SAPinsiderSCM2013CampbellSaperpversussapapofinal

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7/17/2019 SAPinsiderSCM2013CampbellSaperpversussapapofinal http://slidepdf.com/reader/full/sapinsiderscm2013campbellsaperpversussapapofinal 1/62  © Copyright 2013 Wellesley Information Services, Inc. All rights reserved. SAP ERP Versus SAP APO: Which Production Planning Functionality Do I Use, and How Can I Be Successful? Matthew Campbell SCMO2

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SAPinsiderSCM2013CampbellSaperpversussapapofinal

Transcript of SAPinsiderSCM2013CampbellSaperpversussapapofinal

Page 1: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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copy Copyright 2013Wellesley Information Services Inc

All rights reserved

SAP ERP Versus SAPAPO Which ProductionPlanning FunctionalityDo I Use and How Can IBe Successful

Matthew CampbellSCMO2

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1

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDS

bull Wrap-up

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2

MMPurchasing

PPProduction

Execution

APO

DPDemand

Planning

SNPSupply

Network

Planning

PPDSProduction Planning

Detailed

Scheduling

MDBasic Planning

functionality

mySAP

CRM

SAP Advanced Planning

amp Optimization (SAP APO)

SAP Supply Network

Collaboration

(SAP SNC)

SAP Event Management

(SAP EM)

SCM

SAP SCM

Materials Management(SAP MM)

Sales and Distribution

(SAP SD)

Manufacturing

(SAP PP)

Logistics Execution

System (SAP LES)

Basic SAP production planning

functionality available in both platforms

APO provides robust and advanced

functionality to support forecastingcapacity planning and production

scheduling

Both platforms are integrated with ERP

execution functionality

Advanced Planningfunctionality

SAP Supply Chain Execution

ERP

SAP Supply Chain Planning Functionality

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3

ECC Legacy

R3 OLTP

Non R3

OLTP

Application Link EnablingModel Generator Mapping Connectivity

BW

APO

SolversAPO

liveCacheliveCache

Demand

Planning

PPDSTPVSSupplyNetworkPlanning

AvailableTo

Promise

SC Cockpit

SAP APO Architecture

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4

Production Planning in PP vs APOSAP PP

Supply Chain Execution

Flexible Planning

Production Scheduling

Long Term Planning

MRP

CRP

ATP Check

Standard SOPDemand Planning

Supply Network

Planning

Supply Network

Planning or PPDS

Production Planning

Detailed Scheduling

GATP

SAP APO

LO - LIS BW

Custom SOP

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5

SAP ECC

Purchasing(MM)

Production Planning (PP)

Flexible Planning

Sales orderSales ampDistribution (SD)

Demandmanagement

Plannedindreqmts

Logistics Execution System(LES)

ReleaseConfirmations

Planned orderProcess order

Purchase requisitionPurchase order

Stock transport

requisition

DeliveryTransfer order

Execution

ERP Production Planning Sequence

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6

Purchasing(MM)

Production Planning (PP)

Demand Planning (DP)

Conversion

Flexible Planning

SAP ERP APO

Supply Network Planning (SNP)Prod Plng amp Det Schedlng (PPDS)

Plannedindreqmts

Sales order

Consumption

Sales orderSales ampDistribution (SD)

Demandmanagement Plannedindreqmts

Transp Plng amp Veh Schedlng(TPVS)

Deploy-ment

Logistics Execution System(LES)

ReleaseConfirmations

Planned orderProcess order

Purchase requisition

Purchase order

Stock transport requisitionStock transport order

Planned order

Process order

Purchase requisitionPurchase order

Stock transportrequisition

Planned deliveryDeliveryDelivery

Transfer order Planned shipmentShipmentExecution

APO Planning Sequence with SAP ERP

Integration

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Supply Planning

Demand Planning (DP)

DetailedProductionScheduling

PPDS

MaterialsRequirements

Planning

SNPPPDSSupplyNetworkPlanning

ManufacturingExecution

PP

SampOPIntegration

SNP

MASTER DATA

APO Planning Process FlowProduction Planning Flow

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Sales order

Planned ind reqmts

Planned order

Purchase requisition

Dependent

requirements

Planned order

Dependentrequirements

Finished

product

Semi-Finishedproduct

PackagingComponent Raw material

SAP ERP MRP

Supports dynamic

and fixed pegging

PPDS Order Pegging

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9

receipt

Sales order

Planned order

Dependent reqmt

Planned order

Dependent reqmt

Purchasereq

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)

requirement

PPDS scheduling capability makeuse of pegging relationships toschedule operations and orders

Pegging Across the Order Network mdash

Overview

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10

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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11

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Materials Requirements

Planning (MRP)

Can plan all materials but typically non-key components MRO

Provides infinite time-phased planning and consumption-based

planning using top-down approach

Evaluate plant-level results using real-time IndividualCollective Stock Requirements List static MRP List

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Basic Production Planning CapabilityNet Requirements Calculation

Stock on Hand -Forecast

Dependent

Demands

Safety Stock

Sales OrdersPlanned

Orders

PurchaseRequisitions

Net

requirement

Requirement

elements

Productionor Process

Orders

Receipt

elements

Purchase

Orders

=+

Production Planningcapability provided by

both ERP and APOalso consider lot sizesand safety stocksettings

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MRP with SAP ERPbull Demands are the sales orders and the planned independent requirements

bull Orders are created time-phased from the requirement date

bull MRP is infinite planning without considering capacity constraint

bull Considerations with MRP in SAP ERP

MRP is based on a specific plant or MRP area

Low-level code determination limited to plant

Planning scope sequence must be maintained for distribution planning

Selection criteria supports material MRP controllerplant

Business-specific planning solution possible only with an enhancement

Demands

Time

Orders

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SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Master Production Scheduling

(MPS)

Option for planning finished goods and key components

Uses materials with MRP Type M0 ndash M4 BOMs work centers

resources routingsrecipes

Provides infinite time-phased planning using top-downapproach with separate capacity planning step

Similar evaluation as MRP

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SAP ERP Stock Requirements List Transaction (MD04)bull Displays requirements and receipts

bull Starting inventory

bull Branch to inventory information

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SAP ERP mdash Capacity Requirement Planning

(CRP)

bull Capacity leveling is a two-step process

1 Capacity evaluation (overload vs under load)

2 Manual dispatch to the work centers or the resources

Capacity load

100

BACKWARD FORWARD

Time

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SAP ERP Dispatching Screen

bull Planning Table

bull Manual Order Dispatching ndash assign work center

Ordersavailable to

dispatch

Workcenters -

Availablecapacity Manually place

order on wcwith available

capacity

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SAP ERP Production Planning and Schedulingbull Capacity Planning using SAP PP Capacity Evaluation

Review capacity load for single plant work centers in weekly buckets

Drill down to individual plannedproduction ordersbull Detailed Scheduling using SAP PP Capacity Leveling

Dispatch unscheduled operations from the order pool in desired

sequence

Reschedule dispatched operations using drag amp drop or return

operations to the order pool and re-dispatch

bull Production Schedule Reporting

Use Order Information System or custom reportsbull Procurement Reporting

Use Purchase Requisition Report and other MM reports

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SCM APO Production Planning and Scheduling

bull Plans APO-relevant materials APO resources and PPM or PDS

bull Master Production Planning using APO SNP

Uses same data as APO SNP Rough-Cut Planning

Plans across locations using SNP data view with daily and

weekly buckets over shorter horizon

Evaluate results in product-based dailyweekly data view andSNP alerts

bull Detailed Production Planning using APO PPDS

Use multi-step background job to create planned orders andpurchase requisitions

Evaluate results using the Product View Product Overview and

PPDS alerts

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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PPDS mdash Detailed Scheduling Board

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APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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Alert Monitor

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APO PPDS Evaluation mdash Resource Load

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Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 2: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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1

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDS

bull Wrap-up

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2

MMPurchasing

PPProduction

Execution

APO

DPDemand

Planning

SNPSupply

Network

Planning

PPDSProduction Planning

Detailed

Scheduling

MDBasic Planning

functionality

mySAP

CRM

SAP Advanced Planning

amp Optimization (SAP APO)

SAP Supply Network

Collaboration

(SAP SNC)

SAP Event Management

(SAP EM)

SCM

SAP SCM

Materials Management(SAP MM)

Sales and Distribution

(SAP SD)

Manufacturing

(SAP PP)

Logistics Execution

System (SAP LES)

Basic SAP production planning

functionality available in both platforms

APO provides robust and advanced

functionality to support forecastingcapacity planning and production

scheduling

Both platforms are integrated with ERP

execution functionality

Advanced Planningfunctionality

SAP Supply Chain Execution

ERP

SAP Supply Chain Planning Functionality

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3

ECC Legacy

R3 OLTP

Non R3

OLTP

Application Link EnablingModel Generator Mapping Connectivity

BW

APO

SolversAPO

liveCacheliveCache

Demand

Planning

PPDSTPVSSupplyNetworkPlanning

AvailableTo

Promise

SC Cockpit

SAP APO Architecture

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4

Production Planning in PP vs APOSAP PP

Supply Chain Execution

Flexible Planning

Production Scheduling

Long Term Planning

MRP

CRP

ATP Check

Standard SOPDemand Planning

Supply Network

Planning

Supply Network

Planning or PPDS

Production Planning

Detailed Scheduling

GATP

SAP APO

LO - LIS BW

Custom SOP

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5

SAP ECC

Purchasing(MM)

