decisions, reduced order fulfillment times and inventory levels, and improved customer service.

??Pegging is the link between receipts and issues along the supply chain. When an order is shifted, all dependent orders can be adjusted automatically.

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Production Planning / Detailed Scheduling (PP/DS)

??Where Supply Network Planning (SNP) is usually used for rough mid- to long-term planning over the entire supply chain (in particular when there are several plants and distribution centers), Production Planning and Detailed Scheduling (PP/DS) is usually used for to-the-minute short-term planning in a production plant.

??In Supply Network Planning (SNP) demands are aggregated for a specified bucket ("day" for example). It is irrelevant here whether a requirement falls within an early or a late shift, as requirements are only planned roughly here - it does not include break times either. The sequence of orders is not an SNP time consideration. Cross-plant planning, and mid- to long-term planning in the production plant however do all play an important role in Supply Network Planning.

??Production Planning and Detailed Scheduling however, does schedule orders to-the-minute (meaning that shifts and breaks are included here), and does include order sequences (sequencing and optimization of sequences). In the short-term horizon, these functions are highly important for the production plant.

??As soon as a requirement (such as a sales order or planned independent requirement) falls within a specific horizon, it is no longer planned in the SNP planning run, but instead in the production planning run of PP/DS.

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Customer

Functions of Production Planning / DetailedScheduling (PP/DS)

? Plans production, externalprocurement, and stock transferwithin the production plant to-the-minute

? Plans simultaneous materialrequirements and schedules finitecapacity at operation level for theshort-term horizon

? Takes order sequences intoaccount

? Optimizes machine schedules(sequences, lead times)

? Transfers the planning results toan execution system (such as theR/3 Shop Floor Control)

Time

Resource 3

Resource 2

Resource 1

30

20

10

Resource 1Resource 2

Resource 3

??Production Planning and Detailed Scheduling (PP/DS) is used mainly for short-term to-the-minute planning (both for in-house production and external procurement) in the production plant. PP/DS schedules and plans all operations of an order that are relevant for planning at the different resources. PP/DS has the following functions:

??It generates planned orders (to plan in-house production), and purchase requisitions or scheduling agreement schedule lines (to plan external procurement) in the event of product shortage. It uses simultaneous material and capacity requirements planning to do this: You can define resources as “finite” resources (planning-critical resources) in the resource master. Order operations are only created at these resources if there is sufficient capacity for the order quantity on the corresponding date. When there is no available capacity, the system searches for a date on which the order operation can be carried out, taking account of the capacity situation.

??Takes order sequences into account: when new in-house production orders are created, the setup times in the new order can be determined automatically from the setup status of the resources (depending on the preceding order).

??It is possible to display the orders in graphic format (in the detailed scheduling planning board), and to sequence from there. Alternatively you can use the optimizer to execute a sequencing.

??Machine scheduling optimization: during planning, it is possible for orders to be generated that do not have an optimum order sequence. Therefore, you can change the sequence and resource assignments of existing orders using the optimization run.

??PP/DS is a planning tool. Execution functions such as confirmations and goods receipts are performed in the execution system (for example, R/3). Therefore, the planning results are transferred to the execution system.

© SAP AG AP010 1-29

? SAP AG 2001

Deployment adjusts the stock transfers for short-term changeson both the supply and demand side (distribution detailed planning).

Deployment

Chicago

WinnipegCalgary

CustomerDC2

DC1

Plant

? Fair Share

? Proportional distribution

? Proportional targetfulfillment

? Quota arrangements

? Push deployment

? Push horizon

??The deployment function in SNP determines how and when inventory and planned supplies should be deployed to distribution centers, customers, and vendor-managed inventory (VMI) accounts. It generates optimized replenishment plans that take into account short-term changes on the supply or demand side, as well as constraints, such as transportation and storage capabilities.

??A variety of deployment strategies are used depending on the current situation (e.g., fair share, push deployment, pull-push deployment).

© SAP AG AP010 1-30

? SAP AG 2001

TP/VS, LES, and BW provide an integrated solution fortransportation management within the Supply Chain

Transportation Management

LESBW

APO TP/VS (Planning)

(Execution)(Monitoring)

? Is integrated with the APOcomponents DP, SNP,PP/DS, and ATP

? Evaluates the planning inBW

? Plans for both short, andlong term horizons

??The TP/VS component has the following functions:

??Transportation planning and transportation consolidation

??Vehicle Scheduling and route determination in a dynamic environment

??Transportation mode and carrier selection

??Multi-pick up and multi-drop functions

??Management by exception

??The APO system includes the tactical and operational planning area from the SAP Transport Management solution, which is complemented for transportation execution by the SAP component from Logistics Execution Systems (LES).

© SAP AG AP010 1-31

? SAP AG 2001

Rules

Global Available-to-Promise (Global ATP)

? Event-driven

? Internet capabilities

? Rules-based ATP:

? Location substitution

? Product substitution

? Integration with PP/DS

? Product allocations

? High performance (time series)

Is it possible to deliver the productin the required quantity, and on the

required date?

??You use Global ATP (Available To Promise) to check product availability and capacities, to provide customers with reliable confirmation dates for their sales orders. ATP checks are triggered from the OLTP system (R/3 system, or non-SAP system) as an event (event-driven). In the interface with APO you can specify that the ATP check is to be done in APO and not R/3. If you create a sales order in R/3, for example, the system first checks if there is enough of the requested product in stock. The system can also check if receipts (for example, production orders and planned orders) have already been planned by the requested date.

??Global ATP has the following functions:

??Rules-based ATP: When there is no availability, it is possible in APO to set it so that the system does an ATP check for the product at another location or else substitutes that product for an alternative one (location and product substitution).

??Integration with PP/DS : It is also possible to set it so that when a product is not available, the sales order directly triggers production. If it triggers an order for in-house production, APO creates a planned order for the required quantity in PP/DS.

??Product allocations: Product allocation allows you to manage the supply of scarce products to customers, so that each customer only receives an allocated amount.

??Time series: Planned orders and production orders are aggregated and represented in a time series, which can be used to evaluate the incoming requests from the sales orders. This improves performance of the ATP check.

© SAP AG AP010 1-32

? SAP AG 2001

APO optimization solutions

Optimization Solutions

A complete range of optimization solutionsadjusted to the planning tasks

Linear programming /mixed / whole numberprogramming

Genetic algorithmconstraint-based

programming

Tab. search

SupplyNetworkDesign +Planning


Transportationplanning

??In APO, the following optimizers are available: optimizer for CTM, optimizer for PP/DS, optimizer for Network Design, optimizer for Sequence Planning, optimizer for Supply Network Planning, optimizer for Transportation Planning.

??In Supply Network Planning, optimization problems are usually of the nature that they can be solved with an "exact mathematical solution procedure" (which can be solved using linear equations). For this reason, linear programming is used for optimization in Supply Network Planning. Linear programming is able to calculate an "exact solution".

??In Production Planning and Detailed Scheduling (PP/DS) however, there are usually more complex optimization problems for which no "exact solutions" can be found. Therefore, linear programming is less suited for PP/DS. Instead, solutions are more able to approximate an "optimum or exact solution". Approximate optimization procedures are therefore more suited to be used in PP/DS (genetic algorithm/constraint-based programming). This allows the optimization system to find a suitable solution faster.

??The different optimizers can be installed on the same server on which the APO application, the liveCache, and the database are all installed (but you can also install them on different servers). The APO application server and the optimizer are linked via a TCP/IP connection. Here you specify whether the optimizer is to be called on the APO application server or on a different server (transaction sm59).

© SAP AG AP010 1-33

? SAP AG 2001

You are now able to

APO Overview: Unit Summary

? Explain the concepts of Supply ChainManagement

? List the advantages of APO

? Summarize the functions of the planningapplications in APO

? Explain the interplay of the individual planningapplications

© SAP AG AP010 2-1

? SAP AG 2001

Contents:

APO Integration and Technology

? liveCache Technology

? Integration of the Online Transaction Processing (OLTP)System and APO

? Pegging

© SAP AG AP010 2-2

? SAP AG 2001

Unit Objectives

At the conclusion of this unit, you will be able to

? Describe the advantages of liveCache Technology

? Outline the data exchange between R/3 (or otherOLTP systems) and APO

? Explain the pegging tasks.

© SAP AG AP010 2-3

? SAP AG 2001

Overview Diagram (1)

444

333

Integration and Technology111

22Course Overview

555

666

22

777

888

999


Demand Planning

Supply Network Planning

Production Planning/DetailedScheduling



Conclusion

© SAP AG AP010 2-4

? SAP AG 2001

Business Scenario

? With high performance and pegging procedures,the liveCache technology allows quick,simultaneous material and finite capacityplanning.

? Pump Precision uses the R/3 as an executionsystem and APO for planning. The Core Interface(CIF) provides a close integration of the systems,where order data is exchanged in real-time.

© SAP AG AP010 2-5

? SAP AG 2001

APOAPOOLTP (R/3)OLTP (R/3)

GlobalATP

InformationWarehouse(SAP BW)

InformationWarehouse(SAP BW)

Demand Planning

Customerorders

ProductionScheduling

Inventorymanagement

SupplyNetworkPlanning


Deployment

PP / DS

APO Application Architecture

Transportation PlanningTransportationprocessing

LIS, CO-PAHR, FI

KeyPerformanceKey figures(KPIs)

Planned Indep.Requirements

Historicaldata

??Aggregated actual data can be transferred to APO from OLTP, BW (Business Information Warehouse), Excel, and Legacy systems, and saved in InfoCubes. This data is the basis for forecasting. The demand plan is created as a result of the forecast.

??You release the demand plan to Production Planning, which creates planned independent requirements for Supply Network Planning (SNP), and PP/DS. You can also transfer the demand plan to the operating system (OLTP) as planned independent requirements.

??The seamless integration with Supply Network Planning (SNP), and PP/DS supports an efficient S&OP process.

© SAP AG AP010 2-6

? SAP AG 2001

> 1 ms

Application

Data Storage

< 10 µs

liveliveCacheCache

ApplicationApplication

Data StorageData Storage

What is liveCache ?

? Main objective = higher performance:

? Performance-critical routines (in C++) are running in addressspace of the liveCache management system

? => no heavy data transfer between application and data storage

??Access to data in the liveCache is approximately 100 times faster than it is in a database (10 microseconds as opposed to one millisecond).

??Display of complex data structures (nets, trees). The typical liveCache data structure is NOT a relational data table.

??Easy node access (grid access points, navigation).

??Simultaneous access is possible (read & write).

??Fast data recovery.

??Little navigation needed within the networks.

??Applications run where the data is stored

??Further advantages for the user:

??"Shared data" for application and the application server (independent of the R/3 OLTP database).

??Higher performance (performance-critical routines run the stored operations and problem-specific data modeling is therefore supported in the same address space as it is in data management. This is more efficient than relational data modeling).

??Scalability via a number of processors.

??Scalability of the liveCache, because of an interlaced architecture.

?? Higher data security in a simple C program that saves all data. In case of a program termination (downtime), data will not be lost.

© SAP AG AP010 2-7

? SAP AG 2001

Application Server

ABAP-Application Programexec sql.Execute procedure "Schedule_order"

(OUT : var1,IN : table1,IN : var2)

endexec.

Optimized method codingSchedule_order

Optimized data structures

liveCache Technology

? Avoid disk I/O through shared, buffereddata

? Hold all application data in memory

? Save large datasets

? Optimized data structures

? Support application-specific datastructures (e.g. store BOM as atree rather than a relational table)

? Built-in business functionality

? Run application logic where thedata is stored

? Aggregate OLTP databaseinformation in main memory

liveCacheliveCache

??A liveCache management system is in a non-ABAP environment.

??During the first liveCache upload (bring up), mass data (master data and transaction data) from the connected R/3 and legacy system(s) is either sent to the APO System, reduced (filter) or transformed into an APO presentation. Some of the data is then also sent to the liveCache.

??Changes from an OLTP are transmitted into APO in real-time and therefore into liveCache, if the OLTP system is an R/3 System. In case of non-R/3 Systems there is only one periodic upload of the changes.

??The APO server presents changes to be sent back from APO or liveCache into an OLTP system, in a special data structure (black board). From here, the OLTP system collects the relevant changes in regular intervals.

© SAP AG AP010 2-8

? SAP AG 2001

R/3 Plug-In Technology

R/3R/3

Plug-in

Information on R/3 Plug-in: SAPNet/R/3 Plug-in

CRM BW SEM

(from Release 3.1I)

BBP

CIF APO

??An R/3 interface is marked with an R/3 Plug-in to make it possible to integrate a mySAP.com component (for example, APO or BW) with one or several R/3 Systems. With R/3 Plug-ins, several mySAP.com components can be inserted at the same time. Most Plug-ins concern add-ons (R/3 standard software enhancements with additional functions).

??The data transfer between R/3 and APO Systems is defined and controlled using the APO Core Interface (CIF). The CIF is the central interface for connecting APO to the existing R/3 System environment.

??Plug-ins supply the components with transaction and master data. In this way, APO CIF does not only provide the SAP APO System with initial data records (initial supply), it also guarantees a step-by-step supply with all the relevant data changes. Only the object data relevant for the individual planning and optimization process in APO is transferred from the complex data records into R/3. The integration between R/3 and APO is possible as of R/3 release 3.1I (for the PM/SM area and production process models, integration is possible as of 4.5B).

© SAP AG AP010 2-9

? SAP AG 2001

APO

PlantPlant22

PlantPlant33CompanyCompany

CC

PlantPlant11

CompanyCompanyBB

CompanyCompanyAA

liveCacheliveCache

APO

Global APO Server

??A multi-system environment is possible

??Different layouts of enterprises and plants are possible

© SAP AG AP010 2-10

? SAP AG 2001

APO Integration (2)

SAP APOSAP APO

SDSD LOLO

HRHR

SAP R/3SAP R/3

Non-R/3 System

Non-Non-R/3 SystemR/3 System

BAPI

BAPI

BAPI

CIF(Core Interface) BAPIs

??The APO Core Interface (CIF) is responsible for the data exchange between APO and R/3 Systems. The APO Core Interface is a real-time interface, linking APO with one or several R/3 Systems.

??Only the data objects needed in the data structures in APO for the different planning and optimization processes are transferred from the complex dataset of the R/3 into APO.

??The APO Core Interface guarantees both the initial data transfer (initial transfer) and also the transfer of data changes within APO.

??The outbound delivery from APO CIF takes place as an R/3 Plug-in.

??Technical integration of SAP APO with:

??an R/3 environment where Core Interfaces are used

??a non-R/3 environment where the official standard of Business Application Programming Interfaces (BAPIs) is used.

© SAP AG AP010 2-11

? SAP AG 2001

APO Integration (3)

R/3 APOOrder• Production• Procurement• Replenishment

liveCachelive

Cache

LocationProductResourceProduction process model

Plant, Customer,...Material masterCapacityRouting and

bill of material

Sales orderPlanned orderProduction orderOrder...

CIF

CIFReal-time

??The planning in APO is based on its own master data that is usually transferred automatically from a R/3 System, but can also be created manually.

??The transfer of master data from the R/3 is displayed in the corresponding master data in APO. Only the master data relevant for planning in APO is transferred (firstly in the form of an initial transfer, and then later as transfers of data changes).

??The R/3 remains the execution system for the master data. Only the settings which cannot be transferred from the R/3 are maintained directly in APO.

??The transaction data relevant for planning, such as warehouse stock and sales or production orders is also transferred from the R/3 into APO via the CIF interface. And vice versa, the results of the planning in APO are returned to the R/3 via CIF and executed there. This integration of transaction data takes place in real-time.

© SAP AG AP010 2-12

? SAP AG 2001

Master Data Objects of the CIF

R/3 APO

Location

Product

Resource

Production process model

R/3 master data APO master data

Plant

Customer

Vendor

Material master

Capacity

Routing and

bill of material

Initial transfer

Incremental datatransfer

??The APO Core Interface concerns a real-time interface. Only the data objects needed in the data structures reconciled in the planning in APO for the particular planning and optimization processes are transferred from the complex dataset in R/3 into APO.

??Both the initial data transfer (initial transfer) and the transfer of data changes within APO take place via the APO Core Interface.

??The master data objects in APO are not identical with those in R/3. For the master data transfer it is in fact the relevant R/3 master data that is mapped onto the corresponding planning master data in APO.

??The R/3 System remains the dominant system for the master data. Only specific APO master data that does not exist in R/3 is maintained directly in APO.

© SAP AG AP010 2-13

? SAP AG 2001

Initial datatransfer

Transaction Data Objects of the CIF

R/3 APO

Order with category BF (PchOrd) AG (PurRqs) BM (SalesOrder) AI (PlOrd.) FA (FC req.) AM (PrdRes) CC (Stock) ...

R/3 transaction data APO transaction data

Orders

Purchase requisitions

Sales orders

Planned orders

Planned ind. reqmts

Reservations

Supplies...

Real-time

Changetransfer

??The initial data transfer of transaction data takes place first, via the APO Core Interface. The change transfer between R/3 and APO usually automatically follows for transaction data objects that belong to an active integration model. New transaction data or changes to existing transaction data is automatically transferred. (For transaction data of the APO component SNP, you can define in Customizing whether a real-time or periodic publication is to be performed.)

??The transaction data objects in APO are not identical to those in R/3. All transaction data in R/3 is transferred to APO as orders that can be distinguished by ATP category.

??In the standard system, planned independent requirements can only be transferred from the R/3 into APO. The retransfer of the planned independent requir ements that you may require if you only perform Demand Planning in APO, must be triggered from Demand Planning in APO with a specific transaction.

??For planned orders and purchase requisitions, you can specify in APO that they are only transferred from APO to the R/3 System if the conversion indicator has been set.

© SAP AG AP010 2-14

? SAP AG 2001

Transfer of Data to APO

1. Generate integration model NameTarget system

Sales ordersProduction orders

Storage location stock...

Determine name and APOtarget system

Select master and transactiondata

2. Activate integration model

Integration model is active

Data is transferred for the first time, a continuousreal-time incremental transfer of transaction datafollows

Start

??You define the integration model that controls the transfer of master and transaction data in the R/3 System. You can find the menu option Core Interface Advanced Planner and Optimizer (the CIF menu) under Logistics -> Central Functions -> Supply Chain Planning Interface.

??The integration model distinguishes between master data and transaction data. We recommend selecting these two types of data in separate integration models and then also transferring them separately.

??In the integration model, you select the master and transaction data you want to transfer. You specify the following in the integration model:

?? The APO target system for the data transfer

??The data objects you want to transfer

??You can delete integration models that you no longer need. Note that you must first deactivate these integration models.

??For any transaction data that is contained in an active integration model, a continuous real-time incremental data transfer is performed between the R/3 System and APO.

© SAP AG AP010 2-15

? SAP AG 2001

SD MM PP

Sales order


Purchase requisitionStock transfer

Storage location stockIntransit receipts

Purchase requisitionOrder

ForecastliveCacheliveCache

liveCache Integration with R/3

R/3

APO

Planned indep.requirement

CIF

DPDPBWextractors

??The historical data from Demand Planning (DP) is transferred into APO with the help of the extractors from the Business Information Warehouse (BW).

