Sap Sd Variant Configuration for Beginners

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CE v5.6

Lars Friedrich

Munich, 11.05.2006

Planning of variant configured products with SAP SCMfor the discrete industry



CE v5.8 © 2006 Capgemini - A"A#$A%& C(%F$) 2

Short Terms

BOM Bill of Material

OPP Order-Penetration-Point

POS Point-of-Sales

KPI Key Performance Indicators

APO Advanced Planning and Optimizer

DP Demand Planning

PP/DS Production Planning / Detailed Sceduling

!B" !arateristics Based "orecasting

!DP !arateristics Dependent Planning

iPP# Integrated Product and Process #ngineering



CE v5.8 © 2006 Capgemini - A"A#$A%& C(%F$) /

AGENDA

Introduction to variant configuration

Managemen! varian! cmpe3i!4

(vervie panning prcess r cnigured prduc!s

"arian! cnigura!in and panning i!h A CM 5.0

enei!s 7 )aps



CE v5.8 © 2006 Capgemini - A"A#$A%& C(%F$)

ariants of a product are mutations of the !asic model !y adding orleaving out components

Definition $%ariants&

i!h7i!hu! middearmres!

i!h7i!hu! pevicgirde

i!h7i!hu! rarmres!

i!h7i!hu!!res!

i!h7i!hu! !hreepin! girde

i!h7i!hu! spin!s4s!em

incina!in r 9ac:res! 20 r 0

9us sea! i!hea!her r nrma

The number of the selectable components drive the complexity of the BOM.

The number of the selectable components drive the complexity of the BOM.

265 variants combination




The change on customer demand and increased mar"et competition hasled to a variant e#plosion

ariants past and today

!enry "ord#$%ou can buy your carin any color& so long as

its blac'.(

)*)* + )*2* ariants

combinations possible

),*- 2**5




The increase of variant comple#ity is mainly caused !y e#ternal factors

Main driver for variant comple'ity

xternal

a!ura!in mar:e!s

$ncreasing cmpe!i!in pressure

earch r mar:e! niches anddiversiica!in

Las and nrms r dieren! mar:e!

;uic:er prduc! ie c4ces

$ncreasing g9ai<a!in - dieren!re=uiremen!s r a prduc! 94 regin

xternal drivers can notbe influenced by the

company

Internal factors can beinfluenced through

process optimi/ation

Internal

$ncreasing cmpan4 si<e

>eici!s inrma!in andcrdina!ini!hin !he cmpan4 depar!men!s

>minance !he crea!ive devepers

and saes depar!men!

mu!ipe surcing



CE v5.8 © 2006 Capgemini - A"A#$A%& C(%F$) ?

AGENDA

$n!rduc!in ! varian! cnigura!in

Management of variant complexity



enei!s 7 )aps




Successful variant management must !e understood as a strategiccorporate target

Main strategic action for reduction of variant complexity

100

80

50

successful companiesafter process optimi/ation

less successful companies

before process optimi/ation

percen!

!urnver

%um9er prduc! varian!s pr100 Mi *@ !urnver

50 100 150 200 250 /00

ariant analysis

ariant reductions

ariant controlling

urce ein< %i3dr $ns!i!u!e



CE v5.8 © 2006 Capgemini - A"A#$A%& C(%F$) B

AC - !urnver7prduc! ana4<e

$or a %ualitative evaluation of the variant variety an com!inedA&C and '() analysis can !e used

Methods for variant analysis

A C

D

D -!urnver7cus!mer ana4<e

p r 1 d u c !

cus!mer

C

A

D

cri!ica area

"arian! ana4sis

"arian! reduc!ins

"arian! cn!ring

cus!mer 1prduc! L

cus!mer /prduc! L

cus!mer 2prduc! %

cus!mer /prduc!

cus!mer 1prduc! #

cus!mer 2prduc! #

cus!mer /

prduc! #




Product modulari*ation is implemented !y the multiple use of the sameparts+ classes and assem!ly

Metods of modularization

0tandardi/ation

Individuali/ation

Modulari/ation

ariant structure

The impacts on variant complexity should be already analy/edduring the development process of a product.