Production Planning (PP)

Flexible Planning

Sales orderSales ampDistribution (SD)

Demandmanagement

Plannedindreqmts

Logistics Execution System(LES)

ReleaseConfirmations

Planned orderProcess order

Purchase requisitionPurchase order

Stock transport

requisition

DeliveryTransfer order

Execution

ERP Production Planning Sequence

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6

Purchasing(MM)

Production Planning (PP)

Demand Planning (DP)

Conversion

Flexible Planning

SAP ERP APO

Supply Network Planning (SNP)Prod Plng amp Det Schedlng (PPDS)

Plannedindreqmts

Sales order

Consumption

Sales orderSales ampDistribution (SD)

Demandmanagement Plannedindreqmts

Transp Plng amp Veh Schedlng(TPVS)

Deploy-ment

Logistics Execution System(LES)

ReleaseConfirmations

Planned orderProcess order

Purchase requisition

Purchase order

Stock transport requisitionStock transport order

Planned order

Process order

Purchase requisitionPurchase order

Stock transportrequisition

Planned deliveryDeliveryDelivery

Transfer order Planned shipmentShipmentExecution

APO Planning Sequence with SAP ERP

Integration

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7

Supply Planning

Demand Planning (DP)

DetailedProductionScheduling

PPDS

MaterialsRequirements

Planning

SNPPPDSSupplyNetworkPlanning

ManufacturingExecution

PP

SampOPIntegration

SNP

MASTER DATA

APO Planning Process FlowProduction Planning Flow

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8

Sales order

Planned ind reqmts

Planned order

Purchase requisition

Dependent

requirements

Planned order

Dependentrequirements

Finished

product

Semi-Finishedproduct

PackagingComponent Raw material

SAP ERP MRP

Supports dynamic

and fixed pegging

PPDS Order Pegging

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9

receipt

Sales order

Planned order

Dependent reqmt

Planned order

Dependent reqmt

Purchasereq

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)

requirement

PPDS scheduling capability makeuse of pegging relationships toschedule operations and orders

Pegging Across the Order Network mdash

Overview

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10

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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11

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Materials Requirements

Planning (MRP)

Can plan all materials but typically non-key components MRO

Provides infinite time-phased planning and consumption-based

planning using top-down approach

Evaluate plant-level results using real-time IndividualCollective Stock Requirements List static MRP List

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12

Basic Production Planning CapabilityNet Requirements Calculation

Stock on Hand -Forecast

Dependent

Demands

Safety Stock

Sales OrdersPlanned

Orders

PurchaseRequisitions

Net

requirement

Requirement

elements

Productionor Process

Orders

Receipt

elements

Purchase

Orders

=+

Production Planningcapability provided by

both ERP and APOalso consider lot sizesand safety stocksettings

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13

MRP with SAP ERPbull Demands are the sales orders and the planned independent requirements

bull Orders are created time-phased from the requirement date

bull MRP is infinite planning without considering capacity constraint

bull Considerations with MRP in SAP ERP

MRP is based on a specific plant or MRP area

Low-level code determination limited to plant

Planning scope sequence must be maintained for distribution planning

Selection criteria supports material MRP controllerplant

Business-specific planning solution possible only with an enhancement

Demands

Time

Orders

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14

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Master Production Scheduling

(MPS)

Option for planning finished goods and key components

Uses materials with MRP Type M0 ndash M4 BOMs work centers

resources routingsrecipes

Provides infinite time-phased planning using top-downapproach with separate capacity planning step

Similar evaluation as MRP

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15

SAP ERP Stock Requirements List Transaction (MD04)bull Displays requirements and receipts

bull Starting inventory

bull Branch to inventory information

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16

SAP ERP mdash Capacity Requirement Planning

(CRP)

bull Capacity leveling is a two-step process

1 Capacity evaluation (overload vs under load)

2 Manual dispatch to the work centers or the resources

Capacity load

100

BACKWARD FORWARD

Time

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17

SAP ERP Dispatching Screen

bull Planning Table

bull Manual Order Dispatching ndash assign work center

Ordersavailable to

dispatch

Workcenters -

Availablecapacity Manually place

order on wcwith available

capacity

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18

SAP ERP Production Planning and Schedulingbull Capacity Planning using SAP PP Capacity Evaluation

Review capacity load for single plant work centers in weekly buckets

Drill down to individual plannedproduction ordersbull Detailed Scheduling using SAP PP Capacity Leveling

Dispatch unscheduled operations from the order pool in desired

sequence

Reschedule dispatched operations using drag amp drop or return

operations to the order pool and re-dispatch

bull Production Schedule Reporting

Use Order Information System or custom reportsbull Procurement Reporting

Use Purchase Requisition Report and other MM reports

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19

SCM APO Production Planning and Scheduling

bull Plans APO-relevant materials APO resources and PPM or PDS

bull Master Production Planning using APO SNP

Uses same data as APO SNP Rough-Cut Planning

Plans across locations using SNP data view with daily and

weekly buckets over shorter horizon

Evaluate results in product-based dailyweekly data view andSNP alerts

bull Detailed Production Planning using APO PPDS

Use multi-step background job to create planned orders andpurchase requisitions

Evaluate results using the Product View Product Overview and

PPDS alerts

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

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2

MMPurchasing

PPProduction

Execution

APO

DPDemand

Planning

SNPSupply

Network

Planning

PPDSProduction Planning

Detailed

Scheduling

MDBasic Planning

functionality

mySAP

CRM

SAP Advanced Planning

amp Optimization (SAP APO)

SAP Supply Network

Collaboration

(SAP SNC)

SAP Event Management

(SAP EM)

SCM

SAP SCM

Materials Management(SAP MM)

Sales and Distribution

(SAP SD)

Manufacturing

(SAP PP)

Logistics Execution

System (SAP LES)

Basic SAP production planning

functionality available in both platforms

APO provides robust and advanced

functionality to support forecastingcapacity planning and production

scheduling

Both platforms are integrated with ERP

execution functionality

Advanced Planningfunctionality

SAP Supply Chain Execution

ERP

SAP Supply Chain Planning Functionality

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3

ECC Legacy

R3 OLTP

Non R3

OLTP

Application Link EnablingModel Generator Mapping Connectivity

BW

APO

SolversAPO

liveCacheliveCache

Demand

Planning

PPDSTPVSSupplyNetworkPlanning

AvailableTo

Promise

SC Cockpit

SAP APO Architecture

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4

Production Planning in PP vs APOSAP PP

Supply Chain Execution

Flexible Planning

Production Scheduling

Long Term Planning

MRP

CRP

ATP Check

Standard SOPDemand Planning

Supply Network

Planning

Supply Network

Planning or PPDS

Production Planning

Detailed Scheduling

GATP

SAP APO

LO - LIS BW

Custom SOP

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5

SAP ECC

Purchasing(MM)

Production Planning (PP)

Flexible Planning

Sales orderSales ampDistribution (SD)

Demandmanagement

Plannedindreqmts

Logistics Execution System(LES)

ReleaseConfirmations

Planned orderProcess order

Purchase requisitionPurchase order

Stock transport

requisition

DeliveryTransfer order

Execution

ERP Production Planning Sequence

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6

Purchasing(MM)

Production Planning (PP)

Demand Planning (DP)

Conversion

Flexible Planning

SAP ERP APO

Supply Network Planning (SNP)Prod Plng amp Det Schedlng (PPDS)

Plannedindreqmts

Sales order

Consumption

Sales orderSales ampDistribution (SD)

Demandmanagement Plannedindreqmts

Transp Plng amp Veh Schedlng(TPVS)

Deploy-ment

Logistics Execution System(LES)

ReleaseConfirmations

Planned orderProcess order

Purchase requisition

Purchase order

Stock transport requisitionStock transport order

Planned order

Process order

Purchase requisitionPurchase order

Stock transportrequisition

Planned deliveryDeliveryDelivery

Transfer order Planned shipmentShipmentExecution

APO Planning Sequence with SAP ERP

Integration

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7

Supply Planning

Demand Planning (DP)

DetailedProductionScheduling

PPDS

MaterialsRequirements

Planning

SNPPPDSSupplyNetworkPlanning

ManufacturingExecution

PP

SampOPIntegration

SNP

MASTER DATA

APO Planning Process FlowProduction Planning Flow

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8

Sales order

Planned ind reqmts

Planned order

Purchase requisition

Dependent

requirements

Planned order

Dependentrequirements

Finished

product

Semi-Finishedproduct

PackagingComponent Raw material

SAP ERP MRP

Supports dynamic

and fixed pegging

PPDS Order Pegging

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9

receipt

Sales order

Planned order

Dependent reqmt

Planned order

Dependent reqmt

Purchasereq

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)

requirement

PPDS scheduling capability makeuse of pegging relationships toschedule operations and orders

Pegging Across the Order Network mdash

Overview

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10

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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11

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Materials Requirements

Planning (MRP)

Can plan all materials but typically non-key components MRO

Provides infinite time-phased planning and consumption-based

planning using top-down approach

Evaluate plant-level results using real-time IndividualCollective Stock Requirements List static MRP List