??You can release the Demand Planning forecast to the liveCache and therefore create planned independent requirements. Alternatively, you can transfer planned independent requirements from the execution system.

??The orders, supplies and planned independent requirements of the execution systems are transferred via the CIF interface into APO.

??The planning results of APO, the purchase requisitions, stock transport requisitions, stock transport orders and planned independent requirements, are also distributed via the CIF interface into the execution systems. Planned orders can also create direct production orders in the OLTP system.

© SAP AG AP010 2-16

? SAP AG 2001




Detailed Scheduling (DS)

Deployment

Transport Load Builder (TLB)

APO - OLTP Integration

APO OLTP

Planned independent requirements

Planned ordersPurchase requisitionsStock transportrequisitions

Planned ordersProduction ordersPurchase requisitionsStock transportrequisitions

Adjustment ofstock transportrequisitions

Grouping ofstock transport orders

??This slide shows the exchange of movement data between APO and the connected OLTP systems.

??You can transfer the results of Demand Planning as planned independent requirements to the OLTP systems, similar to the transfer from Flexible Planning or Sales and Operations Planning (R/3) to demand management.

??You can transfer the SNP planning results as planned orders, purchase requisitions and stock transport requisitions to the OLTP system.

??You can also transfer the PP/DS planning results as planned orders, purchase requisitions and stock transport requisitions to the OLTP system. If you convert SNP planned orders into PP/DS planned orders, the planned orders are adjusted in the OLTP system. You can only transfer planned orders as production orders to the OLTP system from PP/DS.

??Deployment and the TLB confirm the OLTP stock transport requisitions and can convert them into stock transport orders or VMI sales orders.

??Via Customizing -> APO -> Supply Chain Planning -> Supply Network Planning (SNP) -> Basic Settings -> Configure Transfer to OLTP Systems you can configure how transfer should take place.

© SAP AG AP010 2-17

? SAP AG 2001

50 50

80 20Pegging

Input nodeOutput node

Demand

Order

50 2030

Pegging

? The pegging network

? assigns receipts torequirements

? propagates therequirements throughthe BOM

? is cross-location

? finds unassigned orderquantities

? APO offers fixed anddynamic pegging

??Pegging describes the assignment of quotation and requirement. It links each input node from requirements or receipts with output nodes from receipts. The material flow between requirements, stock transfers, purchase requisitions, planned orders and storage location stock is therefore defined in the system. Pegging allows the bi-directional planning of components to the end product and of the end product to the components.

??There are two types of pegging:

??Dynamic Pegging: The pegging relationship is re-calculated each time, with regard to quantity and date changes, when a product receipt or issue takes place.

??Static Pegging: All relationships are fixed. Only the user or an external program can change these relationships.

© SAP AG AP010 2-18

? SAP AG 2001

Sales order

Transfer order

Production order

Order

10

30

30

50

50

80 80

50

50

50

50

50

20 10 40 60

100

100

30 20 50

305020

30

10 20 10 40 50

(+20)

(+10)

(-10)

Surplus

Shortage

Supply Chain Pegging

© SAP AG AP010 2-19

? SAP AG 2001

You are now able to

Conclusion

? Describe the advantages of liveCache Technology

? Outline the data exchange between R/3 (or otherOLTP systems) and APO

? Explain the pegging tasks.

© SAP AG AP010 3-1

? SAP AG 2001

Contents:


? Models and version in APO

? Supply Chain Cockpit

? Supply Chain Engineer

? Alert Monitor

? Evaluations using the BW explorer

© SAP AG AP010 3-2

? SAP AG 2001

Unit Objectives


? Explain the functions of models and versions inAPO

? Describe the modelling of the Supply Chainnetwork

? Analyze master and transactional data in theSupply Chain Cockpit

? Call alerts from the Supply Chain Cockpit

? Evaluate aggregated historical data

© SAP AG AP010 3-3

? SAP AG 2001


444

222 Integration and Technology111

33

Course Overview

555

666

33

777

888

999

Modelling and Evaluationin APO

Demand Planning





Conclusion

© SAP AG AP010 3-4

? SAP AG 2001

Business Scenario

? Precision Pump company uses the Supply ChainCockpit for multi-site analysis and documentationof planning results.

? In the Alert Monitor, every planner can find hiscurrent planning problems and exceptionmessages.

? Key Performance Indicators (KPIs)provide benchmarks for defining the goals of thecompany. After each planning cycle, PrecisionPump company uses KPIs to analyze theperformance of its supply chain.

? SAP AG

© SAP AG AP010 3-5

? SAP AG 2001

Planning Version 1 version dependent masterdata and movement data

Planning Version n version dependent masterdata and movement data

Active Version 000 version dependent masterdata and movement data

Legacy R/3

APO Master Data (model independent)

Model 1

OLTP Master Data

Active Model

PPMsTransportation

lanes

Locations

ProductsSimulation

Models

Models and Planning Versions

??The network model represents the supply chain and consists of individual nodes and relationships. In APO it is possible to create and maintain different versions of a model for simulation purposes. There is only one active model (000) with an active version. The active planning version is 000.

??All APO planning functions are based on the supply chain model. The model covers the entire supply chain network. It is modeled in the Supply Chain Engineer and contains details like locations, resources, products, transportation lanes and production process models (PPMs).

??You also have the option of creating several models, each with different versions for simulation purposes.

??Master data like locations, products, resources and plans that are transferred from OLTP systems are automatically assigned to model 000. You must assign master data that you create in APO explicitly to the model.

© SAP AG AP010 3-6

? SAP AG 2001

Alert MonitorAlert MonitorEngineerEngineer

Information

Warning

Error

Ignore

APO Maintenance and Analysis Tools

CockpitCockpit

Modeling theNetwork

Analysis of thePlanning Situation

Evaluation of theException Messages

??The Supply Chain Engineer enables you to maintain the model of your supply chain. You can use this component to create or change supply chain network models. The network model represents a supply chain and consists of individual node points and links. A model can have different planning versions. You also have the option of creating several models, each with different versions for simulation purposes.

??The Supply Chain Engineer is a fully integrated APO component used for creating models. The model is the basis for all APO planning functions. It covers all areas of the network chain, from the supplier's supplier to the customer's customer. The relevant data objects are imported here from the source system to APO.

??The Supply Chain Cockpit allows planners to make an integrated analysis of transactional data in the supply chain. It also allows data to be broken down into planner-specific subsets, such as by indvidual region or product line.

??The Alert Monitor gathers messages regarding problems within your plan.

© SAP AG AP010 3-7

? SAP AG 2001

Work Areas

Access to frequently used objects

? Used for queries

? Serve as filters

? Configured for users

??The complete supply chain view can be unclear. You can limit the view to the objects on which you want to concentrate when you are defining work areas. The work area is used exclusively as a filter for displaying objects in the Cockpit and Engineer.

??The pre-defined work area is the basis for the queries which you can use to gain information about all aspects of your supply chain from the APO system. The transportation lanes in your work area are defined using the model in which you are working.

??In the work area of the supply chain you can select:

??Locations (plant, DC, supplier, customer)

??Resources, production, storage, processing, transportation

??Products

??PPMs (production process models)

© SAP AG AP010 3-8

? SAP AG 2001

? Locations

? Transportation lanes

Objects in the Supply Chain Network

CarrierCarrierMRPMRPareaarea

Stock transferStock transferpointpoint

Transport.Transport.zonezone

SupplierSupplier PlantPlant DCDC CustomerCustomer

??In APO, a location can represent a distribution center, manufacturing plant, supplier location, a customer, a carrier, transportation zones, MRP areas, for example.

??The material flow between locations is modeled via transportation lanes. You map your supply chain via locations and transportation lanes.

??A transportation zone can be used to group together customers, for example, in the form of a location hierarchy. The transportation zone is used in the TLB and in transportation planning. Carriers and stock transfer points are only used in transportation planning. An MRP area is planned in SNP like a production plant.

??Product master records, resources and PPMs (production process models) are assigned to the locations.

??You can map production, storage, transportation and handling capacities via resources.

??DP, SNP and PP/DS PPMs (production process models) are available to allow you to define BOMs and routings.

© SAP AG AP010 3-9

? SAP AG 2001

Cockpit controlsCockpit controls

Network mapNetwork map

Control panelControl panel

Overview mapOverview map

PlanningobjectsPlanningobjects

Application toolbarApplication toolbarAlertmonitoring

Alertmonitoring

WorkareasWorkareas

Supply Chain Cockpit Navigation

??Use this navigational component of the Supply Chain Cockpit to:

??Retain a complete overview of your supply chain model

??Retrieve information from the APO system through queries

??Measure performance with KPIs (Key Performance Indicators)

??Display location, product, resource, PPM and lane data

??Keep track of alert situations

??The three main business tools available from the Supply Chain Cockpit include:

??Queries that facilitate the planning function

??Key Performance Indicators that provide feedback on actual performance

??The Alert Monitor that provides notification of exception messages

© SAP AG AP010 3-10

? SAP AG 2001

Fixed Network Information - Transportation network - Production network

APO Master Data• Products• Resources• Locations• Transportation lanes• Production process model

Business InformationWarehouse• Key PerformanceIndicators - Service level - Supply chain costs

APO Applications - Supply Network Planning - Production Planning - ATP - Demand Planning

Planning Results - Production - Demand - Stock - Transportation - Capacity load

Alert Monitor

Information Retrieval

??Queries facilitate the planning function.

??Key Performance Indicators provide feedback on actual performance.

© SAP AG AP010 3-11

? SAP AG 2001

What was the total profitmade from Gel 250delivered to customer Xfrom DC Milan?

Purpose of Key Performance Indicators

??The APO key performance indicators (KPIs) express abstract supply chain objectives in financial or physical units for comparative purposes. Data pertaining to the various planning and execution processes such as demand planning or product planning is collected, measured, and transformed into physical or financial information that can be used to compare results and thus measure performance.

??For example, a KPI could tell you what percentage of your products were damaged during production. Based on that information, you could set a goal to reduce the percentage of damaged goods by 5%. After implementing the steps necessary to reach the goal, you would again launch a KPI query to check your progress.

© SAP AG AP010 3-12

? SAP AG 2001

? Planning

? Order quantities/values

? Days' supply

? Stock levels

? Material consumption

? Resource load

? Purchasing

? Purchase order quantities

? Delivery time

? Service level

? Vendor evaluation

? Days' supply

? Production

? Lead times

? Date variances

? Scrap

? Delays

? Service

? Credit memos

? Deliveries

? Billing documents

? Returns

Standard KPIs (Selection)

??The slide shows some of the standard KPIs provided by SAP. In addition, you have the option to defin e specific KPIs - tailor-made to your company - in the Business Information Warehouse and to assign them to the Supply Chain Cockpit.

© SAP AG AP010 3-13

? SAP AG 2001

0. Identify key performance indicators (KPIs) Measure performance using KPIs

1. APO: Plan & Optimize

2. Execute

3. Measure performance using KPIs

4. Compare results of KPIs

5. Identify gaps and improve

Key Performance Indicators

??The graphic above depicts the three steps to improving supply chain performance using APO KPIs:

??Plan and optimize in APO

??Execute decisions in an execution system (R/3)

??Benchmark in BW

??The KPI function allows you to track and measure your supply chain performance by retrieving information stored in the Business Information Warehouse (BW) pertaining to your business.

??Performance measurement is a way to determine if your business has improved or not.

??The use of metrics to measure performance is a complex business process that requires careful planning, analysis and a thorough knowledge of the supply chain. For more information on measuring supply chain performance, refer to the SCC1_E.doc, Appendix 1: The SCOR Model.

© SAP AG AP010 3-14

? SAP AG 2001

Exception Windowfor Details

Alert Notification

Alert

Alert Monitor Definition

? Exceptions are calculated using macros and displayed inthe Alert Monitor

? There are standard macros and the option to define yourown alerts

??The role of the Alert Monitor is to inform you of exception cases that occur in your plan. Every situation that has to be adjusted in planning is an exception.

??In Supply Network Planning you have the option to display either database or dynamic alerts. The database alerts show the planning situation as it was at the time of the planning run, while the dynamic alerts reflect the current planning situation.

??The Alert Monitor in Supply Network Planning enables you to display and remove alerts for resources and location products. Typical alerts are: When the resource is too overloaded (over 100% utilization of capacity), when the resource is not sufficiently loaded (less than 50% utilization), backlog, shortfall in safety stock, target days' supply excess/shortfall, customer -specific alerts.

??You retain constant control over your supply chain network because of the alerts you defined and because you have the option to send these by mail. As planner or manager you will be prepared for any problems that occur. You will be informed in time so that you can take the necessary precautions.

© SAP AG AP010 3-15

? SAP AG 2001

Cockpit

Alert Monitor

Example:

ProductionPlanning /Detailed

Scheduling


Problem resolution

APOAlert

Repository

DPDPDP

PP/DSPP/DSPP/DS

ATP

SNP

Alert Monitor Integration

??The Alert Monitor in Supply Network Planning enables you to display and remove alerts for resources and location products. Typical alerts are: When the resource is too overloaded (over 100% utilization of capacity), when the resource is not sufficiently loaded (less than 50% utilization), backlog, shortfall in safety stock, target days' supply excess/shortfall, customer -specific alerts.

??You retain constant control over your supply chain network because of the alerts you defined and because you have the option to send these by mail. As planner or manager you will be prepared for any problems that occur. You will be informed in time so that you can take the necessary precautions.

??You can call the Alert Monitor from the Supply Chain Cockpit, from the menu or directly from interactive planning. Right-click on the alert to go directly to the problem resolution screen.

© SAP AG AP010 3-16

? SAP AG 2001

ATP: Requirements not covered

Resource load (SNP)

DemandPlanning


Production Planning/Detailed

Scheduling

ATP

BusinessInformationWarehouse

DP macro status alerts

Violation ofdue dates

Resource load (PP/DS)

Alert Types

??APO's monitoring component comes equipped with a selection of 20 alert types ranging from product shortage to various capacity overloads. The alert types must be prioritized and assigned to the various APO applications. For example, some alerts apply only to SNP, but others can be assigned to DP and PP/DS as well.

??The Alert Monitor differentiates between alerts in a specific planning version and alerts in general. For example, capacity overload pertains to a specific planning version while Demand Planning alerts are general. Both types of alerts, however, are displayed in the Monitor.

??If you want to show an alert in the SCC, you can assign the alert type to the application. This ensures that the traffic lights in the monitoring slot in the control panel go on. Lights indicate that at least one alert of that priority type exists.

??Since some alert types cannot always be clearly assigned, it can happen that the same alerts may appear under more than one priority light.

??Each alert type can be assigned to any number of applications.

© SAP AG AP010 3-17

? SAP AG 2001

liveCacheliveCache

? Using the BW Business Explorer you can evaluate:

? Order data from the liveCache

? Aggregated data in InfoCubes

Planningarea

Extractionstructure

RemoteCube

DP InfoCubeBusiness Explorer

Evaluations in APO

??You can also evaluate data from APO using the BW frontend.

??It is not only the aggregated actual data from the InfoCubes that are evaluated, but also all of the order and time series objects from the liveCache.

??The prerequisites for 'liveReporting' orders and time series are as follows: a planning area in APO; an extraction structure for the planning area; an infosource, and an SAP RemoteCube that reflects the liveCache data.

© SAP AG AP010 3-18

? SAP AG 2001

You are now able to

Conclusion

? Explain the functions of models and versions inAPO

? Describe the modelling of the Supply Chainnetwork

? Analyze master and transactional data in theSupply Chain Cockpit

? Call alerts from the Supply Chain Cockpit

? Evaluate aggregated historical data

© SAP AG AP010 3-19

Exercises

Unit: Supply Chain Cockpit

Topic: Display and Query


?? Maintain the user settings for the Supply Chain Cockpit

?? Execute queries in the Supply Chain Cockpit and with the Business Information Explorer

Precision Pump company’s supply chain planner can procure all necessary information about the products, locations and resources for which he/she is responsible via the Cockpit.

The group number ## that you need for the following exercises is on your monitor.

1-1 Open the Supply Chain Cockpit with the following entries:

Planning version 000

For model 000

Work area PUMP

Change to the logical view PUMP and analyze the supply chain. Which distribution centers supply the plants 1000 and 2300?

1-2 Display the global master data for the product T-F225 and the master data for the product T-F225 in the distribution center 2400 in the Supply Chain Cockpit.

1-3 Query the stock/requirements list for product T-F225 at location 2400.

© SAP AG AP010 3-20

1-4 Query the transportation lanes permitted for the product T-F225 .

1-5 Open your user settings profile directly from the Cockpit. Enter the SDP alert profile PUMP. Save the profile, go back to the Cockpit and refresh the alert situation. Are alerts displayed? How can you process the alerts?

1-6 Evaluate the aggregated historical data for the product T-F2##. Log on to the APO system using the Business Information Warehouse (BW) Analyzer and open the query SALES DATA for the SALES InfoCube. Find out the extent that Product T-F2##, with Sold-to party 1000, and in Sales Organization 1000, contributed to sales in the past few months.

© SAP AG AP010 3-21

Solutions

Unit: Supply Chain Cockpit

Topic: Display and Query


?? Maintain the user settings for the Supply Chain Cockpit

?? Execute queries in the Supply Chain Cockpit and with the Business Information Explorer

Precision Pump company’s supply chain planner can procure all necessary information about the products, locations and resources for which he/she is responsible via the Cockpit.

The group number ## that you need for the following exercises is on your monitor.

1-1 Open the Supply Chain Cockpit with the following entries:


For model 000

Work area PUMP

Change to the logical view PUMP and analyze the supply chain. Which distribution centers supply the plants 1000 and 2300?

Supply Chain Monitoring ? Supply Chain Cockpit

Enter the input data and select “Use”.

Select the “Fit to objects” button on the left above the graphic to adjust the objects.

Enter the logical view PUMP and select “Logical view”.

If you want to restrict the area further, you can define the zoom area using the left mouse button.

The transportation lanes show you that the plants 1000 and 2300 supply the distribution centers 2400 and 2500.

© SAP AG AP010 3-22

1-2 Display the global master data for the product T-F225 and the master data for the product T-F225 in the distribution center 2400 in the Supply Chain Cockpit.

Choose the Products tab

Right-click on product T-F225 and display the master data for this product: Display ? Product

Select the location 2400 in the graphic and the product T -F225 in the Products tab and display the location product by right-clicking on the product: Display ? Product at location

1-3 Query the stock/requirements list for product T-F225 at location 2400.

Select the location 2400 on the map

Select product T -F225 in the Products tab and right-click to call up the context menu: Call up planning applications ? PP/DS Stock/Requirements List

Check that Product and Plant have green lights in the selection options screen and check which product is selected by clicking on the Display button

Execute the query by clicking on the Execute button

1-4 Query the transportation lanes permitted for the product T-F225 .

Choose T-F225 in the Products tab

Right-click to call up the context menu: Query: Master data ? Transport net - map

1-5 Open your user settings profile directly from the Cockpit. Enter the SDP alert profile PUMP. Save the profile, go back to the Cockpit and refresh the alert situation. Are alerts displayed? How can you process the alerts?