The impacts on variant complexity should be already analy/edduring the development process of a product.

"arian! ana4sis

"arian! reduc!ins

"arian! cn!ring

eries ac:e!s

a!rms uiding se!s




The num!er of assem!ly variants can !e reduced !y positioning the,rder-Penetration-Point downstream in the production process

ariant structure "arian! ana4sis

"arian! reduc!ins

"arian! cn!ring

p 1 i n

! - 1 2 - s a e s

p 1 i n ! - 1 2 - s a e s

cus!mer ann4mus4 prduc!in cus!mer speciic prduc!in

cus!mer ann4mus4 prduc!in cus!mer speciic prduc!in

6 e 2 1 r e

A 2 ! e r

conomies of 0cales conomies of 0cope

(

(




The reduction of variant comple#ity should !e continuouslymeasured !y using a predefined set of .P/s

#'amples of KPIs for variant controlling "arian! ana4sis

"arian! reduc!ins

"arian! cn!ring

1I

%um9er p!ina cmpnen!sin cmparisn i!h

!!a par!s end prduc!

%um9er varian!sin cmparisn i!h

!urnver

ri! per varian! in cmparisn i!h!!a pri! margin

Cs! 94 charac!eris!ic vaue;1 ;2 ;/ ;




AGENDA



Overvie3 of planning process for configured products


enei!s 7 )aps




Purchasing and preproduction of assem!lies is driven !y the forecast whereas the final production is triggered !y the configured sales order

Overvie3 of planning process for variant configured products in discrete industry

roduction xecutionroduct configuration

and order entryroduction planning of

end item

urchasing andreproduction

"orecasting

ee:s

n u m 9 e r 1 2 G




Characteristics of a product drive the comple#ity of a Super-&,M

!aracteristics and Super-BOM

ump type unger

#!ar4 +ing +e! pi!

4onnection #igh!-anged ange #und ange

otationdirection Cc:ise cc:ise !h

4olor ue ac:

#ed

Mode Manua Eec!ric

Maximum

pump lift 2 - 100 m

ump for +a!er (i +as!e a!er uspensin

ange (pen Csed

Options +i!h

suppr! +i!hdraing

5**

0uper BOM

Manue Eec!ric

(i+a!er +as!e+a!er

us-pensin




The purchasing and preproduction is e#ploded !y using apre-planning &,M

Industry e'ample for variant configured

7

) 250 50

B

) 250 50

ump -500

7) 2

0,5 0,5

0,25 0,25 0,25 0,25

The re8uirements for components is based on usage probability.The re8uirements for components is based on usage probability.

anning (M

uper (M




The purchasing and pre-production is !ased on acharacteristics !ased forecast

Planning process (it !B"

ump -500

"aue 1 "aue 2

"aue 1 "aue 2

4haracteristics value combinations

A11 A1 2 A2 1 A2 2

4haracteristics 7 4haracteristics B

7) B) 7) B2 72 B) 72 B2

100 100 50 50

100 100 50 50

BOM xplosion

3ee' 5**

1 /00

2 /00

9emand lan "orecast




AGENDA




ariant configuration and planning 3ith 07 04M 5.*

enei!s 7 )aps




The DP and PP0DS modules have !een used for demo scenario

Scope of used SAP S!M )*+ modules

07 04M 5.*

other modules

> e m a n d . a n n i n g

. r 1

d u c ! i 1 n . a n n i n g 7

> e ! a i c h e d u i n g

u p p 4 % e ! 5 1 r :

. a n n i n g

)

1 9 a - A v a i a 9 e -

! 1 - . r 1 m i s e

& r a n s p 1 r ! " e h i c e

c h e d u i n g

e r v i c e . a r ! s

. a n n i n g

$ n v e n ! 1 r 4 C 1 a 9 1 r a ! i 1 n

, u 9

H u

p p 4 C h a i n E v e n !