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12

Basic Production Planning CapabilityNet Requirements Calculation

Stock on Hand -Forecast

Dependent

Demands

Safety Stock

Sales OrdersPlanned

Orders

PurchaseRequisitions

Net

requirement

Requirement

elements

Productionor Process

Orders

Receipt

elements

Purchase

Orders

=+

Production Planningcapability provided by

both ERP and APOalso consider lot sizesand safety stocksettings

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13

MRP with SAP ERPbull Demands are the sales orders and the planned independent requirements

bull Orders are created time-phased from the requirement date

bull MRP is infinite planning without considering capacity constraint

bull Considerations with MRP in SAP ERP

MRP is based on a specific plant or MRP area

Low-level code determination limited to plant

Planning scope sequence must be maintained for distribution planning

Selection criteria supports material MRP controllerplant

Business-specific planning solution possible only with an enhancement

Demands

Time

Orders

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14

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Master Production Scheduling

(MPS)

Option for planning finished goods and key components

Uses materials with MRP Type M0 ndash M4 BOMs work centers

resources routingsrecipes

Provides infinite time-phased planning using top-downapproach with separate capacity planning step

Similar evaluation as MRP

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15

SAP ERP Stock Requirements List Transaction (MD04)bull Displays requirements and receipts

bull Starting inventory

bull Branch to inventory information

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16

SAP ERP mdash Capacity Requirement Planning

(CRP)

bull Capacity leveling is a two-step process

1 Capacity evaluation (overload vs under load)

2 Manual dispatch to the work centers or the resources

Capacity load

100

BACKWARD FORWARD

Time

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17

SAP ERP Dispatching Screen

bull Planning Table

bull Manual Order Dispatching ndash assign work center

Ordersavailable to

dispatch

Workcenters -

Availablecapacity Manually place

order on wcwith available

capacity

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18

SAP ERP Production Planning and Schedulingbull Capacity Planning using SAP PP Capacity Evaluation

Review capacity load for single plant work centers in weekly buckets

Drill down to individual plannedproduction ordersbull Detailed Scheduling using SAP PP Capacity Leveling

Dispatch unscheduled operations from the order pool in desired

sequence

Reschedule dispatched operations using drag amp drop or return

operations to the order pool and re-dispatch

bull Production Schedule Reporting

Use Order Information System or custom reportsbull Procurement Reporting

Use Purchase Requisition Report and other MM reports

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19

SCM APO Production Planning and Scheduling

bull Plans APO-relevant materials APO resources and PPM or PDS

bull Master Production Planning using APO SNP

Uses same data as APO SNP Rough-Cut Planning

Plans across locations using SNP data view with daily and

weekly buckets over shorter horizon

Evaluate results in product-based dailyweekly data view andSNP alerts

bull Detailed Production Planning using APO PPDS

Use multi-step background job to create planned orders andpurchase requisitions

Evaluate results using the Product View Product Overview and

PPDS alerts

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 4: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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3

ECC Legacy

R3 OLTP

Non R3

OLTP

Application Link EnablingModel Generator Mapping Connectivity

BW

APO

SolversAPO

liveCacheliveCache

Demand

Planning

PPDSTPVSSupplyNetworkPlanning

AvailableTo

Promise

SC Cockpit

SAP APO Architecture

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4

Production Planning in PP vs APOSAP PP

Supply Chain Execution

Flexible Planning

Production Scheduling

Long Term Planning

MRP

CRP

ATP Check

Standard SOPDemand Planning

Supply Network

Planning

Supply Network

Planning or PPDS

Production Planning

Detailed Scheduling

GATP

SAP APO

LO - LIS BW

Custom SOP

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5

SAP ECC

Purchasing(MM)

Production Planning (PP)

Flexible Planning

Sales orderSales ampDistribution (SD)

Demandmanagement

Plannedindreqmts

Logistics Execution System(LES)

ReleaseConfirmations

Planned orderProcess order

Purchase requisitionPurchase order

Stock transport

requisition

DeliveryTransfer order

Execution

ERP Production Planning Sequence

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6

Purchasing(MM)

Production Planning (PP)

Demand Planning (DP)

Conversion

Flexible Planning

SAP ERP APO

Supply Network Planning (SNP)Prod Plng amp Det Schedlng (PPDS)

Plannedindreqmts

Sales order

Consumption

Sales orderSales ampDistribution (SD)

Demandmanagement Plannedindreqmts

Transp Plng amp Veh Schedlng(TPVS)

Deploy-ment

Logistics Execution System(LES)

ReleaseConfirmations

Planned orderProcess order

Purchase requisition

Purchase order

Stock transport requisitionStock transport order

Planned order

Process order

Purchase requisitionPurchase order

Stock transportrequisition

Planned deliveryDeliveryDelivery

Transfer order Planned shipmentShipmentExecution

APO Planning Sequence with SAP ERP

Integration

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7

Supply Planning

Demand Planning (DP)

DetailedProductionScheduling

PPDS

MaterialsRequirements

Planning

SNPPPDSSupplyNetworkPlanning

ManufacturingExecution

PP

SampOPIntegration

SNP

MASTER DATA

APO Planning Process FlowProduction Planning Flow

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8

Sales order

Planned ind reqmts

Planned order

Purchase requisition

Dependent

requirements

Planned order

Dependentrequirements

Finished

product

Semi-Finishedproduct

PackagingComponent Raw material

SAP ERP MRP

Supports dynamic

and fixed pegging

PPDS Order Pegging

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9

receipt

Sales order

Planned order

Dependent reqmt

Planned order

Dependent reqmt

Purchasereq

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)

requirement

PPDS scheduling capability makeuse of pegging relationships toschedule operations and orders

Pegging Across the Order Network mdash

Overview

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10

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 1262

11

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Materials Requirements

Planning (MRP)

Can plan all materials but typically non-key components MRO

Provides infinite time-phased planning and consumption-based

planning using top-down approach

Evaluate plant-level results using real-time IndividualCollective Stock Requirements List static MRP List

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12

Basic Production Planning CapabilityNet Requirements Calculation

Stock on Hand -Forecast

Dependent

Demands

Safety Stock

Sales OrdersPlanned

Orders

PurchaseRequisitions

Net

requirement

Requirement

elements

Productionor Process

Orders

Receipt

elements

Purchase

Orders

=+

Production Planningcapability provided by

both ERP and APOalso consider lot sizesand safety stocksettings

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13

MRP with SAP ERPbull Demands are the sales orders and the planned independent requirements

bull Orders are created time-phased from the requirement date

bull MRP is infinite planning without considering capacity constraint

bull Considerations with MRP in SAP ERP

MRP is based on a specific plant or MRP area

Low-level code determination limited to plant

Planning scope sequence must be maintained for distribution planning

Selection criteria supports material MRP controllerplant

Business-specific planning solution possible only with an enhancement

Demands

Time

Orders

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14

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Master Production Scheduling

(MPS)

Option for planning finished goods and key components

Uses materials with MRP Type M0 ndash M4 BOMs work centers

resources routingsrecipes

Provides infinite time-phased planning using top-downapproach with separate capacity planning step

Similar evaluation as MRP

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15

SAP ERP Stock Requirements List Transaction (MD04)bull Displays requirements and receipts

bull Starting inventory

bull Branch to inventory information

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16

SAP ERP mdash Capacity Requirement Planning

(CRP)

bull Capacity leveling is a two-step process

1 Capacity evaluation (overload vs under load)

2 Manual dispatch to the work centers or the resources

Capacity load

100

BACKWARD FORWARD

Time

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17

SAP ERP Dispatching Screen

bull Planning Table

bull Manual Order Dispatching ndash assign work center

Ordersavailable to

dispatch

Workcenters -

Availablecapacity Manually place

order on wcwith available

capacity

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18

SAP ERP Production Planning and Schedulingbull Capacity Planning using SAP PP Capacity Evaluation

Review capacity load for single plant work centers in weekly buckets

Drill down to individual plannedproduction ordersbull Detailed Scheduling using SAP PP Capacity Leveling

Dispatch unscheduled operations from the order pool in desired

sequence

Reschedule dispatched operations using drag amp drop or return

operations to the order pool and re-dispatch

bull Production Schedule Reporting

Use Order Information System or custom reportsbull Procurement Reporting

Use Purchase Requisition Report and other MM reports

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19

SCM APO Production Planning and Scheduling

bull Plans APO-relevant materials APO resources and PPM or PDS

bull Master Production Planning using APO SNP

Uses same data as APO SNP Rough-Cut Planning

Plans across locations using SNP data view with daily and

weekly buckets over shorter horizon

Evaluate results in product-based dailyweekly data view andSNP alerts

bull Detailed Production Planning using APO PPDS

Use multi-step background job to create planned orders andpurchase requisitions

Evaluate results using the Product View Product Overview and

PPDS alerts

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

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4

Production Planning in PP vs APOSAP PP

Supply Chain Execution

Flexible Planning

Production Scheduling

Long Term Planning

MRP

CRP

ATP Check

Standard SOPDemand Planning

Supply Network

Planning

Supply Network

Planning or PPDS

Production Planning

Detailed Scheduling

GATP

SAP APO

LO - LIS BW

Custom SOP

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5

SAP ECC

Purchasing(MM)

Production Planning (PP)

Flexible Planning

Sales orderSales ampDistribution (SD)

Demandmanagement

Plannedindreqmts

Logistics Execution System(LES)

ReleaseConfirmations

Planned orderProcess order

Purchase requisitionPurchase order

Stock transport

requisition

DeliveryTransfer order

Execution

ERP Production Planning Sequence

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6

Purchasing(MM)

Production Planning (PP)