Settings ? User profile

Enter the SDP alert profile PUMP in the Alert Monitor tab.

Save the profile and use the green arrow to go back to the Cockpit.

Press the “Refresh alerts” button and the exception messages are shown in red. Double-click here to go directly to the Alert Monitor and right-click to process the alerts.

© SAP AG AP010 3-23

1-6 Evaluate the aggregated historical data for the product T -F2##. Log on to the APO system using the Business Information Warehouse (BW) Analyzer and open the query SALES DATA for the SALES InfoCube. Find out the extent that Product T-F2##, with Sold-to party 1000, and in Sales Organization 1000, contributed to sales in the past few months.

Call up the BW Analyzer, activate the macros, and press the “Open” icon in the Business Explorer. Log on to your APO system.

Expand the SALES PLANNING info area and the SALES infocube. Select the SALES DATA query and press OK.

You are given an aggregated view of the invoiced sales quantity and invoiced sales value of the three sales organizations. Right-click on the field next to APO product to restrict the evaluation for your product T-F2## via “Select filter value”.

By right-clicking on sales organization you can drilldown the evaluation according to sold-to parties by choosing “Add Drilldown According to” sold-to parties.

By right-clicking on the SALES key figure, you can drilldown the evaluation according to months by choosing “ Filter and drilldown according to” cal.year/month.

© SAP AG AP010 4-1

? SAP AG 2001

Contents:


? Demand Planning Tasks and Functions

? Integration with the Business Information Warehouse (BW)

? Forecast Toolbox

? Lifecycle Planning

? Promotions

© SAP AG AP010 4-2

? SAP AG 2001

Unit Objectives

At the conclusion of this unit, you will be able to:

? Explain how the Business Information Warehouseis integrated with Demand Planning,

? Describe the tasks of Demand Planning,

? Define various forecasting strategies,

? Create a simple sales forecast, and release theresults to Production Planning.

© SAP AG AP010 4-3

? SAP AG 2001


222

333


44

Course Overview

555

666

44

777

888

999


Demand Planning




Conclusion

© SAP AG AP010 4-4

? SAP AG 2001

Business Scenario

? The Precision Pump company will implement APODemand Planning and use it to execute theirmonthly finished product forecasting.

? Consistent planning allows you to enter theforecast data on different planning levels andautomatically consolidate the data in the masterforecast.

? SAP AG

??Demand Planning is a complex, powerful, and flexible tool that supports your company's demand planning process. User-specific planning layouts and interactive planning books not only allow you to include different departments, you can also use them to include other companies in the forecast creation process. With APO Demand Planning you can use statistical forecasting methods and advanced macro techniques to do the following: - Create forecasts from sales history, based on many different causal factors; - Test predefined, and user-defined forecast models, and forecast results; - And use a consensus-based approach to consolidate the demand plans of different departments. You can use forecast overrides and promotions to add marketing intelligence and management adjustments. The seamless integration with APO Supply Network Planning supports an efficient Sales and Operations Planning (S&OP) process.

??Demand Planning is the application component in the Advanced Planner and Optimizer (APO) that allows you to forecast market demand for your company's products. The result of APO Demand Planning is the demand plan.

© SAP AG AP010 4-5

? SAP AG 2001

Advantages of Demand Planning in APO

? Global server with a BW infrastructure

? Integrated exception handling, creation of user defined alerts

? Integration with Production Planning (S&OP scenario)

? Main memory based planning

? Flexible navigation in the planning table, variable drill down

? Extensive forecasting technique

? Promotion planning and evaluation, 'like' modeling

? Collaborative planning via the internet

? Sales Bills of Material (BOMs)

??The Business Information Warehouse (BW) infrastructure includes easy to use features for extracting all the data from execution systems and analyzing it in the SAP BW Business Explorer.

??Macros can be used to perform complex calculations, and to define conditions and exception messages (alerts). Mails can be sent automatically, and status automatically queried.

??In the S&OP scenario, the feasible production plan from SNP or PP/DS is compared with the original demand plan. Deviations are identified automatically and reported to the planner.

??The following statistical procedures are all available for forecasting; Constant model, Trend model, Seasonal model, Trend and Seasonal model, Croston method with exponential smoothing, Linear regression, and Causal models with multilinear regression. External forecasting procedures can also be linked to this.

??"Like modeling" refers to the forecasting of new products using historical data from old products. Life cycle definition is also covered in like modeling.

??You can make each planning book accessible to customers or suppliers over the internet in order to be able to exchange data as soon as possible.

© SAP AG AP010 4-6

? SAP AG 2001

CentralStore

RegionalD/C

CentralStore

RegionalD/C

StorePromotionPromotion

Sales ForceSales Force

PricePrice

AdvertisementAdvertisement

PromotionPromotion SeasonSeason

WeatherWeather

PricePrice

Company 1 Company 2 Customer

Influencing Factors in Demand Planning

? Understanding demand in a dynamic business environment

? Multiple sources of demand plan data such as: internally created forecastsbased on history, forecasts from customers, or point of sale (POS) datadirect from retailers

? Managing all significant factors that influence demand

? Tracking and management of product lifecycles

??The complexity and competitive nature of today's business environment requires organizations to consider many variables when developing a sales and operations plan.

??Multiple sources of demand plan data (e.g. manufacturer forecast is based on a distributor’s sales history, and/or point of sales direct from retailer.)

??Factors influencing demand (sales force size, R&D expenditures, advertising expenditures, price, promotions, seasonality.)

??Demand data can be exchanged with sales organizations, customers, and suppliers over the Internet (Collaborative Demand Planning).

© SAP AG AP010 4-7

? SAP AG 2001

Demand Planning

Sales history,Price, Costs, ...

Forecast

BusinessInformation Warehouse

ForecastForecast ReportingReporting

APOData Mart

APO Integration - Business Warehouse

Demand Planning specific data

? Forecast & planning scenarios

? Causal factors

? Lifecycle patterns

? Seasonal patterns

? Promotional patterns

Central Data Pool

? Summarized data

? POS, order, and shipmentdata

? Syndicated POS data

? Cost information

? ...

??SAP's Business Information Warehouse (SAP BW) is contained in the APO scope of supply and is completely integrated with it.

??If you are going to execute extensive reporting, it is a good idea to set up an independent BW server, and only transfer the data that is relevant for planning to the APO system.

??As data structures in BW and APO are identical, you can also evaluate APO data with the BW frontend.

© SAP AG AP010 4-8

? SAP AG 2001

Demand Planning Concept


R/3ExcelNon-SAP system

? Incoming ordervalue? Quantities

? Values

? Invoice? Quantities

? Values

?…

?Statistical forecasting

?Collaborative forecasting

?Promotions

Sold-to party

Product hierarchy

Location

Region

Sales organization

BW




© SAP AG AP010 4-9

? SAP AG 2001

time sequence

Aug. Sept.

W32 W33 W34 W35 W36 W 3 7 W38 W 3 9 W 4 0 W41

124

203

Material

Cus

tom

er

Period

Product Groups

Regions

Planning & Reporting

? Consistent planning (top down,middle out,bottom up)

? Slice & dice

? Drill downs & ups

? Multiple demand plansto be simulated

? Standard forecast accuracyanalysis

??Planning supports online simulation in multiple planning scenarios, consistent planning throughout your enterprise (top down, middle out, or bottom up), drilling up and down, aggregation and disaggregation, and slice-and-dice techniques.

??Consistent planning means that planning data on all planning levels can be consistently held (automatic aggregation and disaggregation).

© SAP AG AP010 4-10

? SAP AG 2001

The Planning Table

Title viewKey figure 1

Key figure 3

Key figure 2

Key figure 4

Key figure 5

Object 1 Object 2 Object 3

Object 4

GraphDesign Capacity Leveling

APO - Product Total APO - Location Total

W 24

W 25

W 26

W 28 W 27

ID Object Text

Text 1Text 2Text 3

Text 4

Selection profile

UserSelection ID

Planning bookData views

Macros

Selection

Selected objects

Standard selections

Header information

Right mouse button:additional settings

??The APO modules Demand Planning and Supply Network Planning have a standard user interface. It consists of two significant components: the selection range and the work area.

??The selection range (Shuffler) is the window, where you choose the InfoObjects to be planned.

??In the Shuffler, you can save commonly used selections, and load existing selections. To open the Shuffler, choose the symbol selection window.

??The selection profile displays all the selection IDs which have been assigned for the planner. The planner can access commonly used selections quickly using the selection IDs.

??In the data view area, you choose your planning books, and views. You can define a filter for available planning books and views.

© SAP AG AP010 4-11

? SAP AG 2001

Calculations in Demand Planning

? Calculate deviations

? Make automatic corrections

? Calculate sales budgets

? Define your own exceptional situations

? Launch status queries

? Send mails

You can use macros to:

??Macros perform complex calculations quickly and accurately. The extreme flexibility of the macros allows the planner to model a planning environment based on individual business tasks.

© SAP AG AP010 4-12

? SAP AG 2001

Statistical Toolbox

? Univariate Forecasting

? Moving average

? Models (constant, seasonaltrend, seasonal)

? Exponential smoothing

? Seasonal linear regression

? Holt-Winters

? Croston's method (for sporadicdemand)

? Causal Analysis

? Multiple linear regression

? Composite forecasting

? Weighted average of multiplemodels

??The product portfolio of a company covers a variety of products in different stages of their lifecycle and with different demand types.

??APO Demand Planning offers a "toolbox" of proven forecasting methods. The system allows you to choose the best method for a specific demand type.

??Composite forecasting extends the idea of pick-the-best; with this technique you combine two or more methods.

??Croston's method allows you to model "lumpy" (sporadic) demand.

??The statistical forecasting toolbox provides all the features you require to efficiently create accurate forecasts, including everything from data analysis via time series models through multiple linear regression.

© SAP AG AP010 4-13

? SAP AG 2001

Lifecycle Management & Like Modeling

Actual data of the old product

Forecasting of the new product

Lifecycle

Time

Sales

Like

??You use lifecycle planning and "Like" modeling to forecast the launch (phase-in) and discontinuation (phase-out) of a product.

??A product's lifecycle consists of different phases: launch (phase-in), growth, maturity, and discontinuation (phase-out). This process models launch, growth and discontinuation phases.

??For all characteristic value combinations, you can use either a "like" profile, a phase-in profile, or a phase-out profile, or any combination of these.

??If the phase-out profile period is within the history horizon of the master forecast profile, the system adjusts history input values, displays the adjusted values in the original history and corrected history key figures, and writes the adjusted values in the corrected history.

??If the phase-in profile period is within the future horizon of the specified master forecast profile, the system adjusts baseline (original) forecasts, and writes the adjusted values in the corrected forecast key figure.

© SAP AG AP010 4-14

? SAP AG 2001

Forecast simulation

Sales

Profit

Total sales:

Total profit:

Promotion 1

Price

Quantity

-10%

Promotion patterns

’95

’97

’96

’98PlannerPlanner

Promotion Planning

??Promotions can have a major impact on consumer behavior.

??In APO Demand Planning, you can plan promotions or other special events independently of the rest of your forecast.

??Use Promotion Planning to record either one-time events, such as the millennium, or repeated events such as quarterly advertising campaigns. Other examples of promotions are trade fairs, coupons, free-standing inserts, competitors' activities, market intelligence. Examples of events that also have an impact on consumer behavior are upward/downward economic trends, and acts of nature, such as hurricanes, and tornadoes.

??Promotional uplifts can be defined in units or percentages by common promotion patterns. The effect of a promotion pattern that occurred in the past can be automatically detected using sales history or estimated by the planner. A promotion pattern can be archived in a promotion catalog; it can therefore be reused if a promotion of the same type is repeated. A copy function in the promotion catalog also supports "like" modeling of "like products," "like regions", and so on. There are several techniques available to determine the impact of a historical promotion. One suc h technique is multiple linear regression with or without a trend or seasonality.

© SAP AG AP010 4-15

? SAP AG 2001

Release of Sales Quantities as PlannedIndependent Requirements

Demand Planning Production Planning

Key figure: sales quantityPlanned independentrequirements

SNPPP/DS

Production quantitiesKey figure: feasiblesales quantity

MacrosAlerts

??Once the various stakeholders in the forecast have reached a one-number, consensus plan, you release the demand plan as a planned independent requirement.

??You release the demand plan from Demand Planning (DP) via either the demand planner or the SNP planner.

??This release causes planned independent requirements to be created in the order liveCache. These anonymous demands form the basis of SNP, or PP/DS, where BOM explosion, capacity planning, and sourcing are carried out for the complete supply network.

??After feasibility of the planned sales quantities in SNP or PP/DS has been checked, the results can be transferred back to Demand Planning. Macros are used to analyze the differences between the demand plan and feasible quantities and alerts are generated if large differences occur.

© SAP AG AP010 4-16

? SAP AG 2001

You are now able to:

Demand Planning: Unit Summary

? Explain how the Business Information Warehouseis integrated with Demand Planning

? Describe the tasks of Demand Planning

? Define various forecasting strategies

? Create a simple sales forecast, and release theresults to Production Planning.

© SAP AG AP010 4-17

Exercises

Unit: Demand Planning

Topic: Interactive Planning

At the conclusion of this exercise, you will be able t o:

?? Evaluate historical data

?? Create a sales forecast including corrections

?? Release the demand plan to Production Planning

The Precision Pump company is creating a demand plan to provide planned independent requirements for Supply Network Planning. This plan uses a statistical forecast based on historical data, and includes input from regional sales managers.

1-1 Go to Demand Planning. Open the selection window and, under “Show”, select “APO PRODUCT”. Version 000 is already displayed automatically. In the next row, enter APO - Product once again, and on the right-hand side enter your product T -F2##. Load the data for the product into the planning table.

1-2 Perform a univariate forecast and analyze the graphic results. The seasonal pattern that occurred in the past has been extrapolated into the future. Go back to the planning table.

1-3 For three months from now enter a manual correction of 100 pumps. Check that the correction is automatically added to the demand plan. Save your plan.

© SAP AG AP010 4-18

1-4 Release your demand plan to Production Planning. Use the “RELEASE” variant, and enter your product T-F2## and the horizon. Which locations have had planned independent requirements created for them?

Field Name Input Data

Planning area SALES


Key figure FINFOR


Category FA

Horizon The next 3 months

Daily buckets profile 90 days

Product T -F2##

1-5 Make sure that planned independent requirements have been created in the LiveCache. Go to PP/DS product view for version 000, product T-F2##, and location 2400.

© SAP AG AP010 4-19

Solutions

Unit: Demand Planning


1-1 Go to Demand Planning. Open the selection window and, under “Show”, select “APO PRODUCT”. Version 000 is already displayed automatically. In the next row, enter APO - Product once again, and on the right-hand side enter your product T -F2##. Load the data for the product into the planning table.

Demand Planning ? Planning ? Interactive Demand Planning

The selection window is the second icon in the top left. Open the selection window and, under “Show”, select “APO PRODUCT”. Version 000 is already displayed automatically. In the next row, enter APO - Product once again, and on the right-hand side enter your product T-F2##. Select “Adopt”, and your selection will be adopted by the selection window.

Double click on your product T-F2##. Entries can now be made for this selection in the planning table rows.

1-2 Perform a univariate forecast and analyze the graphic results. The seasonal pattern that occurred in the past has been extrapolated into the future. Go back to the planning table.

Click on the “STAT” symbol and the forecast is calculated automatically. Select the “Switch table/graphic” button, and the forecast results plus historical data will be displayed graphically.

To get back to the original table, click on the green “back” arrow.

1-3 For three months from now enter a manual correction of 100 pumps. Check that the correction is automatically added to the demand plan. Save your plan.

In the “Correction” key figure, type in 100.

The total from the “Forecast” plus “Correction” key figures is displayed in the “Demand Plan” key figure. Save your plan and exit the table.

© SAP AG AP010 4-20

1-4 Release your demand plan to Production Planning. Use the “RELEASE” variant, and enter your product T-F2## and the horizon. Which locations have had planned independent requirements created for them?

Demand Planning? Planning ? Release to Supply Network Planning

Select the “Get variant...” button and choose the RELEASE variant. Enter your product T-F2##, and choose Execute.


Planning area SALES


Key figure FINFOR


Category FA

Horizon The next 3 months

Daily buckets profile 90 days

Product T -F2##

Planned independent requirements are created for Distribution Centers 2400, and Plant 1000.

1-5 Make sure that planned independent requirements have been created in the LiveCache. Go to PP/DS product view for version 000, product T-F2##, and location 2400.

Production Planning ? Interactive Production Planning ? Product View

Enter version 000, product T-F2##, and location 2400. Continue. Your monthly planned sales quantities have been transferred here and distributed over days.

© SAP AG AP010 5-1

? SAP AG 2001

Contents:


? Distribution Network and Process Flow

? Master Data Requirements

? Planning Methods

? SNP Heuristic

? SNP Optimizer

? Capable-to-Match

? Deployment (distribution detailed planning)

© SAP AG AP010 5-2

? SAP AG 2001

Unit Objectives


? Describe the Supply NetworkPlanning distribution network

? Explain the Supply NetworkPlanning process flow

? Identify master data that is requiredto run Supply Network Planning

? Describe and compare SupplyNetwork Planning planning methods

? Explain the function of deployment

© SAP AG AP010 5-3

? SAP AG 2001


444

333


55

Course Overview

222

666

55

777

888

999


Demand Planning




Conclusion

© SAP AG AP010 5-4

? SAP AG 2001

Business Scenario

? The Precision Pump Company is implementingSupply Network Planning (SNP) to plan, in the mid-to long-term, the material flow of critical materialsthrough the entire supply chain.

? Production and storage resources should beconsidered finitely and simultaneously.

? This planning is used to guarantee the procurementof parts with long delivery time and the effective useof resources, in order to improve customer serviceand to minimize inventory and lead times.

? Precision Pump company uses deployment to matchstock transports to supply and demand when thereare short-term changes.

? SAP AG

© SAP AG AP010 5-5

? SAP AG 2001

? Multi-site mid-term rough-cut planning

? Simultaneous material planning and finite capacity planning ofproduction, storage and transportation resources

? Simultaneous production planning and distribution resourceplanning

? Planning of critical components on bottleneck resources

? Cross-plant optimization of the resource load

? Prioritization of demand and supply

? Collaborative procurement planning via the internet

? Distribution detailed planning (deployment)

? Collective conversion of stock transport requisitions

Benefits of Supply Network Planning in APO

© SAP AG AP010 5-6

? SAP AG 2001

Planning HorizonDemand Planning (DP)




Deployment

Transportation Planning (TP/VS) / TLB

APO Planning Sequence

??The tasks of the individual APO modules can be summarized as follows:

??DP is used for long-term unconstrained planning of the future demand plan

??SNP is used for mid-term planning of feasible cross-plant procurement and production

??PP/DS optimizes production in the plant in the next few weeks according to sequences and setup times

??Deployment and the TLB (Transport Load Builder) are functions of the SNP module for short-term replenishment planning. Deployment and the TLB adjust stock transfers according to short-term changes on the demand or supply side.

??In Transportation Planning, routes and vehicle utilization are optimized.