M a n a g e m e n !

u p p 4 C h a i n

C 1 a 9 1 r a ! i 1 n

F 1 r e c a s ! a n d

#

e p e n i s h m e n !

H E 3 ! e n d e d + a r e h 1 u s e

M a n a g e m e n !

07 :;

7O modules

>

Charac!eris!ics vaue

cm9ina!in are

adIus!a9e >emand pan i!hCF is cnigura9e

7>

#e=uiremen!s can9e e3pded

saes rder can 9ecnsumed i!hre=uiremen!s




The Super-&,M and Super-1outing represents the main master data inSAP for variant configuration

Master 9ata re8uired for planning processes

Material Master

9ependencies

recndi!in, rcedure, Ac!in, Cns!rain!s N

4lass

4onfiguration

profile 0uper outing0uper BOM

ne eve

Mu!i Leve

rice for

variants

"1 O200 P

"2 O200 P

"/ O200 P

4haracteristics




The master data for variant configuration is transferred via C/$ fromSAP 102 to AP,

Integration of master data for variant configuration

4I"

:; 7O

Material masters

lant

4lasses:

4haracteristics

<or' center r: cen!er r -500

$n!egra!in mder: cen!er

CL'5001 Q 2?

$n!egra!in mdeCLA7CA#

1000$n!egra!in mde

an!

-500 Rcmpnen!s

$n!egra!in mdeMa!eria

roduction schedule

BOM structureouting structure

prduc!in versini!h (M

#u!ing s!ruc!ure

$n!egra!in mde>

prere8uisite for 9

prere8uisite for :90

=ocation

roduct

esource

roduction 9ata 0tructure




Changes on Product Data Structure must !e reali*ed via 102 andnot in AP,

Structure of PDS

-500

Manue Eec!ric

(i+a!er +as!e+a!er

us-pensin

-500

Manue

Eec!ric(i

+a!er

+as!e+a!er

uspensin

i!hu! >

i!h >

7O

rduc!in versin

(M s!ruc!ure

#u!ings s!ruc!ure

:;

1

2

/

Ma!eria Mas!er

Cass 7 Chara!eris!ics

an!

+r: cen!er

am9urg

am9urg

Integrated Product and Process #ngineering > i ? is another possibility for the transfer ofstructure data. "or the scenario 3e have used 90.

Integrated Product and Process #ngineering > i ? is another possibility for the transfer ofstructure data. "or the scenario 3e have used 90.

4I"




The Planning &oo" is used to create the Demand Plan !ased on thecharacteristics value com!ination

Demand Planning (it !arateristics %alue !om,ination

e demand for eac caracteristic is calculated ,y a prognosis ,ased onistorical data in te Info !u,e*

e demand for eac caracteristic is calculated ,y a prognosis ,ased onistorical data in te Info !u,e*

Chse charac!eris!icsr prduc! and panning

9:

eec!ed (9Iec! "ie

eec! speciic charac!er vaue cm9ina!in r

demand pan

ead "ie

Crea!e demand panr charac!eris!icscm9ina!ins

>emand pan




After release of the demand plan from DP to PP0DS the &,M is e#plodedcreating re%uirements on component level

BOM e'plosion in PP/DS

9emand lan

roduct 9emand

-500 /00

4haracteristics 9emand

A11 100

A12 100

A21 50

A22 50

4onfigure product level

4haracteristics valuecombinations

:90

7> crea!eindependen!re=uiremen!s

-500

>e3pde

Crea!ere=uiremen!s

r cmpnen!s

PP/DS creates planned independent re.uirements at configured product level*en te PDS is e'ploded0 te system determines te dependent demand for

te components ,y referring to te demand plan for te caracteristic com,inations*

PP/DS creates planned independent re.uirements at configured product level*en te PDS is e'ploded0 te system determines te dependent demand for

te components ,y referring to te demand plan for te caracteristic com,inations*




Sales order in 102 consume planned independent re%uirementsfor the same configuration