Demand Planning (DP)

Conversion

Flexible Planning

SAP ERP APO

Supply Network Planning (SNP)Prod Plng amp Det Schedlng (PPDS)

Plannedindreqmts

Sales order

Consumption

Sales orderSales ampDistribution (SD)

Demandmanagement Plannedindreqmts

Transp Plng amp Veh Schedlng(TPVS)

Deploy-ment

Logistics Execution System(LES)

ReleaseConfirmations

Planned orderProcess order

Purchase requisition

Purchase order

Stock transport requisitionStock transport order

Planned order

Process order

Purchase requisitionPurchase order

Stock transportrequisition

Planned deliveryDeliveryDelivery

Transfer order Planned shipmentShipmentExecution

APO Planning Sequence with SAP ERP

Integration

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7

Supply Planning

Demand Planning (DP)

DetailedProductionScheduling

PPDS

MaterialsRequirements

Planning

SNPPPDSSupplyNetworkPlanning

ManufacturingExecution

PP

SampOPIntegration

SNP

MASTER DATA

APO Planning Process FlowProduction Planning Flow

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8

Sales order

Planned ind reqmts

Planned order

Purchase requisition

Dependent

requirements

Planned order

Dependentrequirements

Finished

product

Semi-Finishedproduct

PackagingComponent Raw material

SAP ERP MRP

Supports dynamic

and fixed pegging

PPDS Order Pegging

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9

receipt

Sales order

Planned order

Dependent reqmt

Planned order

Dependent reqmt

Purchasereq

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)

requirement

PPDS scheduling capability makeuse of pegging relationships toschedule operations and orders

Pegging Across the Order Network mdash

Overview

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10

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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11

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Materials Requirements

Planning (MRP)

Can plan all materials but typically non-key components MRO

Provides infinite time-phased planning and consumption-based

planning using top-down approach

Evaluate plant-level results using real-time IndividualCollective Stock Requirements List static MRP List

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12

Basic Production Planning CapabilityNet Requirements Calculation

Stock on Hand -Forecast

Dependent

Demands

Safety Stock

Sales OrdersPlanned

Orders

PurchaseRequisitions

Net

requirement

Requirement

elements

Productionor Process

Orders

Receipt

elements

Purchase

Orders

=+

Production Planningcapability provided by

both ERP and APOalso consider lot sizesand safety stocksettings

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13

MRP with SAP ERPbull Demands are the sales orders and the planned independent requirements

bull Orders are created time-phased from the requirement date

bull MRP is infinite planning without considering capacity constraint

bull Considerations with MRP in SAP ERP

MRP is based on a specific plant or MRP area

Low-level code determination limited to plant

Planning scope sequence must be maintained for distribution planning

Selection criteria supports material MRP controllerplant

Business-specific planning solution possible only with an enhancement

Demands

Time

Orders

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14

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Master Production Scheduling

(MPS)

Option for planning finished goods and key components

Uses materials with MRP Type M0 ndash M4 BOMs work centers

resources routingsrecipes

Provides infinite time-phased planning using top-downapproach with separate capacity planning step

Similar evaluation as MRP

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15

SAP ERP Stock Requirements List Transaction (MD04)bull Displays requirements and receipts

bull Starting inventory

bull Branch to inventory information

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16

SAP ERP mdash Capacity Requirement Planning

(CRP)

bull Capacity leveling is a two-step process

1 Capacity evaluation (overload vs under load)

2 Manual dispatch to the work centers or the resources

Capacity load

100

BACKWARD FORWARD

Time

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17

SAP ERP Dispatching Screen

bull Planning Table

bull Manual Order Dispatching ndash assign work center

Ordersavailable to

dispatch

Workcenters -

Availablecapacity Manually place

order on wcwith available

capacity

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18

SAP ERP Production Planning and Schedulingbull Capacity Planning using SAP PP Capacity Evaluation

Review capacity load for single plant work centers in weekly buckets

Drill down to individual plannedproduction ordersbull Detailed Scheduling using SAP PP Capacity Leveling

Dispatch unscheduled operations from the order pool in desired

sequence

Reschedule dispatched operations using drag amp drop or return

operations to the order pool and re-dispatch

bull Production Schedule Reporting

Use Order Information System or custom reportsbull Procurement Reporting

Use Purchase Requisition Report and other MM reports

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19

SCM APO Production Planning and Scheduling

bull Plans APO-relevant materials APO resources and PPM or PDS

bull Master Production Planning using APO SNP

Uses same data as APO SNP Rough-Cut Planning

Plans across locations using SNP data view with daily and

weekly buckets over shorter horizon

Evaluate results in product-based dailyweekly data view andSNP alerts

bull Detailed Production Planning using APO PPDS

Use multi-step background job to create planned orders andpurchase requisitions

Evaluate results using the Product View Product Overview and

PPDS alerts

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

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5

SAP ECC

Purchasing(MM)

Production Planning (PP)

Flexible Planning

Sales orderSales ampDistribution (SD)

Demandmanagement

Plannedindreqmts

Logistics Execution System(LES)

ReleaseConfirmations

Planned orderProcess order

Purchase requisitionPurchase order

Stock transport

requisition

DeliveryTransfer order

Execution

ERP Production Planning Sequence

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6

Purchasing(MM)

Production Planning (PP)

Demand Planning (DP)

Conversion

Flexible Planning

SAP ERP APO

Supply Network Planning (SNP)Prod Plng amp Det Schedlng (PPDS)

Plannedindreqmts

Sales order

Consumption

Sales orderSales ampDistribution (SD)

Demandmanagement Plannedindreqmts

Transp Plng amp Veh Schedlng(TPVS)

Deploy-ment

Logistics Execution System(LES)

ReleaseConfirmations

Planned orderProcess order

Purchase requisition

Purchase order

Stock transport requisitionStock transport order

Planned order

Process order

Purchase requisitionPurchase order

Stock transportrequisition

Planned deliveryDeliveryDelivery

Transfer order Planned shipmentShipmentExecution

APO Planning Sequence with SAP ERP

Integration

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7

Supply Planning

Demand Planning (DP)

DetailedProductionScheduling

PPDS

MaterialsRequirements

Planning

SNPPPDSSupplyNetworkPlanning

ManufacturingExecution

PP

SampOPIntegration

SNP

MASTER DATA

APO Planning Process FlowProduction Planning Flow

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8

Sales order

Planned ind reqmts

Planned order

Purchase requisition

Dependent

requirements

Planned order

Dependentrequirements

Finished

product

Semi-Finishedproduct

PackagingComponent Raw material

SAP ERP MRP

Supports dynamic

and fixed pegging

PPDS Order Pegging

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9

receipt

Sales order

Planned order

Dependent reqmt

Planned order

Dependent reqmt

Purchasereq

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)

requirement

PPDS scheduling capability makeuse of pegging relationships toschedule operations and orders

Pegging Across the Order Network mdash

Overview

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10

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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11

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Materials Requirements

Planning (MRP)

Can plan all materials but typically non-key components MRO

Provides infinite time-phased planning and consumption-based

planning using top-down approach

Evaluate plant-level results using real-time IndividualCollective Stock Requirements List static MRP List

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12

Basic Production Planning CapabilityNet Requirements Calculation

Stock on Hand -Forecast

Dependent

Demands

Safety Stock

Sales OrdersPlanned

Orders

PurchaseRequisitions

Net

requirement

Requirement

elements

Productionor Process

Orders

Receipt

elements

Purchase

Orders

=+

Production Planningcapability provided by

both ERP and APOalso consider lot sizesand safety stocksettings

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13

MRP with SAP ERPbull Demands are the sales orders and the planned independent requirements

bull Orders are created time-phased from the requirement date

bull MRP is infinite planning without considering capacity constraint

bull Considerations with MRP in SAP ERP

MRP is based on a specific plant or MRP area

Low-level code determination limited to plant

Planning scope sequence must be maintained for distribution planning

Selection criteria supports material MRP controllerplant

Business-specific planning solution possible only with an enhancement

Demands

Time

Orders

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14

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Master Production Scheduling

(MPS)

Option for planning finished goods and key components

Uses materials with MRP Type M0 ndash M4 BOMs work centers

resources routingsrecipes

Provides infinite time-phased planning using top-downapproach with separate capacity planning step

Similar evaluation as MRP

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15

SAP ERP Stock Requirements List Transaction (MD04)bull Displays requirements and receipts

bull Starting inventory

bull Branch to inventory information

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16

SAP ERP mdash Capacity Requirement Planning

(CRP)

bull Capacity leveling is a two-step process

1 Capacity evaluation (overload vs under load)

2 Manual dispatch to the work centers or the resources

Capacity load

100

BACKWARD FORWARD

Time

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17

SAP ERP Dispatching Screen

bull Planning Table

bull Manual Order Dispatching ndash assign work center

Ordersavailable to

dispatch

Workcenters -

Availablecapacity Manually place

order on wcwith available

capacity

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18

SAP ERP Production Planning and Schedulingbull Capacity Planning using SAP PP Capacity Evaluation

Review capacity load for single plant work centers in weekly buckets

Drill down to individual plannedproduction ordersbull Detailed Scheduling using SAP PP Capacity Leveling