© SAP AG AP010 5-7

? SAP AG 2001

Aims of SNP Planning

? SNP Planning plans the mid- to long-term horizon. It creates arough quantity-based, cross-location production anddistribution plan with individual rough bills of material (BOM)and routings.

? The SNP BOM contains critical products that are produced onbottleneck resources and products with a long replenishmentlead time.

? SNP ensures that the right quantity is available on the right daywithout critical resources being overloaded. The smallest unitused for scheduling is days.

© SAP AG AP010 5-8

? SAP AG 2001

Supplier WH

ManufacturerDC

Customer DC

Production process model

Production plant

Supplier plant

Beyond Traditional Planning


??The stock and previously-planned receipts for finished products and components of all connected OLTP systems are known by SNP.

??Various planning methods can be used to create cross-location, feasible plans for the material flow along the supply chain, taking account of constraints and penalties. The result is optimal purchasing, production, and distribution decisions, reduced inventory levels, and improved customer service.

??Possible constraints are, for example, material availability and unrestricted availability of work center, storage, transportation and handling capacities.

© SAP AG AP010 5-9

? SAP AG 2001

Supplier CustomerDCPlant

Locations in the Supply Network

CarrierMRParea

Stock transferpoint

Transportationzone

? Locations are only differentiatedby the location type that controlsthe symbol on the map(exception VMI)

? Products can be stored at everylocation

? Demands can be fulfilled fromeach location

? You can maintain storage,handling, transportation andproduction capacities for eachlocation

? Storage cost per unit for eachproduct

? Purchasing cost per unit foreach product

??Production, shipping and storage calendars can be defined for each location.

??A handling and a storage resource can be associated with a location to represent aggregate handling and storage capacity.

??The geographical data is used to position the location on the geographical map of the Supply Chain Engineer. Predefining it as a part of the location data forces the location to be positioned at a specific point on the map. If you leave these fields blank, they are filled automatically when you place the location on the map.

??The VMI customer tab only applies to the location type '1010 customer'. The carrier tab is only activated when you select the location type '1020 carrier'.

??Input fields that are not available to other location types are activated for location type '1007 MRP area'.

??For each location you can define costs for storage, handling, procurement and production as well as penalties for non-delivery. Procurement costs are used to select suppliers and production costs for selecting PPMs. An integrated examination of the costs is carried out during the SNP optimization run.

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Transportation lanes control the material flow alongthe supply chain

Transportation Lanes

? Procurement

? Transportation method

? Products that can be carriedby a transportation method

? Transportation capacity byvolume, weight, pallets

? Transportation costs per unit,product and transportationmethod

??A transportation lane in APO represents a business relationship between the locations that you can use to transport goods. The relationships and the locations represent the supply chain network. The direction of the transportation lane from source to target location defines the material flow. These transportation lanes enable you to:

??Define the product procurement parameters like lot sizes, cost functions, unit costs and lane priorities

??Define the transportation methods (truck, ship, airplane, etc) for each lane and the related parameters like transportation costs, distances and times

??Assign product-specific transportation methods

??Assign carriers to the lanes

??You can query the lane relevant data via the Supply Chain Engineer menu or on the map. For example, you can display a list of all products that are assigned to a specific lane.

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TransportationProduction

Storage Handling

Resource Categories

??You can model additional bottlenecks in your supply chain using bucket resources.

??For period-oriented short- and mid-term planning in Supply Network Planning you use bucket resources that you plan in detail based on days.

??You can define the capacity of a bucket resource as

??Quantity (without time base) - this defines the transportation capacity of a truck or the storage capacity of a warehouse, for example.

??Rate (quantity with time base) - this defines the consumption or production capacity of a resource, for example; in other words, the quantity that is consumed or produced on a working day at the resource.

??You can use transport bucket resources to model the capacity of transport fleets in order to avoid overloading them.

??You can use storage bucket resources to model the capacity of storage locations in order to avoid overloading them.

??You can use handling bucket resources to model the capacity of forklifts, conveyor belts or pipelines in order to avoid overloading them.

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Structure of Plan and PPM

Operations:

? Material staging

? Pre-assembly

? Final assembly

? Inspection

Activities:

? Produce

? Tear down

? Queue time

? Product

? Relationship

? Resources

In / Out

Resource consumption

PPM: Product, location,lot size area

$

Sequence

Plan (location independent)

Control costs

??The detailed information required for producing a product is specified in the plan. Each plan includes one or more operations. Each operation includes one or more activities, the components consumed by the activity, the resources used and their sequence within the operation.

??The plans used for Supply Network Planning (SNP) are usually rougher than those used for Production Planning/Detailed Scheduling (PP/DS). They contain:

??The variable costs contain all production costs.

??Activity type: P (system always considers operations as production)

??Consumption mode: S (system always considers consumption at start of activity)

??Resources:

??Unit of measure must be the same unit as in the resource itself

??Fixed duration for scheduling: 1 day means that the activity lasts one day, for example.

??Variable resource consumption: Time to produce one base quantity of material.

??PPMs that determine the location, lot size, and time interval for which the plan is valid are assigned to the plan.

??A consistency check can be performed manually but is always executed when saving the PPM. If there are inconsistencies, the PPM cannot be activated.

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Perform SNP Heuristic,Optimization, or CTM run

Finalize SNP plan(available to PP / DS)

Check plan/solve problems

Deploymentrun

Release constraint-based SNP plan

to DP

TLB run

Build loads fornon-assigned

transport orders

Set up master data andsupply chain model

Release demandplan

SNP Planning Sequence

??Planned independent requirements are generat ed for SNP or PP/DS when the demand plan is released from Demand Planning. This step can either be carried out using the demand planner or the SNP planner.

??Performing the SNP run using the SNP Heuristic, SNP optimization, or Capable-to-Match (CTM) results in a mid-term production and distribution plan.

??After the SNP run, check the exception messages (alerts) and resolve any problems that occur.

??The final SNP plan consists of purchase requisitions, stock transport requisitions and SNP planned orders. You can automatically convert the SNP planned orders into PP/DS planned orders in the production horizon. Production Planning and Detailed Scheduling (PP/DS) then starts with these PP/DS planned orders to remove detailed constraints and bottlenecks and to create a feasible production plan.

??The final SNP plan can be released back to DP for comparison of the unconstrained demand plan with the feasible SNP plan. If the differences between these two plans are too great, you can use a macro to trigger alerts so that the demand planner plans his forecasts again.

??After production planning has been completed, the deployment run confirms the stock transport requisitions based on current supplies and demands.

??The TLB run groups the stock transport requisitions resulting from the deployment run into stock transport orders.

??You can build stock transport orders manually for stock transport requisitions that could not be taken into account during the TLB run due to specified threshold values.

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SNP Planning Functionality

? Mid- to Long-Term Planning Methods

? Heuristic

? Capable-to-Match (CTM)

? Optimization

? Propagation

? Deployment (short-term Replenishment Planning)

? Heuristic

? Optimization

? Transport Load Builder

? Grouping of Stock Transfers

??The following planning scenarios are supported by Supply Network Planning:

??Supply Network Planning creates feasible mid-term procurement, production and distribution plans.

??Deployment distributes stock and available receipts to distribution centers and vendor-managed inventory (VMI) customers.

??Transport Load Builder converts the stock transport requisitions used by deployment into stock transport orders, taking account of transportation capabilities.

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Heuristic Scenario

1. Demandno stock

2. Demandno stock

? Quantity-based, rapid, multi-site planning

? MRP II concept (planning against infinite capacity)

? Time-based aggregation to weekly splits, for example

3. Explosion of planCreation and scheduling of

receipts

4. Valid transportationlanes, quota

arrangements, priorities

??The role of the Heuristic involves:


??Integrating purchasing, production, and distribution in one consistent model

??Modeling the entire delivery network

??Synchronizing activities and planning material flow throughout the supply chain

??The slide shows an example of the Heuristic:

??There is a demand in the customer location. The net requirements calculation does not find any stock. The product is procured externally. The system analyzes the possible transportation lanes.

??There is also no stock in the distribution center so the Heuristic checks the possible transportation lanes in the plant.

??There is no stock in the plant, so the SNP plan is exploded and a planned order is created for the finished product and dependent demands for the components.

??Procurement for the components then occurs via the possible transportation lanes and quota arrangements or priorities.

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1. Day 2. Day 3. Day 4. Day 5. Day

Capacity load

100 %

BACKWARD FORWARD

Time-Based Capacity Leveling

Capacity Leveling

??The planner can use the following methods to adjust the plan:

??Backward shift of capacity load to satisfy demand with high priorities without due date violations. However, rescheduling does not create any orders in the production horizon. Forward shift of capacity load related to demand with lower priorities and minimization of due date violations based on demand priorities.

??A combination of backward and forward shift of capacity load.

??If you choose a time-based capacity leveling option, you can select various priority rules:

??If you do not select a priority rule, the priority is determined by the system and is completely random.

??If you choose Time-Based Capacity Leveling by decreasing order quantity, the system first adjusts the largest order, then the second largest, and so on. If you choose Time-Based Capacity Leveling by increasing order quantity, the system adjusts the smallest order first, then the second smallest, and so on.

??If you choose Time-Based Capacity Leveling by decreasing stock range of coverage, the system first adjusts the order with the largest stock range of coverage, then the one with the second largest range, and so on. If you choose Time-Based Capacity Leveling by increasing stock range of coverage, the system adjusts the order with the smallest range of coverage first, then the one with the second smallest range, and so on.

??If you choose Time-Based Capacity Leveling by decreasing product priority, the system first adjusts the order with the highest priority, then the one with the second highest priority, and so on. If you choose Time-Based Capacity Leveling by increasing product priority, the system adjusts the order with the lowest priority first, then the one with the second lowest, and so on. The product priority is maintained in the product location master record on the SNP2 tab.

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CTM Scenario

1. Demand withhighest priority,no stock

3. Strategy: Search for surplus stockResult: No stockATP rule: Substitution productResult: No stockProduction: Search for availablecapacityResult: No resource available

4. Strategy: Search forsurplus stockResult: Stock

5. Stock transfercreated

2. Transp. lanehighest priority

??This slide shows the determination of feasible receipts for the demand with highest priority. CTM gradually checks the feasible receipts, whereby you can define the sequence of checks via rules. CTM takes the first feasible solution.

??CTM considers:

??Prioritized single requirements

??Production capacity and not handling, storage or transport capacities

??Splitting production between resources

??Component availability

??CTM is order-based planning that uses pegging methods to trace orders back to the individual requirement. In Supply Network Planning no order-based planning takes place; rather, quantity planning takes place. After the optimization run (or after the heuristic run), no information relating to connections between particular planned production orders and original sales orders can be determined.

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PrioritizedDemands Demands

1.2.3.4.

5.6.

7.8.9.

10.11.

Demand Prioritization

Priority Order Date Customer Product

1

2

3

KAUF

KAUF

forecast

1.3. 2001

1.4. 2001

Baker

Baker

P-102

P-102

P-1021.2. 2001 DC1

? The sort can be carried outaccording to:

? Customer (location) priority

? Product priority

? Order type

? Due date

? Demand selection

? CTM work area

??CTM prioritizes current demands based on order category (for example, sales order (KAUF) and demand planning forecasts), due date and the defined priorities.

??The sequence of the priority criteria is of great importance for processing demands in the CTM run. Note: If no priorities are set, prioritization occurs on a first come, first-served basis by due date.

??You can simulate demand prioritization and check the results.

??Below is a list of possible prioritization criteria: Maximum number of partial deliveries allowed per item, stock / receipt / demand / forecast categories, confirmed quantity, ATP, BOP: confirmation share, CTM quantity, order / MRP element number, order / MRP element item, date on which the record was added, delivery group (items are delivered together), location, ATP, BOP: delivery date, delivery priority, location, location product number priority, product priority, material staging date, item type sales document, ATP, BOP: user exit priority, sales document type, requested quantity.

??The sort within a prioritization criterion can be descending, ascending or user-defined.

??Define your demand selection in the CTM profile. (Multilevel Supply & Demand Matching > Planning > Planning CTM > Demands tab) or (Multilevel Supply & Demand Matching > Environment > Current Settings > Demand Prioritization > Sort Profile)

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1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

CategorizedSupplies

PrioritizedDemandsCapable-to-Match

Multi-site capacity andtransportation capability check

CTM Results

??The CTM planning run is powered by the CTM engine, which matches the prioritized demands to the available stock and receipts. Then it matches receipts and demands, taking account of production capacities and transportation capabilities.

??Performing the CTM planning run in the SNP environment generates a mid-term production and distribution plan.

??CTM complements SNP's multi-site supply chain planning strategies. Its purpose is to perform a quick check of production capacities and transportation capabilities based on a preprocessed set of categorized supplies and prioritized demands.

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The Principle of the Optimizer

Product requirementspriorities, resources,

horizons

Simultaneous productand resource

planning

Feasible receipts: planned orders, stock transfers andpurchase requisitions

Optimizer

Result:

? Constraints:

? Customer priority

? Product priority

? Production capacity

? Storage capacity

? Transportation capacity

? Lot sizes

? Safety stock

??The Optimizer uses linear programming to consider all relevant factors simultaneously as one problem. The Optimizer compares alternative solutions for the incurred costs and proposes the best feasible solution based on constraints defined in the system. You use the control costs to also configure your priorities such as minimizing delays or minimizing on-hand stock. The Optimizer considers all constraints in the supply chain model that were activated in the optimizer profile. As more constraints are activated, the optimization problem becomes more complex and the time required to solve this problem increases.

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Aims of Optimization

What should be optimized

Costs - optimal

Prerequisite: "real" variablecosts or adequateestimate

Non-delivery costs := Sales price + surcharge for customer loss/dissatisfaction

Service level - optimal

Prerequisite: "simplified" costs accepted (Control costs)

Non-delivery costs (NC) := highStorage costs := > 0, << NCOther costs := << NC

??Service level - optimal on this slide shows the simpler configuration made by the Optimizer. You maintain high non-delivery costs (NC) and storage costs for the finished products via mass maintenance. The high non-delivery costs force the Optimizer to exhaust all possible procurement and production capacities to satisfy the demands. The storage costs make sure that procurement and production are carried out as late as possible.

??Costs - optimal on this slide shows the more complex configuration made by the Optimizer. You maintain realistic costs for procurement, production, transportation and storage. You model lost sales and customer dissatisfaction via delay and non-delivery costs. In this scenario the Optimizer uses the costs to determine the most cost-effective integrated solution.

??The result of the optimization run is an optimal solution (minimum costs or maximum profit) taking account of planning-relevant transportation, production, storage and handling constraints. In that sense, the solution is feasible. However, the result might be that due date constraints are violated or safety stocks are not filled. Due dates and safety stocks are considered to be soft constraints. There are costs associated with such violations, so the Optimizer only proposes this solution if, according to the costs specified in the system, it is the least costly solution.

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30

Costs Penalty costs forlate delivery

Optimizer Decisions

? Where will procurementtake place?

? Where will production takeplace?

? When will production takeplace?

? What will be produced?

? Where will transportationtake place?

? When will transportationtake place?

? Where will the product bestored?

? How long will the productbe stored?

??The essence of optimization is finding the best feasible solution. For example, is it less costly to deliver two days late or to produce three weeks early? The challenge with optimization is to properly define the relevant costs (for example, cost of late delivery). You can fine-tune the relative importance of different cost types via the cost profile.

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Demand at a location

Dependent demand at loc.

Processing flow

Heuristic: Optimizer:

CTM:

SNP Strategies: Comparison (1)

??The Heuristic is a rapid infinite planning method that generates alerts when there is a material shortfall or resource overload.

??CTM is a rules-based method with extensive prioritization capabilities and finite, global planning of production resources. CTM is order-based planning that uses pegging methods to trace orders back to the individual requirement.

??The Optimizer considers material and resource availability simultaneously. It uses linear programming to consider all relevant factors simultaneously as one problem. In other words, there is no sequential processing in the determination of a solution. The Optimizer considers transportation, production, storage, and handling costs to propose a minimum cost solution that meets the respective constraints.

??The lack of pegging of orders back to the individual requirement has the following repercussions: In Supply Network Planning no order-based planning takes place. After the optimization run (or after the Heuristic run), no information relating to connections between particular planned production orders and original sales orders can be determined (CTM can, however, provide such information via order tracing).

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Speed

Quality

Prod. resources

Other resources

Multi-level

Costs

Priority

Quota arrangements

Heuristic Optimizer CTM

+

-

2. Step, local

2. Step, local

+

-

-

+

-

+

global +

global +

+

+

Product/location

creates

?

?

global +

-

+

-

Location / prod.+

+

SNP Strategies: Comparison (2)

??The performance of the three planning methods can be divided up roughly as follows: The Heuristic is the fastest method, CTM is in the middle and the Optimizer is the most complex and the slowest method. This is just a rule of thumb. If you plan a lot of orders per period and location product, the performance of CTM and the Optimizer can be compared since planning in CTM is order -based.

??The quality of the heuristic planning result is poorest (infinite!), next comes CTM (rules), and you should expect the best result from the Optimizer that weighs up all possibilities of this algorithm.

??Production resources are considered globally and finitely by the Optimizer and CTM, while the infinite planning result of the Heuristic must be postprocessed interactively.

??Transportation, storage and handling resources can be considered globally and finitely by the Optimizer, while the infinite planning result of CTM and the Heuristic can be postprocessed interactively.

??All methods can plan all BOM levels automatically.

??Costs are only relevant to the Optimizer.

??Priorities control CTM. There are product, location, order and due date, procurement and stock transport priorities. You set priorities for the Optimizer via the penalty costs for late delivery and non-delivery of the location products.

??Quota arrangements are used by the Heuristic and CTM. They can be optimized using the Optimizer.

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Planning Process

Planning Horizon


Demand Planning

Production Planning / Detailed Scheduling

Transport LoadBuilder

Recommendedstock transportrequisitions

Forecast

Deployment

Stock transportorder

Planned orders

Firmedstock transport requisitions

??Deployment determines which demands can be fulfilled by the existing supplies. If the produced and procured quantities as well as the demands match SNP planning, the result of deployment is a confirmation of the SNP plan. If the available quantities are not sufficient to meet the demand, the system makes the necessary adjustments according to whether you are executing the deployment heuristic or deployment optimization.

??The Transport Load Builder (TLB) then groups these confirmed quantities together into stock transport orders.

??Deployment and the TLB confirm the OLTP stock transport requisitions and can convert them into stock transport orders or VMI sales orders. Via Customizing -> APO -> Supply Chain Planning -> Supply Network Planning (SNP) -> Basic Settings -> Configure Transfer to OLTP Systems you can configure if transfer should take place using deployment or the TLB.

??Deployment and TLB are simply used to confirm stock transfers. Everything beyond this, such as route planning, selection of carriers and generation of deliveries and transportations in the OLTP system, is planned in TP/VS (Transportation Planning and Vehicle Scheduling).

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Heuristic

Optimization

Deployment: Heuristic versus Optimization

? Heuristic

? Started for one plant

? Product by product

? Optimization

? Focus on network

? Product by product

? Coverage maximization

? Cost-based optimization

??The deployment function in SNP determines how and when inventory should be deployed to distribution centers, customers, and vendor-managed inventory (VMI) accounts. It produces optimized distribution plans based on constraints (such as transportation capacities) and business rules (such as minimum cost approach, or replenishment strategies).