!onsumption (it sales order

9emand lan

4haracteristics 9emand

A11 100

A12 100

A21 50

A22 50

characteristics valuecombinations

0ales order :;

4haracteristics order

A11 10

A12 120

A21 0

A22 0

sales order

configured product

4haracteristics demand

A11 B0

4onsumption :90

A12 -20

A21 50

A22 50

A!er crea!e saes rder in#7/ !he > cnsume !here=uiremen!s i!h cniguredprduc!

*se pan s!ra!eg4 56 in #7/r crrec! saes rder!ranser




AGENDA





Benefits : @aps

, ! d f l i f i d ! h




AP, can !e used for planning for variant product+ !ut there aresome restrictions of handling the comple#ity

Benefits and 1aps of variant configuration in SAP S!M )*+

Benefits

uppr! A #7/ is u4 in!egra!ed

E3ac!4 panning i!h charac!eris!ics9ased recas!ing

rgnsis i!h his!r4 da!a pssi9e

&ime4 !ranser demand pan! cus!mer pssi9e

Aggrega!in 7 disaggrega!in r saesca!in and cus!mer pssi9e

*sa9ii!4 r !her A CMcmpnen!s pssi9e

@aps

CF and C> canS! use !ge!her in !hesame !ime

J Charac!eris!ics >ependen! anning is use in prcessindus!r4, e.g. aper indus!r4 K

Mdue upp4 %e!r: anning cann! hande charac!eris!ics

Lac: usa9ii!4 i!h high num9er varian!s

%! man4 indus!r4 e3ampes here A(

is aread4 used r panning varian!cnigured prduc!s

@enerally 7O is feasible for planningvariant configured product for

discrete industry

@enerally 7O is feasible for planningvariant configured product for

discrete industry

!o3ever& 3ith a high number ofcharacteristics value combination andmultiple variant levels& 4B" can be to

complex.

!o3ever& 3ith a high number ofcharacteristics value combination andmultiple variant levels& 4B" can be to

complex.



B741A

&AC.-3P



CE v5 8 © 2006 Capgemini A/

Curriculum vitae

ducation and competence

<or' experience

*niversi!4 Appied ciences Erur!$ndus!ria Engineer in &ranspr! and Cmmunica!insmain curse gis!ics, ma!eria , reigh! !raic inish in Tu4 2006, s!ar! in ep!em9er 94 Capgemini

&ngIi *niversi!4 hanghai, .#. China J 6 mn!hs KChinese 9usiness and anguage

Cmpe!ence in "arian! managemen! Lean rduc!in 4s!em Ue4 errmance $ndica!r A #7/, A(

=evel# 0tudent

Dationality# @erman

=anguage# @erman& nglish&0panish& 4hinese

9iploma thesis4apgemini 7@& Munich > ; E months ?

9epartment# 0upply chain management

rduc!in panning and de!aied scheduing r varian!cnigura!in i!h A CM 5.0

Internship 9aimler4hrysler 7@& 0tuttgart > 6 months ?

9epartment# Truc' roduct 4reation : =ogistics strategy

$mpemen!a!in a upp4 Ue4 errmance $ndica!e Q &in a aggrega!ins and assem94 pan!s 94 >C &ruc:

rettl company group& Fueretaro: Mexico > 6 months ?

9epartment# logistics& customer service

$mpemen!a!in Lean rduc!in 4s!em

anning ramp up r ne prduc! ine >evepmen! a suppier vaua!in !

0tudent assistant at department traffic and transportation

$mpemen!a!in and prepara!in ec!ure r !he inrma!inmanagemen! s4s!em A#$

Dame# =ars "riedrich

Sap Sd Variant Configuration for Beginners

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