Dispatch unscheduled operations from the order pool in desired

sequence

Reschedule dispatched operations using drag amp drop or return

operations to the order pool and re-dispatch

bull Production Schedule Reporting

Use Order Information System or custom reportsbull Procurement Reporting

Use Purchase Requisition Report and other MM reports

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19

SCM APO Production Planning and Scheduling

bull Plans APO-relevant materials APO resources and PPM or PDS

bull Master Production Planning using APO SNP

Uses same data as APO SNP Rough-Cut Planning

Plans across locations using SNP data view with daily and

weekly buckets over shorter horizon

Evaluate results in product-based dailyweekly data view andSNP alerts

bull Detailed Production Planning using APO PPDS

Use multi-step background job to create planned orders andpurchase requisitions

Evaluate results using the Product View Product Overview and

PPDS alerts

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

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6

Purchasing(MM)

Production Planning (PP)

Demand Planning (DP)

Conversion

Flexible Planning

SAP ERP APO

Supply Network Planning (SNP)Prod Plng amp Det Schedlng (PPDS)

Plannedindreqmts

Sales order

Consumption

Sales orderSales ampDistribution (SD)

Demandmanagement Plannedindreqmts

Transp Plng amp Veh Schedlng(TPVS)

Deploy-ment

Logistics Execution System(LES)

ReleaseConfirmations

Planned orderProcess order

Purchase requisition

Purchase order

Stock transport requisitionStock transport order

Planned order

Process order

Purchase requisitionPurchase order

Stock transportrequisition

Planned deliveryDeliveryDelivery

Transfer order Planned shipmentShipmentExecution

APO Planning Sequence with SAP ERP

Integration

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7

Supply Planning

Demand Planning (DP)

DetailedProductionScheduling

PPDS

MaterialsRequirements

Planning

SNPPPDSSupplyNetworkPlanning

ManufacturingExecution

PP

SampOPIntegration

SNP

MASTER DATA

APO Planning Process FlowProduction Planning Flow

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8

Sales order

Planned ind reqmts

Planned order

Purchase requisition

Dependent

requirements

Planned order

Dependentrequirements

Finished

product

Semi-Finishedproduct

PackagingComponent Raw material

SAP ERP MRP

Supports dynamic

and fixed pegging

PPDS Order Pegging

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9

receipt

Sales order

Planned order

Dependent reqmt

Planned order

Dependent reqmt

Purchasereq

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)

requirement

PPDS scheduling capability makeuse of pegging relationships toschedule operations and orders

Pegging Across the Order Network mdash

Overview

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10

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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11

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Materials Requirements

Planning (MRP)

Can plan all materials but typically non-key components MRO

Provides infinite time-phased planning and consumption-based

planning using top-down approach

Evaluate plant-level results using real-time IndividualCollective Stock Requirements List static MRP List

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12

Basic Production Planning CapabilityNet Requirements Calculation

Stock on Hand -Forecast

Dependent

Demands

Safety Stock

Sales OrdersPlanned

Orders

PurchaseRequisitions

Net

requirement

Requirement

elements

Productionor Process

Orders

Receipt

elements

Purchase

Orders

=+

Production Planningcapability provided by

both ERP and APOalso consider lot sizesand safety stocksettings

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13

MRP with SAP ERPbull Demands are the sales orders and the planned independent requirements

bull Orders are created time-phased from the requirement date

bull MRP is infinite planning without considering capacity constraint

bull Considerations with MRP in SAP ERP

MRP is based on a specific plant or MRP area

Low-level code determination limited to plant

Planning scope sequence must be maintained for distribution planning

Selection criteria supports material MRP controllerplant

Business-specific planning solution possible only with an enhancement

Demands

Time

Orders

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14

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Master Production Scheduling

(MPS)

Option for planning finished goods and key components

Uses materials with MRP Type M0 ndash M4 BOMs work centers

resources routingsrecipes

Provides infinite time-phased planning using top-downapproach with separate capacity planning step

Similar evaluation as MRP

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15

SAP ERP Stock Requirements List Transaction (MD04)bull Displays requirements and receipts

bull Starting inventory

bull Branch to inventory information

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16

SAP ERP mdash Capacity Requirement Planning

(CRP)

bull Capacity leveling is a two-step process

1 Capacity evaluation (overload vs under load)

2 Manual dispatch to the work centers or the resources

Capacity load

100

BACKWARD FORWARD

Time

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17

SAP ERP Dispatching Screen

bull Planning Table

bull Manual Order Dispatching ndash assign work center

Ordersavailable to

dispatch

Workcenters -

Availablecapacity Manually place

order on wcwith available

capacity

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18

SAP ERP Production Planning and Schedulingbull Capacity Planning using SAP PP Capacity Evaluation

Review capacity load for single plant work centers in weekly buckets

Drill down to individual plannedproduction ordersbull Detailed Scheduling using SAP PP Capacity Leveling

Dispatch unscheduled operations from the order pool in desired

sequence

Reschedule dispatched operations using drag amp drop or return

operations to the order pool and re-dispatch

bull Production Schedule Reporting

Use Order Information System or custom reportsbull Procurement Reporting

Use Purchase Requisition Report and other MM reports

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19

SCM APO Production Planning and Scheduling

bull Plans APO-relevant materials APO resources and PPM or PDS

bull Master Production Planning using APO SNP

Uses same data as APO SNP Rough-Cut Planning

Plans across locations using SNP data view with daily and

weekly buckets over shorter horizon

Evaluate results in product-based dailyweekly data view andSNP alerts

bull Detailed Production Planning using APO PPDS

Use multi-step background job to create planned orders andpurchase requisitions

Evaluate results using the Product View Product Overview and

PPDS alerts

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

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7

Supply Planning

Demand Planning (DP)

DetailedProductionScheduling

PPDS

MaterialsRequirements

Planning

SNPPPDSSupplyNetworkPlanning

ManufacturingExecution

PP

SampOPIntegration

SNP

MASTER DATA

APO Planning Process FlowProduction Planning Flow

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8

Sales order

Planned ind reqmts

Planned order

Purchase requisition

Dependent

requirements

Planned order

Dependentrequirements

Finished

product

Semi-Finishedproduct

PackagingComponent Raw material

SAP ERP MRP

Supports dynamic

and fixed pegging

PPDS Order Pegging

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9

receipt

Sales order

Planned order

Dependent reqmt

Planned order

Dependent reqmt

Purchasereq

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)

requirement

PPDS scheduling capability makeuse of pegging relationships toschedule operations and orders

Pegging Across the Order Network mdash

Overview

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10

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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11

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Materials Requirements

Planning (MRP)

Can plan all materials but typically non-key components MRO

Provides infinite time-phased planning and consumption-based

planning using top-down approach

Evaluate plant-level results using real-time IndividualCollective Stock Requirements List static MRP List

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12

Basic Production Planning CapabilityNet Requirements Calculation

Stock on Hand -Forecast

Dependent

Demands

Safety Stock

Sales OrdersPlanned

Orders

PurchaseRequisitions

Net

requirement

Requirement

elements

Productionor Process

Orders

Receipt

elements

Purchase

Orders

=+

Production Planningcapability provided by

both ERP and APOalso consider lot sizesand safety stocksettings

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13

MRP with SAP ERPbull Demands are the sales orders and the planned independent requirements

bull Orders are created time-phased from the requirement date

bull MRP is infinite planning without considering capacity constraint

bull Considerations with MRP in SAP ERP

MRP is based on a specific plant or MRP area

Low-level code determination limited to plant

Planning scope sequence must be maintained for distribution planning

Selection criteria supports material MRP controllerplant

Business-specific planning solution possible only with an enhancement

Demands

Time

Orders

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14

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Master Production Scheduling

(MPS)

Option for planning finished goods and key components

Uses materials with MRP Type M0 ndash M4 BOMs work centers

resources routingsrecipes

Provides infinite time-phased planning using top-downapproach with separate capacity planning step

Similar evaluation as MRP

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15

SAP ERP Stock Requirements List Transaction (MD04)bull Displays requirements and receipts

bull Starting inventory

bull Branch to inventory information

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16

SAP ERP mdash Capacity Requirement Planning

(CRP)

bull Capacity leveling is a two-step process

1 Capacity evaluation (overload vs under load)

2 Manual dispatch to the work centers or the resources

Capacity load

100

BACKWARD FORWARD

Time

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17

SAP ERP Dispatching Screen

bull Planning Table

bull Manual Order Dispatching ndash assign work center

Ordersavailable to

dispatch

Workcenters -

Availablecapacity Manually place

order on wcwith available

capacity

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18

SAP ERP Production Planning and Schedulingbull Capacity Planning using SAP PP Capacity Evaluation

Review capacity load for single plant work centers in weekly buckets

Drill down to individual plannedproduction ordersbull Detailed Scheduling using SAP PP Capacity Leveling

Dispatch unscheduled operations from the order pool in desired

sequence

Reschedule dispatched operations using drag amp drop or return

operations to the order pool and re-dispatch

bull Production Schedule Reporting

Use Order Information System or custom reportsbull Procurement Reporting

Use Purchase Requisition Report and other MM reports

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19

SCM APO Production Planning and Scheduling

bull Plans APO-relevant materials APO resources and PPM or PDS

bull Master Production Planning using APO SNP

Uses same data as APO SNP Rough-Cut Planning

Plans across locations using SNP data view with daily and

weekly buckets over shorter horizon

Evaluate results in product-based dailyweekly data view andSNP alerts

bull Detailed Production Planning using APO PPDS

Use multi-step background job to create planned orders andpurchase requisitions

Evaluate results using the Product View Product Overview and

PPDS alerts

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

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8

Sales order

Planned ind reqmts

Planned order

Purchase requisition

Dependent

requirements

Planned order

Dependentrequirements

Finished

product

Semi-Finishedproduct

PackagingComponent Raw material

SAP ERP MRP

Supports dynamic

and fixed pegging

PPDS Order Pegging

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9

receipt

Sales order

Planned order

Dependent reqmt

Planned order

Dependent reqmt

Purchasereq

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)

requirement

PPDS scheduling capability makeuse of pegging relationships toschedule operations and orders