??A variety of deployment strategies are used depending on the current situation (e.g., fair share, push deployment, pull-push deployment, and minimum cost flow optimizat ion).

??The Heuristic has a hierarchical view of the supply chain network: Deployment is always carried out from one delivery location to the receiving locations (DCs or customers).

??The deployment heuristic calculates a replenishment plan for a product in a delivery location. If the available quantities are not sufficient to fulfill the demand, the system determines the distribution plan based on fair share rules. If on the other hand supply exceeds demand, the system uses push rules to determine the distribution plan. Fair share and push rules are defined in the deployment profile.

??Deployment optimization has the integrated view of the receipt situation of all delivery locations and the demand situation of the receiving locations.

??The deployment optimization run calculates a replenishment plan for a product in all locations within the network. If the available quantities are not sufficient to fulfill the demand or supply exceeds demand, the system uses minimum cost flow optimization to determine an optimum distribution plan for the whole network at once.

??Deployment optimization works like SNP optimization except that the production and procurement quantities are not changed.

© SAP AG AP010 5-27

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DC2

DC1

Plant

Deployment adjusts the stock transfers for short-term changeson both the supply and demand side (distribution detailed planning).

Deployment

? Fair Share

? Proportional allocationaccording to demands

? Proportional allocationaccording to target stocklevel


? Push deployment

? Based on future demands


??There are several deployment and allocation strategies: fair share, push deployment, pull-push deployment, and minimum cost flow optimization.

??If demand exceeds supply, use a fair share allocation.

??If demand is less than supply or excess inventory exists, use a push strategy to be able to transfer stock as early as possible.

??When excess inventory exists, surplus stock can be distributed according to push logic.

??For pull/push deployment rules, the demand horizon restricts the future demands that can be delivered early.

??Set the pull horizon on the demand profile; set the push horizon on the supply profile.

© SAP AG AP010 5-28

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Deployment Results

Plant to DC1Plant to DC 2Plant to DC 1Plant to DC 2

Date: ATD Quantity: Requirements:

Detailed requirements per DC:

Today

Su

pp

ly

Dem

and

Deployment Result: Fair Share Rule A

05.01.200106.01.200107.01.2001

1000900400

100 (DC1)500 (DC2)800 (DC1+2)

DC1DC2

200600

100500100300

05.01.200106.01.200107.01.200107.01.2001

??The slide shows the result of a deployment heuristic using the fair share rule A that is issued after planning in the background: Today, 1000 units are available in the plant for distribution. The stock transfer for the current demand from DC1 can be confirmed. The stock transfer for tomorrow can also be confirmed. The day after tomorrow, the demand exceeds the remaining quantity in the plant, so the 400 units are distributed using the defined fair share rule A.

??You use the ATD (Available to deploy) quantity to describe the quantity that is determined in the delivering plant for distribution and according to ATP rules. You configure the category groups in Customizing and assign them to the locations. Receipts (ATR) are, for instance, stock, production orders, purchase orders, etc. Issues (ATI) are reservations, etc.

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Objective:Collective conversion of stock transport requisitionsinto stock transport orders in R/3

Transport Load Builder

? Grouped according to

? Products (transportation planner)

? Time (pull-in horizon)

? Transportation zones

? Ensures that minimum requirementsare met for:

? Volume

? Weight

? Number of pallets

??The primary purpose of the Transport Load Builder (TLB) is to use the results of the deployment run (single product transport recommendations) to create multi-product transport orders in a time period for a transportation zone. It should be ensured that:

??The transportation methods are filled to maximum capacity

??No transportation method is dispatched that is not filled to minimum capacity

??For stock transport orders that could not be satisfied during the TLB run due to specified constraints, you can build transport orders manually

??You can create transportation zones for the TLB or transfer them from R/3. You can thereby consolidate your transportation capabilities (for example, use one truck to deliver orders to several locations). You can group several locations together using transportation zones (and thereby create a zone). TLB orders for several locations are regarded as one order for a large location, although individual purchase orders do actually exist for separate locations.

??If you want to use transportation zones, you create a location as a transportation zone in the location master. (From the APO Easy Access menu choose Master Data -> Location. Use the input help (F4) in the Loc.type field of the location master and choose 1005 - transportation zone). You then assign the relevant locations in the hierarchy master to this transportation zone (choose Master Data -> Hierarchy). You can display these location hierarchies in the TLB interactive planning shuffler.

© SAP AG AP010 5-30

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1

Building Consolidated Loads

Days2 3

Half-fulltruck

Full truck(best price) Minimum capacity

??In the Interactive Planning table for the TLB, you can view transport orders generated automatically by TLB for a specific day. If the load does not meet the minimum capacity requirements specified for a full transport load within the specified pull- in horizon, you can manually create transport orders that are planned for later shipment and ship them early in order to build a full truck load.

© SAP AG AP010 5-31

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You are now able to

Supply Network Planning: Unit Summary

? Describe the Supply NetworkPlanning distribution network

? Explain the Supply NetworkPlanning process flow

? Identify master data that is requiredto run Supply Network Planning

? Describe and compare SupplyNetwork Planning planning methods

? Explain the function of deployment

© SAP AG AP010 5-33

Exercises

Unit: Supply Network Planning


At the conclusion of this exercise, you will be able to:

?? Open interactive planning in SNP, run the heuristic and view the capacity situation for a resource

Once a forecast has been generated at Precision Pump Company, the Logistics Planner uses the SNP heuristic to create a rough distribution plan and checks for capacity overloads at the production plants.

1-1 Open interactive planning of Supply Network Planning. Open the selection window and, under “Show”, select “APO Location product”. Version 000 is already displayed automatically. In the next row, enter APO - Product once again, and on the right-hand side enter your product T-F2##. Load the data for the product at location 2400 into the planning table.

1-2 Look at the future periods and check if the planned independent requirements you released for the distribution centers 2400 and 2500 and the plant 1000 are displayed. Analyze in which key figure the planned independent requirements are shown. Make sure that no distributed demands and production orders exist for the production plants 1000 and 2300.

1-3 Run the network heuristic and check the situation for your product T-F2## for the distribution center 2400.

Verify that there are now values in the Total receipts row.

Which plants are supplying the receipts?_______________

© SAP AG AP010 5-34

1-4 Check the capacity situation for resources WT-L##_1000_001 and WT-L##_2300_001 in the Capacity View. Switch data views by dragging the grey bar upwards on the left and double-clicking on data view SNP94(2) “CAPACITY CHECK”.

Open the selection window and, under “Show”, select “APO Resource”. Version 000 is already displayed automatically. In the next row, enter “APO Resource” once again, and on the right-hand side enter your resources WT-L##*. Load the data for a resource into the planning table sequentially. If there are any capacity overloads, run “Capacity Leveling”.

Is there any capacity overload for these resources?_________

If so, when do the violations occur?____________________

1-5 Run optimization for your product T -F2## at all locations. Load all location products with product T -F2## into the planning table. Start the Optimizer with the optimizer profile DISCRETE and the cost profile MASTER. Check the capacity situation again.

1-6 Check if the receipts have been transferred to the connected R/3 System. Log on to the R/3 System and call the stock/requirements list for your product T_F2## in plant 1000.

© SAP AG AP010 5-35


Topic: Deployment

At the conclusion of this optional exercise, you will be able to:

?? Describe deployment’s functionality and how it is used in APO

Precision Pump’s products are distributed to their distribution centers and customers on a daily basis.

Deployment checks the quantity that is available in the next few days for distribution and confirms stock transports that can be made.

1-1* Run deployment for the location 1000 for the next 100 days using mass processing. Reduce SNP transport orders. Write down the result of the deployment run:

_______________________________________________________________

_______________________________________________________________


Version 000

Planning book 9ASNP94

Data view SNP94(1)

Location 1000

Product T-F2##

Deployment horizon in days

100

If you select Orders: Do not change the system will not change the SNP transport orders.

The horizons in the training system are not realistic. In practice, deployment is used to confirm stock transports for the next few days. But in the course we cannot wait until the orders reach the short-term horizon.

© SAP AG AP010 5-37

Solutions



1-1 Open interactive planning of Supply Network Planning. Open the selection window and, under “Show”, select “APO Location product”. Version 000 is already displayed automatically. In the next row, enter APO - Product once again, and on the right-hand side enter your product T-F2##. Load the data for the product at location 2400 into the planning table.

Supply Network Planning ? Planning ? Interactive Supply Network Planning

The selection window is the second icon in the top left. Open the selection window and, under “Show”, select “APO Location product”. Version 000 is already displayed automatically. In the next row, enter APO -Product once again, and on the right-hand side enter your product T-F2##. Select “Adopt”, and your selection will be adopted by the selection window.

Double-click on your product T-F2## for the distribution center 2400. The data for this selection is now displayed in the planning table.

1-2 Look at the future periods and check if the planned independent requirements you released for the distribution centers 2400 and 2500 and the plant 1000 are displayed. Analyze in which key figure the planned independent requirements are shown. Make sure that no distributed demands and production orders exist for the production plants 1000 and 2300.

Display the weeks in the next month and you will see the quantities in the key figure “Total demand”. Only forecasts outside of the forecast horizon contribute to the total demand.

Double-click on the “Total demand” row. The released data is displayed in the key figure "Forecast". All six key figures (forecast, sales order, dependent demand, distributed demands) contribute to the total demand.

Double-click on your product T-F2## for the distribution center 2500. Ensure that demand is displayed.

Double-click on your product T-F2## for the plant 1000. Forecasts are displayed but no production quantities and distributed demand.

© SAP AG AP010 5-38

1-3 Run the network heuristic and check the situation for your product T-F2## for the distribution center 2400.

Verify that there are now values in the Total receipts row.

Which plants are supplying the receipts?_______________

Click on the Heuristic (network) button to run the heuristic.

Double-click on your product T-F2## for the distribution center 2400.

Double-click on the “Total receipts” row.

The stock transports created by the heuristic are displayed in the key figure “DistrReceipt (Planned)”. Right-click on this key figure and select “Display details” to display the receipts from the plants in the lower window.

The production plants 1000 and 2300 supply the distribution center 2400 according to the quota arrangement for the product T-F2##.

1-4 Check the capacity situation for resources WT-L##_1000_001 and WT-L##_2300_001 in the Capacity View. Switch data views by dragging the gre y bar upwards on the left and double-clicking on data view SNP94(2) “CAPACITY CHECK”.

Open the selection window and, under “Show”, select “APO Resource”. Version 000 is already displayed automatically. In the next row, enter “APO – Resource” once again, and on the right-hand side enter your resources WT-L##*. Load the data for a resource into the planning table sequentially. If there are any capacity overloads, run “Capacity Leveling”.

Is there any capacity overload for these resources?_________

If so, when do the violations occur?____________________

Double-click on the data view SNP94(2) “CAPACITY CHECK”.

Double-click on your resource in the selection window to load data for the resource into the planning table.

The aggregated available resource is calculated from the available capacity per workday.

If capacity overloads occur, select “Capacity leveling”; “Capacity leveling by backward scheduling”; “Time-based capacity leveling w/o priority rule”; “Maximum load as a % :100%”, “Ignore firmed quantity”. Save the result and select again.

© SAP AG AP010 5-39

1-5 Run optimization for your product T -F2## at all locations. Load all location products with product T -F2## into the planning table. Start the Optimizer with the optimizer profile DISCRETE and the cost profile MASTER. Check the capacity situation again.

Double-click on the data view SNP94(1) “SNP PLAN”. Open the selection window and, under “Show”, select “APO Location product”. Version 000 is already displayed automatically. In the next row, enter APO -Product once again, and on the right-hand side enter your product T-F2##. Select “Adopt”, and your selection will be adopted by the selection window.

Press the “Select all” symbol above the selection window and load the data by pressing the “Load data” symbol.

Start the optimization run by pressing the “Optimizer” symbol.

Enter DISCRETE for the optimizer profile and MASTER for the cost profile and press “Execute”. When the Optimizer has finished the calculation, the resulting costs are displayed. When you have analyzed the costs, select the green arrow BACK to return to the planning table. Now you can check the resource loads again.

1-6 Check if the receipts have been transferred to the connected R/3 System. Log on to the R/3 System and call the stock/requirements list for your product T_F2## in plant 1000.

SAP standard menu ? Logistics ? Production ? MRP ? Evaluations ? Stock/Reqmts List

Enter your product T-F2## and the plant 1000, for example, and confirm.

The SNP planned orders and releases for the stock transport requisitions are in R/3. The planned independent requirements are not transferred back via CIF but via mass processing in Demand Planning.

© SAP AG AP010 5-41

Unit: Supply Network Planning Topic: Deployment

1-1* Run deployment for the location 1000 for the next 100 days using mass processing. Reduce SNP transport orders. Write down the result of the deployment run:

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

Supply Network Planning? Planning ? SNP in the Background ? Deployment


Version 000

Planning book 9ASNP94

Data view SNP94(1)

Location 1000

Product T-F2##

Deployment horizon in days

100

Select “Orders: Reduce”, and “Log”.

If you select Orders: Do not change the system will not change the SNP transport orders.

The horizons in the training system are not realistic. In practice, deployment is used to confirm stock transports for the next few days. But in the course we cannot wait until the orders reach the short-term horizon.

© SAP AG AP010 6-1

? SAP AG 2001

Contents:

Production Planning / Detailed Scheduling (PP/DS)

? Consumption of planning by sales orders for forecast-controlled products in make-to-stock and make-to-orderproduction

? Simultaneous material and capacity requirements planning atoperation level in the production plant

? Tools for production planning and production scheduling

? Schedule optimization in PP/DS

? Transfer of planning results to the execution system

© SAP AG AP010 6-2

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Course Objectives

At the conclusion of this course, you will be able to

? Describe how sales orders consume planning inmake-to-stock and make-to-order production

? Use simultaneous material and capacityrequirements planning at operation level

? Use the production planning and productionscheduling tools

? Describe schedule optimization in PP/DS

? Transfer the planning results to the executionsystem

© SAP AG AP010 6-3

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444


66

Course Overview

555

333

66777

888

999


Demand Planning



Transportation Planning


Conclusion

© SAP AG AP010 6-4

? SAP AG 2001

Business Scenario

? In Demand Planning, a demand planning forecastwas generated and transferred to the distributioncenter as planned independent requirements.

? After SNP has transferred the requirements via thestock transfer to the production plant, theproduction quantities and capacities must beplanned in the production plant.

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Production Planning & Detailed Scheduling inAPO: Advantages

? Simultaneous material and capacity requirements planning for in-houseproduction, external procurement, and stock transfers in a production plant atoperation level: Fast generation of feasible plans

? Immediate and automatic planning (for example, to trigger production from theplant) - close integration with plant

? Planning with exact times, even for dependent requirements (for example, aprerequisite for material staging by shift)

? Dynamic exception messages in real-time and based on order linking (pegging)across the whole supply chain

? Multi-level capacity requirements planning possible: automatic, multi-level, bi-directional propagation of order changes

? Planning of alternative resources

? Available capacity: time, volumn, length ...

? Consideration of restrictions in planning (for example, supplier capacity)

? Schedule optimization (order sequencing, lead time, etc.)

??Simultaneous material and capacity requirements planning: You can define resources as finite resources in the resource master (resources critical for planning). At these resources, operations of orders are only created if there is enough capacity available for the order quantity on the order date. If there is not enough capacity available, the system searches for a new date, taking the capacity situation into account.

??Automatic planning immediately: If you set this indicator for a product (PP/DS tab in the product master), the system starts a single-level planning run for this product for each change made that is relevant to planning (for example, a new sales order). At the same time (immediately) a multi-level ATP check is performed for the product and for the assembly/components for which automatic planning immediately is defined.

??Planning with exact times: Dependent requirements and orders are created with a time.

??Bi-directional propagation of order changes: If you make time-related changes to orders at, for example, finished-product level, you can specify that the system is to automatically move the assembly orders. If, however, there is not enough capacity at that time for the assembly orders, an exception message can be generated or the order is not moved at finished product level. In the other direction, moving assembly orders can have an effect on finished product orders.

??Planning alternative resources: If not enough capacity is available at a resource, the operation can be rescheduled at alternative resources (maintained in the PPM).

??Schedule optimization: During planning, it may be that orders were generated whose order sequence is not optimum. Therefore, you can change the sequence and resource assignment of existing orders in the optimization run.

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Interaction Between SNP and PP/DS

Create,change

Create,change

PP/DS

Today

Create,change

Create,change

SNP

Order4713

Order4714

Order4715

Order4716

Order4717

Production horizon(per product)

Time

Receipts

Reqmts in plantMo Tu We Th

50

Order4712

100 40 210 160 35

? Capacities and material are plannedbased on exact times (to the second)

? Consideration of order sequences

? Optimizer: Can optimize the sequenceof existing orders and operations

? Capacities are planned in time bucketprofiles in an aggregated manner

? Order sequences not considered

? Optimizer: Optimizes lot sizes,determines source of supply

??If you decide to plan using both Supply Network Planning (SNP) and Production Planning and Detailed Scheduling (PP/DS), the production horizon is used to separate the areas of responsibility for these two planning functions:

??Supply Network Planning is used for medium-term to long-term planning across the whole logistics chain (especially if several plants and distribution centers are available). Requirements for a defined bucket (for example, day) are aggregated. In this case, it is irrelevant whether a requirement is in an early shift or late shift since the requirements are only roughly planned, and even the time positions of breaks are not taken into account. Furthermore, you are not only able to perform time aggregated planning in SNP, but also period aggregated planning (if desired). You can define bucket resources to be used for SNP which can represent, for example, the available capacity of a whole warehouse. Since you create separate PPMs for SNP (which are usually copied from PP/DS -PPMs), you can describe production at these bucket resources. Order sequences play no role in the time area of SNP planning.

??PP/DS is used for short-term planning in which orders must be scheduled to the minute and order sequences must be taken into account (sequence planning and optimization).

??As soon as a requirement is within the production horizon, it is no longer planned in the SNP planning run, but rather in the production planning run in PP/DS. Orders can be manually created or changed in PP/DS across the complete time axis, irrespective of the production horizon. During automatic planning (the production planning run) in PP/DS, only orders within the production horizon are created. In SNP, however, orders cannot be created or changed in the production horizon. Orders that are in the production horizon and thus planned by PP/DS are still displayed in SNP as aggregated requirements for the defined bucket.

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100

Today

Production horizon

SNPCreate

100

Today

Production horizon

DeletePP/DS

100

Today

Production horizon

Create againPP/DS

Scheduling accordingto the PPM for SNP

Scheduling accordingto the PPM for PP/DS

Interaction Between SNP and PP/DS (2)

??In this graphic, an order is created in Supply Network Planning using the production process model defined in SNP. Production process models are created (the SNP-PPM can be copied from PP/DS-PPM, which is generated via the R/3-APO interface from the R/3 routing/BOM). Bucket resources (used only in SNP) or mixed resources (which can be used both in PP/DS and SNP-PPM) are planned in Supply Network Planning. Orders are aggregated for each defined bucket.