Pegging Across the Order Network mdash

Overview

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10

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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11

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Materials Requirements

Planning (MRP)

Can plan all materials but typically non-key components MRO

Provides infinite time-phased planning and consumption-based

planning using top-down approach

Evaluate plant-level results using real-time IndividualCollective Stock Requirements List static MRP List

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12

Basic Production Planning CapabilityNet Requirements Calculation

Stock on Hand -Forecast

Dependent

Demands

Safety Stock

Sales OrdersPlanned

Orders

PurchaseRequisitions

Net

requirement

Requirement

elements

Productionor Process

Orders

Receipt

elements

Purchase

Orders

=+

Production Planningcapability provided by

both ERP and APOalso consider lot sizesand safety stocksettings

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13

MRP with SAP ERPbull Demands are the sales orders and the planned independent requirements

bull Orders are created time-phased from the requirement date

bull MRP is infinite planning without considering capacity constraint

bull Considerations with MRP in SAP ERP

MRP is based on a specific plant or MRP area

Low-level code determination limited to plant

Planning scope sequence must be maintained for distribution planning

Selection criteria supports material MRP controllerplant

Business-specific planning solution possible only with an enhancement

Demands

Time

Orders

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14

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Master Production Scheduling

(MPS)

Option for planning finished goods and key components

Uses materials with MRP Type M0 ndash M4 BOMs work centers

resources routingsrecipes

Provides infinite time-phased planning using top-downapproach with separate capacity planning step

Similar evaluation as MRP

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15

SAP ERP Stock Requirements List Transaction (MD04)bull Displays requirements and receipts

bull Starting inventory

bull Branch to inventory information

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16

SAP ERP mdash Capacity Requirement Planning

(CRP)

bull Capacity leveling is a two-step process

1 Capacity evaluation (overload vs under load)

2 Manual dispatch to the work centers or the resources

Capacity load

100

BACKWARD FORWARD

Time

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17

SAP ERP Dispatching Screen

bull Planning Table

bull Manual Order Dispatching ndash assign work center

Ordersavailable to

dispatch

Workcenters -

Availablecapacity Manually place

order on wcwith available

capacity

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18

SAP ERP Production Planning and Schedulingbull Capacity Planning using SAP PP Capacity Evaluation

Review capacity load for single plant work centers in weekly buckets

Drill down to individual plannedproduction ordersbull Detailed Scheduling using SAP PP Capacity Leveling

Dispatch unscheduled operations from the order pool in desired

sequence

Reschedule dispatched operations using drag amp drop or return

operations to the order pool and re-dispatch

bull Production Schedule Reporting

Use Order Information System or custom reportsbull Procurement Reporting

Use Purchase Requisition Report and other MM reports

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19

SCM APO Production Planning and Scheduling

bull Plans APO-relevant materials APO resources and PPM or PDS

bull Master Production Planning using APO SNP

Uses same data as APO SNP Rough-Cut Planning

Plans across locations using SNP data view with daily and

weekly buckets over shorter horizon

Evaluate results in product-based dailyweekly data view andSNP alerts

bull Detailed Production Planning using APO PPDS

Use multi-step background job to create planned orders andpurchase requisitions

Evaluate results using the Product View Product Overview and

PPDS alerts

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

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983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

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9

receipt

Sales order

Planned order

Dependent reqmt

Planned order

Dependent reqmt

Purchasereq

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)

requirement

PPDS scheduling capability makeuse of pegging relationships toschedule operations and orders

Pegging Across the Order Network mdash

Overview

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10

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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11

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Materials Requirements

Planning (MRP)

Can plan all materials but typically non-key components MRO

Provides infinite time-phased planning and consumption-based

planning using top-down approach

Evaluate plant-level results using real-time IndividualCollective Stock Requirements List static MRP List

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12

Basic Production Planning CapabilityNet Requirements Calculation

Stock on Hand -Forecast

Dependent

Demands

Safety Stock

Sales OrdersPlanned

Orders

PurchaseRequisitions

Net

requirement

Requirement

elements

Productionor Process

Orders

Receipt

elements

Purchase

Orders

=+

Production Planningcapability provided by

both ERP and APOalso consider lot sizesand safety stocksettings

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13

MRP with SAP ERPbull Demands are the sales orders and the planned independent requirements

bull Orders are created time-phased from the requirement date

bull MRP is infinite planning without considering capacity constraint

bull Considerations with MRP in SAP ERP

MRP is based on a specific plant or MRP area

Low-level code determination limited to plant

Planning scope sequence must be maintained for distribution planning

Selection criteria supports material MRP controllerplant

Business-specific planning solution possible only with an enhancement

Demands

Time

Orders

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14

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Master Production Scheduling

(MPS)

Option for planning finished goods and key components

Uses materials with MRP Type M0 ndash M4 BOMs work centers

resources routingsrecipes

Provides infinite time-phased planning using top-downapproach with separate capacity planning step

Similar evaluation as MRP

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15

SAP ERP Stock Requirements List Transaction (MD04)bull Displays requirements and receipts

bull Starting inventory

bull Branch to inventory information

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16

SAP ERP mdash Capacity Requirement Planning

(CRP)

bull Capacity leveling is a two-step process

1 Capacity evaluation (overload vs under load)

2 Manual dispatch to the work centers or the resources

Capacity load

100

BACKWARD FORWARD

Time

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17

SAP ERP Dispatching Screen

bull Planning Table

bull Manual Order Dispatching ndash assign work center

Ordersavailable to

dispatch

Workcenters -

Availablecapacity Manually place

order on wcwith available

capacity

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18

SAP ERP Production Planning and Schedulingbull Capacity Planning using SAP PP Capacity Evaluation

Review capacity load for single plant work centers in weekly buckets

Drill down to individual plannedproduction ordersbull Detailed Scheduling using SAP PP Capacity Leveling

Dispatch unscheduled operations from the order pool in desired

sequence

Reschedule dispatched operations using drag amp drop or return

operations to the order pool and re-dispatch

bull Production Schedule Reporting

Use Order Information System or custom reportsbull Procurement Reporting

Use Purchase Requisition Report and other MM reports

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19

SCM APO Production Planning and Scheduling

bull Plans APO-relevant materials APO resources and PPM or PDS

bull Master Production Planning using APO SNP

Uses same data as APO SNP Rough-Cut Planning

Plans across locations using SNP data view with daily and

weekly buckets over shorter horizon

Evaluate results in product-based dailyweekly data view andSNP alerts

bull Detailed Production Planning using APO PPDS

Use multi-step background job to create planned orders andpurchase requisitions

Evaluate results using the Product View Product Overview and

PPDS alerts

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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Alert Monitor

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APO PPDS Evaluation mdash Resource Load

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Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 11: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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10

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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11

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Materials Requirements

Planning (MRP)

Can plan all materials but typically non-key components MRO

Provides infinite time-phased planning and consumption-based

planning using top-down approach

Evaluate plant-level results using real-time IndividualCollective Stock Requirements List static MRP List

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12

Basic Production Planning CapabilityNet Requirements Calculation

Stock on Hand -Forecast

Dependent

Demands

Safety Stock

Sales OrdersPlanned

Orders

PurchaseRequisitions

Net

requirement

Requirement

elements

Productionor Process

Orders

Receipt

elements

Purchase

Orders

=+

Production Planningcapability provided by

both ERP and APOalso consider lot sizesand safety stocksettings

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13

MRP with SAP ERPbull Demands are the sales orders and the planned independent requirements

bull Orders are created time-phased from the requirement date

bull MRP is infinite planning without considering capacity constraint

bull Considerations with MRP in SAP ERP

MRP is based on a specific plant or MRP area

Low-level code determination limited to plant

Planning scope sequence must be maintained for distribution planning

Selection criteria supports material MRP controllerplant

Business-specific planning solution possible only with an enhancement

Demands

Time

Orders

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14

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Master Production Scheduling

(MPS)

Option for planning finished goods and key components

Uses materials with MRP Type M0 ndash M4 BOMs work centers

resources routingsrecipes

Provides infinite time-phased planning using top-downapproach with separate capacity planning step

Similar evaluation as MRP

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15

SAP ERP Stock Requirements List Transaction (MD04)bull Displays requirements and receipts

bull Starting inventory

bull Branch to inventory information

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16

SAP ERP mdash Capacity Requirement Planning

(CRP)

bull Capacity leveling is a two-step process

1 Capacity evaluation (overload vs under load)

2 Manual dispatch to the work centers or the resources

Capacity load

100

BACKWARD FORWARD

Time

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17

SAP ERP Dispatching Screen

bull Planning Table

bull Manual Order Dispatching ndash assign work center

Ordersavailable to

dispatch

Workcenters -

Availablecapacity Manually place

order on wcwith available

capacity

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18

SAP ERP Production Planning and Schedulingbull Capacity Planning using SAP PP Capacity Evaluation

Review capacity load for single plant work centers in weekly buckets

Drill down to individual plannedproduction ordersbull Detailed Scheduling using SAP PP Capacity Leveling

Dispatch unscheduled operations from the order pool in desired

sequence

Reschedule dispatched operations using drag amp drop or return

operations to the order pool and re-dispatch

bull Production Schedule Reporting

Use Order Information System or custom reportsbull Procurement Reporting

Use Purchase Requisition Report and other MM reports

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19

SCM APO Production Planning and Scheduling

bull Plans APO-relevant materials APO resources and PPM or PDS

bull Master Production Planning using APO SNP

Uses same data as APO SNP Rough-Cut Planning

Plans across locations using SNP data view with daily and

weekly buckets over shorter horizon

Evaluate results in product-based dailyweekly data view andSNP alerts

bull Detailed Production Planning using APO PPDS

Use multi-step background job to create planned orders andpurchase requisitions

Evaluate results using the Product View Product Overview and

PPDS alerts

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

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11

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Materials Requirements

Planning (MRP)

Can plan all materials but typically non-key components MRO

Provides infinite time-phased planning and consumption-based

planning using top-down approach

Evaluate plant-level results using real-time IndividualCollective Stock Requirements List static MRP List

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12

Basic Production Planning CapabilityNet Requirements Calculation

Stock on Hand -Forecast

Dependent

Demands

Safety Stock

Sales OrdersPlanned

Orders

PurchaseRequisitions

Net

requirement

Requirement

elements

Productionor Process

Orders

Receipt

elements

Purchase

Orders

=+

Production Planningcapability provided by

both ERP and APOalso consider lot sizesand safety stocksettings

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13

MRP with SAP ERPbull Demands are the sales orders and the planned independent requirements

bull Orders are created time-phased from the requirement date

bull MRP is infinite planning without considering capacity constraint

bull Considerations with MRP in SAP ERP

MRP is based on a specific plant or MRP area

Low-level code determination limited to plant

Planning scope sequence must be maintained for distribution planning

Selection criteria supports material MRP controllerplant

Business-specific planning solution possible only with an enhancement

Demands

Time

Orders

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14

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Master Production Scheduling

(MPS)

Option for planning finished goods and key components

Uses materials with MRP Type M0 ndash M4 BOMs work centers

resources routingsrecipes

Provides infinite time-phased planning using top-downapproach with separate capacity planning step

Similar evaluation as MRP

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15

SAP ERP Stock Requirements List Transaction (MD04)bull Displays requirements and receipts

bull Starting inventory

bull Branch to inventory information

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16

SAP ERP mdash Capacity Requirement Planning

(CRP)

bull Capacity leveling is a two-step process

1 Capacity evaluation (overload vs under load)

2 Manual dispatch to the work centers or the resources

Capacity load

100

BACKWARD FORWARD

Time

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17

SAP ERP Dispatching Screen

bull Planning Table

bull Manual Order Dispatching ndash assign work center

Ordersavailable to

dispatch

Workcenters -

Availablecapacity Manually place

order on wcwith available

capacity

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18

SAP ERP Production Planning and Schedulingbull Capacity Planning using SAP PP Capacity Evaluation

Review capacity load for single plant work centers in weekly buckets

Drill down to individual plannedproduction ordersbull Detailed Scheduling using SAP PP Capacity Leveling

Dispatch unscheduled operations from the order pool in desired

sequence

Reschedule dispatched operations using drag amp drop or return

operations to the order pool and re-dispatch

bull Production Schedule Reporting

Use Order Information System or custom reportsbull Procurement Reporting

Use Purchase Requisition Report and other MM reports

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19

SCM APO Production Planning and Scheduling

bull Plans APO-relevant materials APO resources and PPM or PDS

bull Master Production Planning using APO SNP

Uses same data as APO SNP Rough-Cut Planning

Plans across locations using SNP data view with daily and

weekly buckets over shorter horizon

Evaluate results in product-based dailyweekly data view andSNP alerts

bull Detailed Production Planning using APO PPDS

Use multi-step background job to create planned orders andpurchase requisitions

Evaluate results using the Product View Product Overview and

PPDS alerts

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

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12

Basic Production Planning CapabilityNet Requirements Calculation

Stock on Hand -Forecast

Dependent

Demands

Safety Stock

Sales OrdersPlanned

Orders

PurchaseRequisitions

Net

requirement

Requirement

elements

Productionor Process

Orders

Receipt

elements

Purchase

Orders

=+

Production Planningcapability provided by

both ERP and APOalso consider lot sizesand safety stocksettings

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13

MRP with SAP ERPbull Demands are the sales orders and the planned independent requirements

bull Orders are created time-phased from the requirement date

bull MRP is infinite planning without considering capacity constraint

bull Considerations with MRP in SAP ERP

MRP is based on a specific plant or MRP area

Low-level code determination limited to plant

Planning scope sequence must be maintained for distribution planning

Selection criteria supports material MRP controllerplant

Business-specific planning solution possible only with an enhancement

Demands

Time

Orders

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14

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Master Production Scheduling

(MPS)

Option for planning finished goods and key components

Uses materials with MRP Type M0 ndash M4 BOMs work centers

resources routingsrecipes

Provides infinite time-phased planning using top-downapproach with separate capacity planning step

Similar evaluation as MRP

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15

SAP ERP Stock Requirements List Transaction (MD04)bull Displays requirements and receipts

bull Starting inventory

bull Branch to inventory information

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16

SAP ERP mdash Capacity Requirement Planning

(CRP)

bull Capacity leveling is a two-step process

1 Capacity evaluation (overload vs under load)

2 Manual dispatch to the work centers or the resources

Capacity load

100

BACKWARD FORWARD

Time

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17

SAP ERP Dispatching Screen

bull Planning Table

bull Manual Order Dispatching ndash assign work center

Ordersavailable to

dispatch

Workcenters -

Availablecapacity Manually place

order on wcwith available

capacity

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18

SAP ERP Production Planning and Schedulingbull Capacity Planning using SAP PP Capacity Evaluation

Review capacity load for single plant work centers in weekly buckets

Drill down to individual plannedproduction ordersbull Detailed Scheduling using SAP PP Capacity Leveling

Dispatch unscheduled operations from the order pool in desired

sequence

Reschedule dispatched operations using drag amp drop or return

operations to the order pool and re-dispatch

bull Production Schedule Reporting

Use Order Information System or custom reportsbull Procurement Reporting

Use Purchase Requisition Report and other MM reports

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19

SCM APO Production Planning and Scheduling

bull Plans APO-relevant materials APO resources and PPM or PDS

bull Master Production Planning using APO SNP

Uses same data as APO SNP Rough-Cut Planning

Plans across locations using SNP data view with daily and

weekly buckets over shorter horizon

Evaluate results in product-based dailyweekly data view andSNP alerts

bull Detailed Production Planning using APO PPDS

Use multi-step background job to create planned orders andpurchase requisitions

Evaluate results using the Product View Product Overview and

PPDS alerts

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

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13

MRP with SAP ERPbull Demands are the sales orders and the planned independent requirements

bull Orders are created time-phased from the requirement date

bull MRP is infinite planning without considering capacity constraint

bull Considerations with MRP in SAP ERP

MRP is based on a specific plant or MRP area

Low-level code determination limited to plant

Planning scope sequence must be maintained for distribution planning

Selection criteria supports material MRP controllerplant

Business-specific planning solution possible only with an enhancement

Demands

Time

Orders

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14

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Master Production Scheduling

(MPS)

Option for planning finished goods and key components

Uses materials with MRP Type M0 ndash M4 BOMs work centers

resources routingsrecipes

Provides infinite time-phased planning using top-downapproach with separate capacity planning step

Similar evaluation as MRP

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15

SAP ERP Stock Requirements List Transaction (MD04)bull Displays requirements and receipts

bull Starting inventory

bull Branch to inventory information

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16

SAP ERP mdash Capacity Requirement Planning

(CRP)

bull Capacity leveling is a two-step process

1 Capacity evaluation (overload vs under load)

2 Manual dispatch to the work centers or the resources

Capacity load

100

BACKWARD FORWARD

Time

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17

SAP ERP Dispatching Screen

bull Planning Table

bull Manual Order Dispatching ndash assign work center

Ordersavailable to

dispatch

Workcenters -

Availablecapacity Manually place

order on wcwith available

capacity

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18

SAP ERP Production Planning and Schedulingbull Capacity Planning using SAP PP Capacity Evaluation

Review capacity load for single plant work centers in weekly buckets

Drill down to individual plannedproduction ordersbull Detailed Scheduling using SAP PP Capacity Leveling

Dispatch unscheduled operations from the order pool in desired

sequence

Reschedule dispatched operations using drag amp drop or return

operations to the order pool and re-dispatch

bull Production Schedule Reporting

Use Order Information System or custom reportsbull Procurement Reporting

Use Purchase Requisition Report and other MM reports

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19

SCM APO Production Planning and Scheduling

bull Plans APO-relevant materials APO resources and PPM or PDS

bull Master Production Planning using APO SNP

Uses same data as APO SNP Rough-Cut Planning

Plans across locations using SNP data view with daily and

weekly buckets over shorter horizon

Evaluate results in product-based dailyweekly data view andSNP alerts

bull Detailed Production Planning using APO PPDS

Use multi-step background job to create planned orders andpurchase requisitions

Evaluate results using the Product View Product Overview and

PPDS alerts

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

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14

SAP ERP Production Planning and Scheduling

bull Production Planning using SAP PP Master Production Scheduling

(MPS)