??As soon as the start date of the order enters the production horizon, the SNP order is no longer planned by SNP. The SNP order must be converted into a PP/DS order so it can be planned by PP/DS. To do this, background conversion is available in the PP/DS menu, which can be used to schedule periodically. The conversion creates the order again in PP/DS using the production process model defined there. Before the conversion, the aggregated requirements are displayed in SNP as planned production. After the conversion in PP/DS, the orders are still displayed as aggregated requirements in SNP.

??The production horizon is defined as a number of days from the current day into the future in which PP/DS is to be used to plan. The production horizon can be defined in Customizing for Supply Chain Planning, in the IMG activity, Display Global Parameters and Default Values. You may also define a production horizon for each product per location in the product master. This definition takes priority over the Customizing definition.

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Requirementsstrategies

Quantity 100Date 05/10

Quantity ?Date ?

Requirements Strategies

Sales order

SDSD

Plannedindep.reqmts

CustomerProduction /Purchasing

? How does SAP process independentrequirements?

??A requirement is the quantity of a material required at a certain time in a plant.

??Independe nt requirements do not refer to the requirements of other materials. Planned independent requirements and sales orders are independent requirements.

??A requirements strategy specifies a possible procedure for material planning.

??Some requirements strategies support make-to-stock production. You could, for example, plan production or purchasing based on a forecast and then cover the sales orders from the stock.

??Some requirements strategies support make-to-order production. In this case, you may not start production or purchasing, for example, until a sales order has been received.

??Some requirements strategies support a combination of make-to-stock and make-to-order production. You could produce the subordinate assembly, for example, based on a forecast. You would not start the final assembly until a sales order is received.

© SAP AG AP010 6-9

? SAP AG 2001

Requirements Strategies

? Make-to-stock production of the finished product by planning atthe finished product level

? Sales order-related final assembly:

? Make-to-stock production of assemblies by planning atassembly level, final assembly in make-to-stock or make-to-order production when sales orders are received.

? Make-to-stock production of assemblies by planning atfinished product level, but final assembly is not triggered untilthe sales order is received. Final assembly in make-to-stockor make-to-order production.

? Make-to-order production only, without planning

??Requirements strategies represent the business procedure for planning production quantities and dates. A wide variety of requirements strategies are available offering a number of different possibilities for planning, ranging from make-to-order production to make-to-stock production. Depending on the strategy you select, you have the following options:

??Make-to-stock production based on sales orders and/or planned independent requirements at finished product level

??Planning specifically for the assembly, if you can plan more easily at component level. Final assembly takes place in make-to-stock or make-to-order production.

??Stocking up of assemblies by planning at finished product level, but final assembly is not triggered until the sales order is received. Final assembly takes place in make-to-stock or make-to-order production.

?? Make-to-order production only, without planning the finished product or the components

??Furthermore, you can combine requirements strategies. This allows you to plan a finished product with a requirements strategy for make-to-stock production as well as plan an important assembly that is also sold as a spare part.

??The planning strategies available for a material can be found in APO Customizing for Master Data (in step Determine Requirements Strategies). You can assign a requirements strategy to a material in the Requirements strategy field. Each requirements strategy contains important control parameters for the consumption of sales orders (or dependent requirements) and planning.

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Overview of the Complete Production PlanningRun Process

Dependent requirements

Order

Sched. agree.del. schedule

Sales orders,Planned ind. reqmts

Purchaserequisition

Convert

External procurementIn-house

production

Product Product planning runplanning run

Sched. agree.del. schedule

Convert

Planned order

Productionorder

Processorder

Plnd order forrepetitive man.

Planning

Execution

??Material requirements planning deals with current and future requirements. The planned requirements quantities trigger planning (in consumption-based planning, for example, planning is triggered when the reorder point is not reached). Requirements elements for material requirements planning are, for example, sales orders, planned independent requirements, dependent requirements.

??If the production planning run discovers shortage quantities, procurement proposals are generated: purchase requisitions and planned orders are internal planning elements which can be changed, rescheduled or deleted at any time.

??In the case of in-house production the system creates planned order for planning production quantities. When planning is complete, planned orders are converted to production orders. Dependent requirements for the planned order are converted to reservations for the production order.

??In external procurement, the system generates a purchase requisition for planning external procurement quantities. When planning is complete, the purchase requisition is converted to an order. If a material exists for a scheduling agreement, scheduling agreement delivery schedules can also be generated directly during the production planning run.

??When planning is complete, in-house production or external procurement must be triggered. For this,

??Planned orders are converted to production orders if you are working with discrete manufacturing (order-based production)

??Planned orders are converted to process orders if you are working with process manufacturing

??Planned orders are used as a basis for production if you are working with repetitive manufacturing (period-based instead of order -based)

??Purchase requisitions are converted to purchase orders

© SAP AG AP010 6-11

? SAP AG 2001

Time Elements in Scheduling

Finishedproduct

Assembly ofa different

plant

Stock transferto a differentplant

Time

Availability date

Start date

Reqmts date

10 3020

End date

GR processing time10

10 20

GI processing time GR processing time

10

GR processing time

GR processing time

Operations

??When the lot size of the planned order has been determined and the PPM has been exploded, the production planning run calculates the dates of the planned orders. The dependent requirement dates of the planned orders are moved to the dates of the assigned operations (PPM). A material order appropriate for the operation is then possible.

??The system assumes material staging according to component assignments in the PPM to the operations in the PPM. The dependent requirement dates of the BOM components are moved to the production start dates of the operations to which they are assigned.

© SAP AG AP010 6-12

? SAP AG 2001

Production Planning Run Overview: SimultaneousMaterial and Capacity Requirements Planning

Time

Resource 3 (finite)

Resource 2 (infinite)

Resource 1 (finite)

Sales order with desireddate and quantity

30

20

10

30

20

Confirmedqty/date

Available

Occupied

1st Loading attempt

Final loading

Today

Resource availability

Raw material Delivery time Delivery time

Possible ALERTS:Resource OverloadSupplier-supplier time violatedSupplier-resource overload

10

Uninterruptible operation, according to PPM

??If a product is not available, the requirement (the sales order or dependent requirement, for example) triggers production directly: If it triggers an order for in-house production, APO creates a planned order for the desired quantity in PP/DS. All of the operations of the PPM are scheduled at the resources of the PPM, and the system takes the capacity restrictions into account (available capacity and orders that may have already been scheduled). If the capacities are already exhausted on the desired date, the system uses simultaneous material and capacity requirements planning to find a date on which the planned order can be created. You use the strategy profile to define how the system is to schedule (search for a slot, infinite planning ...).

??Prerequisite:

??Maintain resources critical to planning as finite resources in the resource master. At these resources, operations of orders are only created if there is enough capacity available for the order quantity on the order date.

??Maintain the strategy profile with which you want to trigger the scheduling of planned orders in planning under Global Settings in Customizing for PP/DS, in the Strategy profile field. The default strategy profile in the delivery system is SAP002 (search for a slot backward).

© SAP AG AP010 6-13

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Detailed Scheduling Planning Board

Diagram areaTable area

Graphical object(operation, order)Message bar

Res.Res. type

Shortdescrip-

tion

Res03

Res02

Res01 P

P

P

Loc 01

Loc 01

Loc 02

Resource chart03/15/1999 03/16/1999

00 02 04 06 08 10 12 14 16 18 20 22 00 02 04 06 0822

OrderNo Products

000001357

000001335

000001294 P

P

P

Order Chart03/15/1999 03/16/1999

00 02 04 06 08 10 12 14 16 18 20 22 00 02 04 06 0822

Product

Product 01

Product histogram03/15/1999 03/16/1999

00 02 04 06 08 10 12 14 16 18 20 22 00 02 04 06 0822

300200100

Order No: 000001294

Different charts

Lines

Chart objects

Columnheading

??Schedules are displayed graphically in the planning board.

??The planning board is used for interactive planning, for example, for interactive processing and dealing with Alerts.

??You can call the planning board directly from the Production Planning/Detailed Scheduling menu or from order processing.

??You can define the layout of the planning board, for example:

??The different charts (such as a resource chart and an order chart):

??The field selection and sorting for the columns in the table section of a chart

??The format of the rows in the table section

??The objects displayed in the diagram section of a chart, for example:

Operations or orders (graphical objects)

Histograms (product stock curves or resource load curves)

Network views of operations and orders that display the time and pegging relationships between operations and orders

??The layout of operations and orders in the diagram section.

© SAP AG AP010 6-14

? SAP AG 2001

Optimization Concept in PP/DS

Objective function

W1* Total lead time

+ W2* Sum of setup times

+ W3* Sum of setup costs

+ W4* Maximum delay costs

+ W5* Sum of delay costs

+ W6* Sum of mode costs

= MINIMUM

? Optimization: Change of production dates/sequences and resourceassignments of existing operations/activities with regard to the following criteria(no creation or deletion of orders):

??Use: Optimization allows you to optimize the production dates/sequences and the resource assignment of existing operations/activities which were generated by the production planning run or manual planning. The optimizer does not create or delete orders. The purpose of optimization is to generate feasible production plans and increase the efficiency of production. Several optimization parameters (such as setup times, due date violations) can be weighted in such a way that the optimized schedule comes as close to the desired results (for example, minimum setup times) as possible. The following parameters can be taken into account in optimization:

??Total lead time (from the start of the first operation to the end of the last operation in a schedule within the optimization horizon). The total lead time makes a statement about the compactness of the orders within the optimization horizon.

??Sum of setup times

??Sum of setup costs

??Maximum delay costs (maximum delay of an order compared to its requirements or due date).

??Sum of delay costs (delay compared to requirements or due dates)

??Sum of mode costs

© SAP AG AP010 6-15

? SAP AG 2001

Non-working timesFixed operationsOperations, that may be rescheduledRelationshipsOptimization range

Transferred resources: B, C, D

Start EndResource A

Resource B

Resource C

Resource D

Resource E

Optimization Window: Time and Resources

Earliest start for optimized schedule

??When you call up optimization you set the optimization horizon (start and end) and the start date for the optimized schedule. The optimization function reschedules orders and operations that are:

??Completely within the optimization horizon (defined by a start and an end date)

??Not fixed

??At resources which were transferred to optimization

If you have selected resources in the planning board, only these selected resources are transferred to the optimizer. If you have not selected any resources in the planning board, the system transfers the resources that you specified in the work area for the planning board and the optimizer. In particular, the system can only reschedule an activity to alternative resources during optimization when these resources are included in the resource selection for optimization.

??The relationships of the fixed orders and operations to the non-fixed orders and operations determine if and by how much these orders and operations can be shifted during optimization. The optimized schedule is, therefore, adjusted to accommodate the fixed orders and operations.

??The system does not change planning outside of the optimization window during planning. Activities outside of the optimization window are fixed during optimization. However, the fixed activities determine by their relationships to the non-fixed activities in the optimization range, whether and how far these activities can be rescheduled during optimiz ation. The optimized schedule is, therefore, adjusted to accommodate the fixed activities.

??Earliest start date for the optimized schedule: Before the optimization, you specify the earliest date on which the optimization function can schedule the activities. You cannot enter an earliest start date that lies in the past.

© SAP AG AP010 6-16

? SAP AG 2001

Optimization: Sum of Setup Times/Setup Costs

Setup times at paint shop

Prod. A B CA 0 10 20B 30 0 15C 30 25 0

AC Setup time

Setup time

Operations of products A to C at paint shop according to schedule (starting situation for optimization): plannedorders for A were created first, then for B and C

Requirements timeC B AA

Optimization result (with light weighting of delays)

Setup times in minutes

A

Product A: white colorProduct B: yellow colorProduct C: blue color

Time

BAC Setup timeASetup

time

A CSetup timeA Setup

time

Optimization result (without weighting of delays)Optimum setup time

B

Setup time B

??Use: You can optimize the schedule for single resources based on the sum of the setup times and sum of the setup costs. The system determines sequence dependent setup times and setup costs from the setup matrix (which can only be maintained for single resources).

??Prerequisites:

??You have modeled the single resources and the operations that are processed at these resources exactly as with the setup time adjustment (see the unit Simultaneous Material and Capacity Requirements Planning).

??You strongly weighted the setup times or the setup costs in the objective function.

??Scope of function: In the objective function, the system interprets the values for the setup times and setup costs from the setup matrix as follows:

??You enter the setup time in a unit of your choice (for example, hours or minutes) in the setup matrix. The system uses the setup duration in seconds in the objective function. If you enter, for example, a setup duration of 10 min utes in the setup matrix, the system uses the value of 600 (seconds) in the objective function.

??You enter the setup costs without unit of measurement in the setup matrix. In the objective function, the system directly uses the value entered in the setup matrix. If you enter, for example, the value 10 for the setup costs in the setup matrix, the system uses the value of 10 to calculate in the objective function.

??Important: In the objective function, the setup costs with a value of 10 correspond to a setup duration of 10 seconds. You must consider this relationship between setup times and setup costs when defining the objective function, that is, when specifying the weighting for the setup times and the setup costs.

© SAP AG AP010 6-17

? SAP AG 2001

Conversion to Fixed Procurement Elements

Productionorder

Plannedorder

Plannedorders

Productionorders

Individual conversionIndividual conversion

Collective conversionCollective conversion

OrderPurchaserequisition

Purchaserequisitions Orders

??You can trigger the conversion of planned orders and purchase requisitions to production orders or orders directly in APO. You set the conversion indicator in APO for the orders you want to convert. The orders are transferred to the OLTP system and converted automatically. The converted orders are sent back to the APO System with a different ATP category (purchase requisition to purchase order). If a planned order is converted to a production order, the dependent requirements of the components are converted to reservations.

??You can convert planned orders and purchase requistions in one of the following two ways:

??Individually in interactive planning: In the product view and the product planning table, you can select orders to be converted and then choose Set conversion indicator. When you save the planning results, the orders to be converted are transferred to the R/3 System, where the conversion will be automatically triggered. The converted orders are sent back to the APO System with a new ATP category.

??Using mass conversion and selection criter ia (Choose Production Planning -> Manufacturing Execution -> Conversion of Orders/Purchase Requisitions): You can set the conversion indicators for a large number of orders or for several products. You can restrict the selection of orders to be converted by entering the product, location, production planner and the offset for the opening period. The opening period, which is defined in the product master on the PP/DS tab, controls which orders are to be converted. The opening period is a number of workdays starting from the current date. The APO System only sets the conversion indicators for orders whose order start dates are within this period. The opening period is used both for in-house production orders and external procurement orders.

??Prerequisites: On the PP/DS tab in the product master, you have maintained an opening period for each product at the location level.

© SAP AG AP010 6-18

? SAP AG 2001

Mass Conversion - Time-Based

Order headerOrder header

Operations

Material components

Production resource/tool

Costs PlanKPlndActual

2050

100

Orders

Production orders/process orders

Today x days later

Offset time

Time

Planned orders andpurchase requisitions

PlanningPlanned order

Purchase requisition

Openingperiod

Productionfinish

Productionstart

Creationdate

In-houseproduction

External procurement

??APO orders contain three dates: production start, production finish, creation date. The creation date is the date on which a planned order is to be converted to a production order or a purchase requisition to an order. This date is based on the opening period defined in the R3 material master (SchedMargin key field). The opening period from the SchedMargin key of the R/3 material master is transferred to the APO product master in the R/3 APO interface (Opening field in the Horizons group box).

??As soon as the creation date of a planned order is passed on to a time horizon selected in mass conversion, it can be converted in mass conversion. The time interval (offset time) entered in mass conversion is always valid as of today's date. Planned orders whose creation dates are in the past are automatically selected too.

??Planned orders are usually converted to production orders (in-house production), purchase requisitions to purchase orders (external procurement).

??In in-house production, the order type in R/3 determines whether it is a production order or a process order. The order type is taken (in the sequence of highest priority) from the production scheduling profile in the R/3 material master, the MRP group in the R/3 material master, and the plant parameters in R/3-Customizing. The R/3 System decides whether a production order or a process order is to be generated for the product.

??When the pla nned order is converted to a production order or process order, the planned order is deleted. The related dependent requirements (material components) and any capacity requirements are redirected to the newly created production order. The dependent requirements become reservations.

© SAP AG AP010 6-19

? SAP AG 2001

Production Planning / Detailed Scheduling (PP/DS):Unit Summary

You are now able to

? Describe how sales orders consume planning in make-to-stock and make-to-order production

? Use simultaneous material and capacity requirementsplanning at operation level

? Use the tools for production planning and productionscheduling

? Describe schedule optimization in PP/DS

? Transfer the planning results to the execution system

© SAP AG AP010 6-21

Exercises

Unit: Production Planning and Detailed Scheduling

At the conclusion of these exercises, you will be able to:

?? Explain the production planning run method in PP/DS (simultaneous material requirements planning and capacity planning)

In Demand Planning, a demand planning forecast was generated and transferred to the distribution centers in Milan and Rotterdam as planned independent requirements. After SNP has transferred the requirements via the stock transfer to the production plant, the production quantities and capacities must be planned in the production plant. In addition, customers in Germany in your company are not supplied via the distribution cente rs. Rather, they receive supplies directly via the plant 1000 in Hamburg. Therefore, planned independent requirements have also been generated in Demand Planning directly for the plant 1000 (without a detour via the distribution centers). These planned independent requirements preplan the demand expected for the customers in Germany. Your task is to plan material availability in plant 1000 in Hamburg. Start a production planning run to plan material and capacity simultaneously in the plant.

1-1 In the Product View in APO, look at the planned independent requirements for pump T-F2## at location 1000 (production plant Hamburg) .

1-1-1 Why have no planned orders been created, in the near future, for the planned independent requirements? _____________________________________________________ To return to the display of the stock/requirements situation, select the Elements tab.

© SAP AG AP010 6-22

1-2 Execute a production planning run to schedule the production of the pumps. In this example, planning should not be triggered from the product view; rather, the production planning run should be used.

1-2-1 Exit the product view and follow the menu path for the production planning run. In the production planning run, in plant 1000, you plan all products for which you have planned the production planner. In the production planning menu, select the following variant: SAP_MRP_001 . After making this selection, choose Selection criteria . Now select the following values:

Field Values

Product

Location 1000

Production planner 0##

Planning file entry created X

Choose Execute.

1-3 In the Product View in APO, look at the planning result for the APO product T -F2## at location 1000 (production plant Hamburg).

1-3-1 Look at the situations of the planned order for product T -F2## and check the requirements/receipt situation for all components. Were all requirements planned in planning? _____________________________________________________

1-3-2 Now check the planned order details: Look at the component list of the latest planned order within the production horizon: Double -click on the latest planned order within the production horizon to go to the planned order. After double -clicking, you can see the detailed data (header data) of the planned order on the right, and the complete structure of the planned order on the left. On the left you can recognize the receipts, components (requirements) and operations of the planned order. When are the start and end dates of the planned order for the final assembly of pump T-F2##? _____________________________________________________

© SAP AG AP010 6-23

How many operations have been scheduled in the planned order on the various resources? _____________________________________________________ Which assemblies (and also dependent requirements) are contained in the planned order for the pump T-F2##? _____________________________________________________ Have the components T -B1## (casing), T -B22## (fly wheel), T-B3## (hollow shaft) and T-B4## (electronic turbo-drive) also been planned? To find this out, double -click on the corresponding product number in the component list of the planned order and look at the requirements/stock situation for the corresponding assembly on the right of the screen. Are there any alerts for the components of the planned order? _____________________________________________________

© SAP AG AP010 6-25

Optional exercise (not part of the standard course – can be used by the course participants after the course)

Unit: Production Planning and Detailed Scheduling(Machine Scheduler’s Tools)


?? Visualize and process orders in the detailed scheduling planning board

After you have executed the planning run for your plant 1000 in Hamburg, you must then reschedule the sequence of the existing orders.

1-4 Until now, we have only created requirements and orders for pump T-F2## (white pump). Now, create some more planned independent requirements for pump T-F4## in plant 1000. To demonstrate that planned independent requirements can be created not only using APO Demand Planning, but also using R/3 Program Planning, create the planned independent requirements manually in R/3. Note : Creation of planned independent requirements in R/3 is useful if you are performing demand planning in R/3, or are not performing demand planning and wish to maintain the planned independent requirements manually.

1-4-1 Enter the independent requirements for material T-F4## in plant 1000 in the R/3 program planning. In the initial screen of the transaction, enter T (day format) in the planning period field, to select day schedule lines as the period schedule line. In the planning table, select the first row of the table and choose the delivery schedule tab. Enter the following independent requirements for pump T-F4## in plant 1000:

Friday in a week

Friday in two weeks

Friday in three weeks

Friday in four weeks

5 5 5 5

Save your entries.

© SAP AG AP010 6-26

1-5 Check the sequence of the planned orders for both product pump T-F2## (white pump) and T-F4## (blue pump). To do this, use the detailed scheduling planning board.

1-5-1 Call up the variable view of the Detailed Scheduling Planning Board. Choose the “Pump ##” overall profile and confirm using Enter. You see that the work area “Pump ##” was selected automatically when you selected the overall profile “Pump ##”. This includes all resources for the final assembly of the pumps. Enter the detailed scheduling planning board using the selection criteria specified above and then navigate in the planning board.

1-5-2 Look for the first orders for products T-F2## (white pump), and T-F4## (blue pump) by selecting the respective product numbers one after the other in the Product chart and then right-click to select "begin with first graphical object". Look in the Resources chart to see which resources the pumps occupy. To find out which capacity loads belong to which order in the resources chart, select the first planned order for the product T-F2## and then right-click to select “Mark objects for the same order”. All capacity requirements belonging to the order are then shown in color.

1-5-3 In the Detailed Scheduling Planning Board, you can now manually reschedule orders/operations using Drag & Drop, or you can start the Optimizer for automatic sequence planning. However, only observe the planning result here, and then exit the Detailed Scheduling Planning Board without saving.

© SAP AG AP010 6-27

Solutions

Unit: Production Planning and Detailed Scheduling

1-1 APO menu path: Production Planning ? Interactive Production Planning ? Product View

1-1-1 Why have no planned orders been created, in the near future, for the planned independent requirements? For product T-F2##, a production horizon of a certain number of days has been maintained in the product master, on the SNP2 tab. Requirements outside this production horizon are covered by the SNP planning run. Requirements within the production horizon are covered by the PP/DS planning run. As only an SNP planning run was executed in the last exercise, but not a PP/DS planning run, no planned orders are available for any requirements within the production horizon.

1-2 APO menu path: Production Planning ? Automated Production Planning and Optimization ? Production Planning Run

1-3 APO menu path: Production Planning ? Interactive Production Planning ? Product View

1-3-1 Look at the situations of the planned order for product T -F2## and check the requirements/receipt situation for all components. Were all requirements planned in planning? After the production planning run, all the planned independent requirements were planned.

1-3-2 When are the start and end dates of the planned order for the final assembly of pump T-F2##? Take the dates from the planning order header. How many operations have been scheduled in the planned order on the various resources? In total, the six different PPM operations have been scheduled in the planned order. Which assemblies (and also dependent requirements) are contained in the planned order for the pump T-F2##? The components T-B1##, T-B22##, T-B3## and T-B4## are contained in the planned order for the pump.

© SAP AG AP010 6-28

Are the components T-B1## (casing), T-B22## (fly wheel), T-B3## (hollow shaft) and T-B4## (electronic turbo-drive) also planned automatically and immediately? Are there any alerts for the components of the planned order? Only the dependent requirements of the hollow shaft are planned immediately; the other dependent requirements were not planned. However, these are partially covered by storage location stock . Solutions

© SAP AG AP010 6-29

Optional exercise (not part of the standard course – can be used by the course participants after the course)

Unit: Production Planning and Detailed Scheduling (Machine Scheduler’s Tools)

1-4

1-4-1 R/3 menu path: Logistics ? Production Planning ? Program Planning ? Planned Independent Requirement ? Create

1-5

1-5-1 APO menu path: Production Planning ? Interactive Production Planning ? Detailed Scheduling Planning Board

1-5-2

1-5-3

© SAP AG AP010 7-1

? SAP AG 2001

Contents:

Transportation Planning & Vehicle Scheduling(TP/VS)

? Route optimization

? Transportation consolidation

? Carrier selection

? Shipment tendering

© SAP AG AP010 7-2

? SAP AG 2001

Unit Objectives


? Describe the tasks of Transportation Planning &Vehicle Scheduling, and how it is applied in APO

? State the differences between the Transport LoadBuilder, and Transportation Planning & VehicleScheduling.

© SAP AG AP010 7-3

? SAP AG 2001


444

333


77

Course Overview

555

666

77

222

888

999


Demand Planning




Conclusion

© SAP AG AP010 7-4

? SAP AG 2001

Business Scenario

? The Precision Pump Company is usingTransportation Planning & Vehicle Scheduling tomake optimum usage of available capacities intrucks, trains, ships, and aircraft . Their aim is toplan more efficiently and reduce costs.

? During optimization, both optimum routes, andoptimum vehicles will be identified (using R/3freight costs, for example).

??The Precision Pump Company is using Transportation Planning to make optimum usage of available capacities in trucks, trains, ships, and aircraft . Their aim is to perform planning more efficiently and reduce costs.

??They are using Vehicle Scheduling to analyze and modify the plan that was generated during Transportation Planning. For example using carrier selection manually to fix planning results, and transfer them to the OLTP system for transportation execution (LES).

© SAP AG AP010 7-5

? SAP AG 2001

TP/VS, LES, and BW provide an integrated solution fortransportation management within the Supply Chain

Transportation Management

LESBW

APO TP/VS (Planning)

(Execution)(Monitoring)

? Is integrated with the APOcomponents DP, SNP,PP/DS, and ATP

? Evaluates the planning inBW

? Plans for both short, andlong term horizons

??The TP/VS component has the following functions:

??Transportation planning and transportation consolidation

??Vehicle Scheduling and route determination in a dynamic environment

??Transportation mode and carrier selection

??Multi-pick up and multi-drop functions

??Management by exception

??The APO system includes the tactical and operational planning area from the SAP Transport Management solution, which is complemented for transportation execution by the SAP component from Logistics Execution Systems (LES).

© SAP AG AP010 7-6

? SAP AG 2001

Transport Load Transport Load BuilderBuilder

Supply NetworkSupply NetworkPlanningPlanning

Demand PlanningDemand Planning

PP/DSPP/DS

TP/VSTP/VS

Stock transfers

ForecastForecast

Deployment

Plannedorders

Planneddeliveries

Plannedshipments

Unconstrained

Aggregated planning

ConstrainedMid-term planning

ConstrainedDetailed planning

Constrained

Route planning andtransportation consolidation

APO Planning Process

??Supply Network Planning is used for long-term and mid-term planning. A big advantage of this component is the sourcing which determines where and how a product will be procured. Sourcing is optimized by functions such as the Transport Load Builder (TLB). Bucket capacities are used in Supply Network Planning to plan products. These bucket capacities show the most detailed level of daily planning.

??Vehicle Scheduling (VS) is a short-term planning component. You can define planning horizons for both the Supply Network Planning component and the VS component here. These horizons are all independent of one another and have to be planned as such.

??In Vehicle Scheduling, resources and transportation processes are maintained in detail, so that planning will be performed as precisely as possible. When orders from Supply Network Planning become VS orders, the following happens:

??the orders are received in a specific sequence

??the exact transportation time is specified

??information and processes that were still outstanding are added (data and processes that are not necessary for Supply Network Planning, but are for Vehicle Scheduling such as loading and delivery activities)

© SAP AG AP010 7-7

? SAP AG 2001

Created transportation lane

Generated transportation lane

Inbound

Outbound

ReplenishmentTransportation

zones

TP/VS Supply Chain Modeling

??Customers or suppliers can be grouped into transportation zones to reduce the complexity of TP/VS problems.

??The unbroken line is modeled and the broken lines are generated by the optimizer.

??If a transportation zone is loaded with customers from the R/3, an associated hierarchy is generated automatically.

© SAP AG AP010 7-8

? SAP AG 2001

Transportation planning & Vehicle Scheduling(TP/VS)

Sales orders,stock transfers,

forecasts

Simultaneous routeplanning and transportationconsolidation

Selection oftransportation provider

Vehicleresources

TLB ordersExpress orders

Objective:

Deliveries andtransportation orders in R/3

Optimizer

??Optimization in TP/VS is for optimizing transportation schedules with the assignment of vehicle resources to orders. It takes into account the following:

??Travel from and back to the depot

??Loading and unloading time

??Order consolidation

??Reduce transportation time costs

??Reduce distance costs

??Costs for being too early/delayed

??Costs for non-delivery

??Transportation fixed costs

??Optimization can be simulated or used in the active planning version 000.

??You can use transportation allocation to

??define the maximum transportation capacity of a carrier per day and per transportation lane

??fix a specific minimum service acceptance to define the minimum of shipments that must be made. Transportation allocations are maintained as time-dependent

??The capacity utilization (in percentage terms) of a carrier, plays an important role, and should be computable (also refer to the Business Share Strategy used in carrier assignment).

??It is a particularly good idea to use carrier transportation capacities if you are working with priorities for various carriers.

© SAP AG AP010 7-9

? SAP AG 2001

The Vehicle Scheduling Procedure

Select carrier

Shipment tenderingPublication of

deliveries

Create/transferdeliveries

Configuration

Backorder processing

Master data Modeling

Optimization(Route planning and

transportation consolidation)

Create/transfershipments

??You use interactive planning in Vehicle Scheduling to:

??perform transportation planning manually or automatically

??display, change, confirm, or reject optimization results

??execute carrier selection manually

??fix planning results and transfer them to the OLTP system for transportation execution

© SAP AG AP010 7-10

? SAP AG 2001

Createdeliveries

Publish

Release forexecution

Accept / Refuse

Business scenario:Internet tendering




TP/VS Tendering

XML

EDI

HTML Service agentService agentTransportation plannerTransportation planner

© SAP AG AP010 7-11

? SAP AG 2001


Unit Summary

? Describe the tasks of Transportation Planning &Vehicle Scheduling, and how it is applied in APO

? State the differences between the Transport LoadBuilder, and Transportation Planning & VehicleScheduling

© SAP AG AP010 8-1

? SAP AG 2001

Contents:

Global Available-to-Promise (Global ATP)

? Global ATP and Integration with OLTP

? Integration with PP/DS

? Rules-based ATP

? Product Allocations

© SAP AG AP010 8-2

? SAP AG 2001

Unit Objectives


? Describe how Global Available-to-Promise(ATP) integrates with OLTP andAPO applications

? Define the features and functionalityof Global Available-to-Promise

? Identify benefits of using GlobalAvailable-to-Promise

© SAP AG AP010 8-3

? SAP AG 2001


444


88

Course Overview

555

666

88777

999

333 Modelling and Evaluation in APO

Demand Planning





Conclusion

© SAP AG AP010 8-4

? SAP AG 2001

Business Scenario

? Precision Pump company intends to use rules-based ATP to be able to carry out a multi-plantsearch for products requested by its customers. Ifthe pumps are not available, the feasible deliverydate can be determined, taking account ofresource availability.

? SAP AG

© SAP AG AP010 8-5

? SAP AG 2001

GlobalATP

Historical dataHistorical data

Demand Planning

Salesorders

Shop floorcontrol

Inventorymanagement



Deployment

Production Planning and

DetailedScheduling

AP0 Application Architecture and Global Available-to-Promise (ATP)

Transportation PlanningTransportation

processing

LIS, CO/PAHR, FI

Keyperformanceindicators(KPIs)

R/3 APO BW

??In the R/3 APO interface you can define that the ATP check of products (ATP check, ATP = Available-to-Promise) should not be carried out in R/3 but in APO, as soon as a sales order is created.

??Sales orders created in the OLTP system (for example, R/3 System) automatically trigger the availability check in APO in this case. Depending on the system settings, a check can be carried out against inventory, production plans and distribution plans.

??Planned orders that are created via ATP integration with PP/DS can be sent back directly to the OLTP systems.

© SAP AG AP010 8-6

? SAP AG 2001

Global Availability Check in APO: Benefits

? Rules-based availability check (multi-step availability check):check of multiple locations and products

? Better integration between sales and distribution andproduction: triggering of production when there is noavailability (integration PP/DS)

? Multilevel component and capacity check (real-time operation)

? Check against aggregated, memory-resident data

??Rules-based ATP (multi-step availability check): When there is no availability, you can configure in APO that the system should carry out the availability check for the product in another location or else for an alternative product.

??Integration between sales and distribution and production: You can also define that the sales order triggers production directly if a product is not available. If it triggers an order for in-house production, APO creates a planned order for the desired quantity in PP/DS (Production Planning & Detailed Scheduling).

??In addition, component availability can be checked (multi-level components and capacity check).

??Check against aggregated data: Planned orders and production orders are aggregrated and represented in a time series, which can be used to evaluate the incoming requests from the sales orders. This means that better system performance is then available.

© SAP AG AP010 8-7

? SAP AG 2001

Salesorders

R/3

? Global ATP: multi-site, real-time

? Rules-based, multi-level ATP

? Alternative locations

? Alternative products

? Alternative PPMs

? Integrated with Production Planning

? Checks against actual production plan

? Consideration of capacity constraints

? Integration of legacy systems

Articlestructure

ATP request

40 pieces

Confirmation

Global ATP

Customer

APO

??Global ATP is embedded in Supply Chain Management (SCM) processes for any kind of order processing.

??Availability checks are triggered as events in the OLTP system - either R/3 or legacy systems - and an ATP request for product availability is sent over to APO.

??An Available-To-Promise (ATP) check is an online search to verify the company's ability to provide the requested product, in the requested quantity, and on the date requested by the customer.

??In many OLTP systems, ATP functionality is limited or not possible at all. In older versions of R/3, an ATP check searched local inventories only for available products and assumed infinite capacity when a product had to be produced. For this reason, ATP checks are carried out in APO on the basis of time series, either in real-time or in simulation mode.

??When it comes to production, ATP makes use of PP/DS (Production Planning and Detailed Scheduling) functionality to check against the actual order network including all constraints.

??Applying rules-based ATP is the basis for checks of alternative products in alternative locations as well as for production.

© SAP AG AP010 8-8

? SAP AG 2001

Receipts

Issues

Time

Planned Planned orderorderStockStock

PurchasePurchaserequisitionrequisition

ProductionProductionorderorder

Further sales-Further sales- relatedrelated

requirementsrequirementsReservationReservation

Issues & Receipts

??In accordance with ATP settings in APO, you can take into account various stock, requirements and receipts in the availability check. You can define which requirements and receipts to use as a basis for a sales order confirmation that you want to give the customer.

??The scope of check is configured in APO Customizing.

© SAP AG AP010 8-9

? SAP AG 2001

Aggregation of Time Series

? Aggregate each receipt (issue) per:

? Category

? Time unit

? High performance because

? Cumulative quantities are checked,not individual goods movements

??The data sent from the OLTP system is aggregated and represented in a time series consisting of the corresponding ATP objects that are then used to evaluate the incoming ATP requests.

??The time series display (see picture above) shows the receipt elements above the line. The issue elements are below the line.

??If the stock is zero or negative, a new order can only be confirmed for a later date.

??To differentiate between the various levels of probability with which a specific product will be in stock in the future, there is a time series for each type of ATP category.

??Examples of ATP categories: firm planned order, consignment stock, released production order.

??To improve your system performance, ATP gives you the option to aggregate orders by reorganizing time series'. All receipts and issues within one period are cumulated. The ATP check checks against these aggregated quantities.

??ATP performance is reduced if you process incoming orders in individual checks.

© SAP AG AP010 8-10

? SAP AG 2001

Alternative location(s)Alter

native

produ

ct(s)

End item ofsales order

PP

M e

xplo

sion

Problem:Insufficient number of pieces in stock

Possible solution:Step 1: Alternative productStep 2: Procurement from another locationStep 3: Production (PPM explosion)

Rules-based ATP: Example

??Rules-based availability checking is an iterative process. The rules stored in the system determine the next checking step in each case.

??Possible next steps are as follows:

??Substitution (alternative product)

??Sourcing (alternative location)

??Capable-To-Promise (triggering production = creating an order)

??All of these span the three-dimensional space shown in the picture.

??The search stops when an acceptable result is provided by the check (if any number of substitution steps is permitted).

??In the rule strategy settings, however, only one substitution can be selected. In this case the system completes the rule evaluation. Without customer -specific coding (= customer exit) the system chooses the first result that covers the requirement completely. By activating the customer exit you can decide which selection is appropriate and if a dialog should be displayed. Only one result is permitted.

??The rule strategy forms the actual rule-base for a specific check. In the simplest case, this search strategy defines the sequence in which the system reads the individual rules.

??Each access of this sequence is performed using a combination of characteristics. When an order is to be checked, the characteristics of the order are passed over to APO from the OLTP system.

??You can thereby define, for example, that sales orders for different sales organizations, sold-to parties, and so on, are checked using different ATP rules. Depending on these values, the corresponding rule is evaluated.

© SAP AG AP010 8-11

? SAP AG 2001

Sales order

Sales orderSales order

R/3 APO

Sales (SD)Sales (SD) ATP checkATP checkATP request

Production Planning/Detailed SchedulingProduction Planning/Detailed Scheduling

For non-availability Produce

Planned order

MRP

Confirmation

Update time series

Save sales order

Planned orderPlanned order

Availability Check (ATP Check) in Sales Orders

??In the R/3-APO interface, you can specify in the integration model that the availability check (ATP check) in the sales order is not to be performed in R/3, but rather in APO (Availability check indicator). If you create a sales order in the R/3 System, the system first checks whether there is enough stock available for this product. It can also check whether receipts (such as production orders or planned orders) are scheduled before the desired date.

??For non-availability, you can specify in APO that the system is to perform an availability check for the product in a different location or for an alternative product. Furthermore, if a product is not available, you can define that the sales order can trigger production directly. In this case, it triggers an order for in-house production and APO creates a planned order for the desired quantity in PP/DS. All of the operations of the PPM are scheduled at the resources of the PPM, and the system takes the capacity restrictions into account (available capacity and orders that may have already been scheduled). In addition, the availability of the components can be checked (Automatic planning indicator in the product master of the components). If the capacities are already exhausted on the desired date, the system uses simultaneous material and capacity requirements planning to find a date on which the planned order can be created.

??The availability date of the newly created planned order (finish date) is passed back to the R/3 sales order and copied as the internal confirmation date. Delivery scheduling is used to determine the date in the sales order on which the customer can receive the product. The sales employee can find this delivery date in the R/3 sales order. When you confirm this proposed date in the sales order and save it, the APO planned order, which was only simulated, is transferred back to R/3 and is visible there.

© SAP AG AP010 8-12

? SAP AG 2001

Time

Resource 3 (finite)Resource 3 (finite)



Sales order

Desired dateand quantity

30

20

1010

30

20

Confirmedqty/date

Available

Occupied

1st Loading attempt

Final loading

Today

Integration of Availability Check and Sales Order -Production

Resource availability

??If a product is not available, the sales order can trigger production directly: If it triggers an order for in-house production, APO creates a planned order for the desired quantity in PP/DS. All of the operations of the PPM are scheduled at the resources of the PPM, and the system takes the capacity restrictions into account (available capacity and orders that may have already been scheduled). If the capacities are already exhausted on the desired date, the system uses simultaneous material and capacity requirements planning to find a date on which the planned order can be created. You use the strategy profile to define how the system is to schedule (search for a slot, infinite planning ...).

??Prerequisite:

??In the "rules-based availability check", define that production is to be triggered directly for non-availability (this function can be used in connection with all requirements strategies in planning).

??Maintain the strategy profile with which you want to trigger the scheduling of planned orders from the ATP integration and maintain them under Global Settings in Customizing for PP/DS, in the Strategy profile for ATP integration field. The default strategy profile in the delivery system is SAP001 (search for a slot backward).

??You define in APO how the availability of a sales order is checked in APO (for example, checking against stock, checking against forecasting, checking against allocation, or checking using rules -based ATP (also checking against alternative products/locations or triggering production from the sales order). Here, depending on the R/3 requirements class and the business event (for example, A = sales order, AE = make-to-order sales order, B = delivery), you can define which check if any should be performed (check against stock, against forecasting, against allocation or rules-based ATP). If you use rules -based ATP, the corresponding rules are selected according to material, sales organization, sold-to party, plant, etc (condition technique).

© SAP AG AP010 8-13

? SAP AG 2001

ReceiptReceiptDemandDemand Jan Feb Mar Apr

? Managing demand against constrained supply

Product Allocation

??Product allocation functionality allows you to manage the supply of scarce products to customers, so that each customer receives an allocated amount.

??Product allocations are applied to a product allocation object. The product allocation object is the reason for allocating quantities. It could be any one of the following:

??A product (personal computer) or a product group

??A component (processor)

??A season (summer, winter)

??A production line

??The reason for product allocations may vary in different phases of the product life cycle.

© SAP AG AP010 8-14

? SAP AG 2001

June July Aug. Sept.

Checking horizon/Replenishment lead time = 2 periods

Time

June TimeJuly Aug. Sept.Stock

Planned orderSales order

Sales order confirmations -Before

Sales order confirmations - bypriority

Backorder Processing

??Backorder processing is one of the new availability check tools that enables you to analyze and edit backorders and to overwrite confirmed quantities as the result of the previous ATP check. You can redistribute the confirmed quantities of one or more products via selected customer requirements.

??Backorder processing can be executed

??In interactive mode

??In batch mode (including simulation)

??As a combination of both

??The orders to be processed are determined via a filter that is to be defined. This filter definition can be configured by the user or you can use the standard filters provided by SAP, which filter according to locations in which the planning situation has changed (netchange filter). They must be taken into account again within backorder processing.

??After the orders have been selected once via the filter, they can be sorted via specific configurable criteria.

??The orders whose delivery date now lies in the past can be scheduled in the future, if desired.

© SAP AG AP010 8-15

? SAP AG 2001

You are now able to

Global Available-to-Promise: Unit Summary

? Describe how Global Available-to-Promise (ATP)integrates with OLTP and APO applications

? Define the features and functionalityof Global Available-to-Promise

? Perform a simulation of rules-basedusing Global Available-to-Promise

? Identify benefits of using GlobalAvailable-to-Promise

© SAP AG AP010 8-17

Exercises

Unit: Global Available-to -Promise (Global ATP)


?? Create a sales order in R/3

?? Run the ATP check

?? Understand why you got this specific ATP check result

The Precision Pump Company receives a customer inquiry for the product T-F2##. The customer Jashanmal Trading, Dubai wants a confirmation regarding when Precision Pump Company is able to deliver the product.

1-1 Create a sales order in R/3 and perform the ATP check.


Order type OR

Sales organization

Distribution channel

Division

2400

10

00

In the sales order screen you enter the following data:


Sold-to party 2402

Purch. order no. Group ##

Material T-F2##

Order quantity 5

You get a dialog box with the ATP check result.

© SAP AG AP010 8-18

How many units of the products can be delivered?

___________________________________________

___________________________________________

Save the order. The order is transferred directly to APO after saving in R/3.

In the APO system, check the planning situation for the product T-F2## (pump) in the locations 2400 (Milan), 2500 (Rotterdam) and 2300 (Barcelona).



Product T-F2##

Location 2400

Then check the planning situation in locations 2500 and 2300.

© SAP AG AP010 8-19

Solutions

Unit: Global Available-to-Promise (Global ATP)

1-1 Create a sales order in R/3 and perform the ATP check.

Logistics ? Sales and Distribution ? Sales? Order ? Create


Order type OR

Sales organization

Distribution channel

Division

2400

10

00

Press Enter

In the sales order screen you enter the following data:


Sold-to party 2402

Purch. order no. Group ##

Material T-F2##

Order quantity 5

You get a dialog box with the ATP check result.

How many units of the products can be delivered?

___________________________________________

___________________________________________

Save the order. The order is transferred directly to APO after saving in R/3.

© SAP AG AP010 8-20

In the APO system, check the planning situation for the product T-F2## (pump) in the locations 2400 (Milan), 2500 (Rotterdam) and 2300 (Barcelona).

Production Planning ? Interactive Production Planning ? Product View



Product T-F2##

Location 2400

Then check the planning situation in the locations 2500 and 2300.

© SAP AG AP010 9-1

? SAP AG 2001

APO SCM Implementation

? ASAP SCM Implementation Philosophy

? ASAP SCM Methodology

? Objectives

? Deliverables

? Tools

? ASAP for APO

Contents:

© SAP AG AP010 9-2

? SAP AG 2001

Unit Objectives


? Explain the philosophy behind the ASAP SCMimplementation methodology,

? List the various phases of the ASAP SCMmethodology,

? Describe the objectives, deliverables, and the useof tools of each phase of the ASAP SCMmethodology.

© SAP AG AP010 9-3

? SAP AG 2001


444


99

Course Overview

555

666

99

777

888

101010


Demand Planning





333

Conclusion

APO SCM Implementation

© SAP AG AP010 9-4

? SAP AG 2001

The SAP Supply Chain Implementation Philosophy:

A supply-chain diagnosticsapproach that will enable SAP toevaluate a customer's supplychain, identify significant issues,estimate benefits that APO coulddeliver, and develop a tailoredimplementation plan that enablescustomers to realize these benefitsin a short period of time

© SAP AG AP010 9-5

? SAP AG 2001

The Supply Chain Implementation Tool Kit

Projectplans

APOprocess flows

Supply Chaincase studies

APO activitymatrix

Analyticaltools

R/3 ValueanalysisQuestionnaires

& surveys

? Built-in tools, templates &techniques

? Models

? Templates

? Questionnaires

? “How-to’s”

? Case studiesI DT a s k N a m e

1 S a m p l eSchedule

2 P r o j e c tP r e p a r a t i o n

3 Bus inessB luep r in t

4 Simula t ion

5 Validation

6 F i n a lP r e p a r a t i o n

7 G oLive&S u p p o r t

8

9

1 0

N o v D e c J a n F e b M a rA p r M a y J u nN o v e m b e rD e c e m b e rJ a n u a r yF e b r u a r yM a r c hA p r i lM a y J u n e

I D Task Name1

SampleSchedule2

ProjectPreparation3

BusinessBlueprint

4 Simulation

5Validation

6FinalPreparation

7GoLive& Support

89

1 0

N o v Dec J a n Feb Mar A p r M a y J u nNovemberD e c e m b e rJanuary FebruaryMarch April May June

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? SAP AG 2001

Businessblueprint

Projectpreparation

Finalpreparation

Realization Go live andsupport

D3

D2

ACME

Taiwan

S e m i c o n d u c t o rDistributor

S1

P2

P 1

P4P 3

M4 D1

CustomersACME

A C M EL a p t o p

Production

(San Jose)

A C M ELaptop

Production

(San Jose)

A C M EL a p t o p

Distribution(San Jose)

P4

SemiconductorManufacturer

S1D2

C u s t o m e r ’ s

Customer

LaptopDistributor LaptopRetailer

S1

P 2

D 1S1 D1

P 1

P2

Customers

Supplier’s

S u p p l i e r

P1

Non-R/3 R/3

SAP BusinessInformationWarehouse

SAP AdvancedPlanner &Optimizer

R/3R/3 Non R/3

PeopleLearning

Opportunities

ProcessesInnovation

Strategy

ProductsIndustry Practices

Implementat ions

ASAP SCM Methodology Phases

© SAP AG AP010 9-7

? SAP AG 2001

Phase 1: Project Preparation - Objectives

? Organize the ASAP SCM Implementation Project

? Set customer and SAP team expectations

? Establish a technical infrastructure

© SAP AG AP010 9-8

? SAP AG 2001

Phase 2: Business Blueprint - Objectives

? Identify specific ways of improving the supply chainmanagement and strategies of the customer

? Benchmark the Supply Chain

? Align SAP and 3rd party solutions to realize theseopportunities

? Develop business solution design and implementationplans

? APO process blueprint

© SAP AG AP010 9-9

? SAP AG 2001

Phase 2: Business Blueprint - Tools

? APO for ASAP

? Strategic blueprint

? Case studies

? Question & Answer database (QAdb)

? Process description

? Questionnaires

? Roadmap / project plan

© SAP AG AP010 9-10

? SAP AG 2001

Phase 3: Realization - Objectives

? Develop plans for model specification

? Configure and validate baseline and final models

? Perform and resolve functional gap analysis

? Conduct configuration workshops

? Develop conversion and interface programs

? Develop reports and enhancements

? Final integration testing

? Prepare end user documentation and training material

© SAP AG AP010 9-11

? SAP AG 2001

Phase 4: Final Preparation - Objectives

? Prepare for "live" solution implementation

? Anticipate and plan for contingencies

© SAP AG AP010 9-12

? SAP AG 2001

Phase 5: Go Live and Support - Objectives

? Identify and resolve post go-live issues

? Validate "live" SCM solution results

? Perform a project review

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? SAP AG 2001


APO Implementation: Unit Summary (2)

? Explain the philosophy behindthe ASAP SCM implementation methodology

? List the various phases of theASAP SCM methodology

? Describe the objectives, deliverables, and use oftools of each phase of the ASAP SCM methodology

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Conclusion

444

333


1010

Course Overview

555

666

1010

777

888

999


Demand Planning


Production Planning /Detailed Scheduling

Deployment



111

Conclusion

© SAP AG AP010 10-2

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Course Goals

At the conclusion of this course you will able to

? List the fundamental planning scenarios of theAdvanced Planner and Optimizer (APO)

? Explain the functions and interplay of theindividual APO components

? Describe the integration with the execution systemand information systems

? SAP AG

© SAP AG AP010 10-3

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Planning HorizonDemand Planning (DP)




Deployment

Transportation Planning & Vehicle Scheduling (TP/VS)

APO Planning Sequence

??APO is used to make strategic, tactical, and operational decisions:

??DP is used for long-term demand planning

??In SNP there is mid-term production, distribution and procurement planning

??PP/DS is used for short-term production planning

??Deployment plans short-term replenishment planning

??In Transportation Planning, routes are optimized and transportation methods are loaded as near to capacity as possible

© SAP AG AP010 10-4

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The Demand Planning Concept


R/3Excel

Non-SAP system

? Incoming orders? Quantities

? Values

? Billing document? Quantities

? Values

? …

? Statistical forecasting

? Collaborative forecasting

? Promotions

Sold-to party

Product hierarchy

Location

Region

Sales organization

BW




© SAP AG AP010 10-5

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Supply Network Planning Scenario

? SNP plans the material flow along the supply chain

? Mid- to long-term, finite, cross-plant planning

? Prioritization of demands; supply optimization

? Result: Feasible plans

Demand Plan

Supplier Plant DC Customer

??The role of Supply Network Planning involves:


??Integrating purchasing, production, and distribution in one consistent model in the entire supply network

??Synchronizing activities and planning material flow along the supply chain

© SAP AG AP010 10-6

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Comparison of Mid- and Short-Term Planning

Productionhorizon

ForecastsSales ordersForecastsSales orders

Supply Network PlanningProduction Planning / Detailed Scheduling

?SNP planned orders

?Purchase requisitions

?Stock transfers

?PP/DS planned orders

?Purchase requisitions

?Stock transfers

?SNP BOM and routing

?Cross-plant finite planning

?Distribution and procurement

?Quantity and bucket-oriented

?No pegging

?PP/DS BOM and routing

? Finite, detailed planning per location

?Sequences and setup times

?Continuous and order-related

?Pegging

Time


??SNP uses advanced optimization techniques, based on constraints and penalties, to plan product flow along the supply chain. The result is optimal purchasing, production, and distribution decisions, reduced order fulfillment times and inventory levels, and improved customer service.

??Pegging is the link between receipts and issues along the supply chain. When an order is shifted, all dependent orders can be adjusted automatically.

© SAP AG AP010 10-7

? SAP AG 2001

Customer

Functions of Production Planning / DetailedScheduling (PP/DS)

? Plans production, externalprocurement, and stock transferwithin the production plant to-the-minute

? Plans simultaneous materialrequirements and schedules finitecapacity at operation level for theshort-term horizon

? Takes order sequences intoaccount

? Optimizes machine schedules(sequences, lead times)

? Transfers the planning results toan execution system (such as theR/3 Shop Floor Control)

Time

Resource 3

Resource 2

Resource 1

30

20

10

Resource 1Resource 2

Resource 3

??Production Planning and Detailed Scheduling (PP/DS) is used mainly for short-term to-the-minute planning (both for in-house production and external procurement) in the production plant. PP/DS schedules and plans all operations of an order that are relevant for planning at the different resources. PP/DS has the following functions:

??It generates planned orders (to plan in-house production), and purchase requisitions or scheduling agreement schedule lines (to plan external procurement) in the event of product shortage. It uses simultaneous material and capacity requirements planning to do this: You can define resources as “finite” resources (planning-critical resources) in the resource master. Order operations are only created at these resources if there is sufficient capacity for the order quantity on the corresponding date. When there is no available capacity, the system searches for a date on which the order operation can be carried out, taking account of the capacity situation.

??Takes order sequences into account: when new in-house production orders are created, the setup times in the new order can be determined automatically from the setup status of the resources (depending on the preceding order).

??It is possible to display the orders in graphic format (in the detailed scheduling planning board), and to sequence from there. Alternatively you can use the optimizer to execute a sequencing.

??Machine scheduling optimization: during planning, it is possible for orders to be generated that do not have an optimum order sequence. Therefore, you can change the sequence and resource assignments of existing orders using the optimization run.

??PP/DS is a planning tool. Execution functions such as confirmations and goods receipts are performed in the execution system (for example, R/3). Therefore, the planning results are transferred to the execution system.

© SAP AG AP010 10-8

? SAP AG 2001

Transportation Planning & Vehicle Scheduling(TP/VS)

Sales orders,stock transfers,

forecasts

Simultaneous routeand load/weightplanning

Selection oftransportation provider

Vehicleresources

TLB ordersExpress orders

Goal:

Deliveries andtransportation orders in R/3

Optimizer

© SAP AG AP010 10-9

? SAP AG 2001

Sales order

Planned orders

R/3 APOSD ATPATP request


No ATP Make Planned orders

MRP

Confirmation

Update time series

ATP Integration with PP/DS and R/3

??Event-driven: In the R/3 APO interface you can define that the ATP check in the sales order should not be carried out in R/3 but in APO, as soon as a sales order is created. If you create a sales order in R/3, the system first checks if there is enough stock available for the requested product. The system can also check if receipts (for example, production orders and planned orders) have already been planned by the requested date.

??Time series: Planned orders and production orders are aggregrated and represented in a time series, which can be used to evaluate the incoming requests from the sales orders.

??Rules-based ATP: When there is no availability, you can configure in APO that the system should carry out the availability check for the product in another location or else for an alternative product.

??Integration with PP/DS : You can also define that the sales order should trigger production directly if a product is not available. If it triggers an order for in-house production, APO creates a planned order for the desired quantity in PP/DS. All of the operations are scheduled on the resources, and the system takes the capacity restrictions into account (available capacity and orders that may have already been scheduled). In addition, component availability can be checked. If the capacities are already exhausted on the desired date, the system uses simultaneous material and capacity requirements planning to find a date on which the planned order can be created. The availability date of the newly-created planned order (end date) is returned to the R/3 sales order and adopted as an internal confirmation date. Using shipment scheduling, the date on which the product reaches the customer is determined in the sales order. In the R/3 sales order the sales employee recognizes these proposed delivery dates.

© SAP AG AP010 10-11

In dieser Dokumentation verwendete Abkürzungen

APO Advanced Planner and Optimizer

APS Advanced Planning System

ATP Verfügbarkeitsprüfung (Available -to-Promise)

BBP Business to Business Procurement (B2B)

BAPI Business Application Programming Interface

BW SAP Business Information Warehouse

CIF Core Interface (Schnittstelle für Stamm- und Bewegungsdaten R/3-APO)

CPFR Collaborative Planning, Forecasting and Replenishment

CRM Customer Relationship Management

CTM Capable -to-Match (Multi-Level Supply and Demand Matching (SDM))

DC Distributionszentrum (DZ)

DP Absatzplanung (Demand Planning)

DS Feinplanung (Detailed Scheduling)

iPPE integriertes Produkt- und Prozeß- Engineering

LES Logistics Execution System (=LE, Warehouse Management (WM))

KPI Key Performance Indicator

MLR Multiple lineare Regression

MRP Material Requirements Planning

MRPII Manufacturing Resource Planning

OLTP Online Transaction Processing System

OLAP Online Analytical Processing System

PP Produktionsplanung

PPM Produktionsprozeßmodell (APO Stückliste und Arbeitsplan zugeordnet)

SCC Supply Chain Cockpit

SCE Supply Chain Engineer; Supply-Chain-Execution

SCM Supply-Chain-Management

SEM Strategic Enterprise Management

SNP Supply Network Planning

SOP Sales and Operations Planning (Absatz- und Produktionsgrobplanung)

TDL Transportdienstleister

TLB Transport Load Builder

TP/VS Transportation Planning / Vehicle Scheduling

VMI Vendor-Managed-Inventory

APO10.pdf

Documents

Transcript of APO10.pdf