Option for planning finished goods and key components

Uses materials with MRP Type M0 ndash M4 BOMs work centers

resources routingsrecipes

Provides infinite time-phased planning using top-downapproach with separate capacity planning step

Similar evaluation as MRP

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15

SAP ERP Stock Requirements List Transaction (MD04)bull Displays requirements and receipts

bull Starting inventory

bull Branch to inventory information

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16

SAP ERP mdash Capacity Requirement Planning

(CRP)

bull Capacity leveling is a two-step process

1 Capacity evaluation (overload vs under load)

2 Manual dispatch to the work centers or the resources

Capacity load

100

BACKWARD FORWARD

Time

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17

SAP ERP Dispatching Screen

bull Planning Table

bull Manual Order Dispatching ndash assign work center

Ordersavailable to

dispatch

Workcenters -

Availablecapacity Manually place

order on wcwith available

capacity

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18

SAP ERP Production Planning and Schedulingbull Capacity Planning using SAP PP Capacity Evaluation

Review capacity load for single plant work centers in weekly buckets

Drill down to individual plannedproduction ordersbull Detailed Scheduling using SAP PP Capacity Leveling

Dispatch unscheduled operations from the order pool in desired

sequence

Reschedule dispatched operations using drag amp drop or return

operations to the order pool and re-dispatch

bull Production Schedule Reporting

Use Order Information System or custom reportsbull Procurement Reporting

Use Purchase Requisition Report and other MM reports

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19

SCM APO Production Planning and Scheduling

bull Plans APO-relevant materials APO resources and PPM or PDS

bull Master Production Planning using APO SNP

Uses same data as APO SNP Rough-Cut Planning

Plans across locations using SNP data view with daily and

weekly buckets over shorter horizon

Evaluate results in product-based dailyweekly data view andSNP alerts

bull Detailed Production Planning using APO PPDS

Use multi-step background job to create planned orders andpurchase requisitions

Evaluate results using the Product View Product Overview and

PPDS alerts

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 16: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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15

SAP ERP Stock Requirements List Transaction (MD04)bull Displays requirements and receipts

bull Starting inventory

bull Branch to inventory information

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16

SAP ERP mdash Capacity Requirement Planning

(CRP)

bull Capacity leveling is a two-step process

1 Capacity evaluation (overload vs under load)

2 Manual dispatch to the work centers or the resources

Capacity load

100

BACKWARD FORWARD

Time

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17

SAP ERP Dispatching Screen

bull Planning Table

bull Manual Order Dispatching ndash assign work center

Ordersavailable to

dispatch

Workcenters -

Availablecapacity Manually place

order on wcwith available

capacity

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18

SAP ERP Production Planning and Schedulingbull Capacity Planning using SAP PP Capacity Evaluation

Review capacity load for single plant work centers in weekly buckets

Drill down to individual plannedproduction ordersbull Detailed Scheduling using SAP PP Capacity Leveling

Dispatch unscheduled operations from the order pool in desired

sequence

Reschedule dispatched operations using drag amp drop or return

operations to the order pool and re-dispatch

bull Production Schedule Reporting

Use Order Information System or custom reportsbull Procurement Reporting

Use Purchase Requisition Report and other MM reports

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19

SCM APO Production Planning and Scheduling

bull Plans APO-relevant materials APO resources and PPM or PDS

bull Master Production Planning using APO SNP

Uses same data as APO SNP Rough-Cut Planning

Plans across locations using SNP data view with daily and

weekly buckets over shorter horizon

Evaluate results in product-based dailyweekly data view andSNP alerts

bull Detailed Production Planning using APO PPDS

Use multi-step background job to create planned orders andpurchase requisitions

Evaluate results using the Product View Product Overview and

PPDS alerts

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 17: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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16

SAP ERP mdash Capacity Requirement Planning

(CRP)

bull Capacity leveling is a two-step process

1 Capacity evaluation (overload vs under load)

2 Manual dispatch to the work centers or the resources

Capacity load

100

BACKWARD FORWARD

Time

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17

SAP ERP Dispatching Screen

bull Planning Table

bull Manual Order Dispatching ndash assign work center

Ordersavailable to

dispatch

Workcenters -

Availablecapacity Manually place

order on wcwith available

capacity

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18

SAP ERP Production Planning and Schedulingbull Capacity Planning using SAP PP Capacity Evaluation

Review capacity load for single plant work centers in weekly buckets

Drill down to individual plannedproduction ordersbull Detailed Scheduling using SAP PP Capacity Leveling

Dispatch unscheduled operations from the order pool in desired

sequence

Reschedule dispatched operations using drag amp drop or return

operations to the order pool and re-dispatch

bull Production Schedule Reporting

Use Order Information System or custom reportsbull Procurement Reporting

Use Purchase Requisition Report and other MM reports

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19

SCM APO Production Planning and Scheduling

bull Plans APO-relevant materials APO resources and PPM or PDS

bull Master Production Planning using APO SNP

Uses same data as APO SNP Rough-Cut Planning

Plans across locations using SNP data view with daily and

weekly buckets over shorter horizon

Evaluate results in product-based dailyweekly data view andSNP alerts

bull Detailed Production Planning using APO PPDS

Use multi-step background job to create planned orders andpurchase requisitions

Evaluate results using the Product View Product Overview and

PPDS alerts

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 18: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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17

SAP ERP Dispatching Screen

bull Planning Table

bull Manual Order Dispatching ndash assign work center

Ordersavailable to

dispatch

Workcenters -

Availablecapacity Manually place

order on wcwith available

capacity

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18

SAP ERP Production Planning and Schedulingbull Capacity Planning using SAP PP Capacity Evaluation

Review capacity load for single plant work centers in weekly buckets

Drill down to individual plannedproduction ordersbull Detailed Scheduling using SAP PP Capacity Leveling

Dispatch unscheduled operations from the order pool in desired

sequence

Reschedule dispatched operations using drag amp drop or return

operations to the order pool and re-dispatch

bull Production Schedule Reporting

Use Order Information System or custom reportsbull Procurement Reporting

Use Purchase Requisition Report and other MM reports

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19

SCM APO Production Planning and Scheduling

bull Plans APO-relevant materials APO resources and PPM or PDS

bull Master Production Planning using APO SNP

Uses same data as APO SNP Rough-Cut Planning

Plans across locations using SNP data view with daily and

weekly buckets over shorter horizon

Evaluate results in product-based dailyweekly data view andSNP alerts

bull Detailed Production Planning using APO PPDS

Use multi-step background job to create planned orders andpurchase requisitions

Evaluate results using the Product View Product Overview and

PPDS alerts

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

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18

SAP ERP Production Planning and Schedulingbull Capacity Planning using SAP PP Capacity Evaluation

Review capacity load for single plant work centers in weekly buckets

Drill down to individual plannedproduction ordersbull Detailed Scheduling using SAP PP Capacity Leveling

Dispatch unscheduled operations from the order pool in desired

sequence

Reschedule dispatched operations using drag amp drop or return

operations to the order pool and re-dispatch

bull Production Schedule Reporting

Use Order Information System or custom reportsbull Procurement Reporting

Use Purchase Requisition Report and other MM reports

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19

SCM APO Production Planning and Scheduling

bull Plans APO-relevant materials APO resources and PPM or PDS

bull Master Production Planning using APO SNP

Uses same data as APO SNP Rough-Cut Planning

Plans across locations using SNP data view with daily and

weekly buckets over shorter horizon

Evaluate results in product-based dailyweekly data view andSNP alerts

bull Detailed Production Planning using APO PPDS

Use multi-step background job to create planned orders andpurchase requisitions

Evaluate results using the Product View Product Overview and

PPDS alerts

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 20: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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19

SCM APO Production Planning and Scheduling

bull Plans APO-relevant materials APO resources and PPM or PDS

bull Master Production Planning using APO SNP

Uses same data as APO SNP Rough-Cut Planning

Plans across locations using SNP data view with daily and

weekly buckets over shorter horizon

Evaluate results in product-based dailyweekly data view andSNP alerts

bull Detailed Production Planning using APO PPDS

Use multi-step background job to create planned orders andpurchase requisitions

Evaluate results using the Product View Product Overview and

PPDS alerts

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 21: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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20

SCM APO Capacity Planning

bull Capacity Planning using APO SNP

Evaluate capacity loading using resource-based daily weekly

or monthly data view for key resources across plants Optional resource hierarchies available

Capacity leveling heuristic available to resolve periods of over-

capacity (2-step approach like SAP ERP) Optimizer and Capable-to-Match (CTM) planning engines can

generate a feasible capacity constrained plan in a single

planning run

Can consider alternate sources of supply at multiple

plantslocations in your network

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 22: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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21

SAP APO Resource Planning BookSNP Capacity view

Displaysorder

quantity pertime bucket

Displaysresource

utilization pertime bucket

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

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22

SCM APO Production Planning and Scheduling

bull Capacity Planning using APO PPDS

Can plan across plants using MRP framework

Calculate cross location low-level codes

Use quotas to determine supply source

Finite Scheduling heuristics and PPDS optimizer available to

use with planning run Plans within one plant location

Evaluate capacity loading over shorter term using DS Planning

Board Resource chart or Resource Loading chart with dailyweekly and monthly timescale

Filter or highlight bottleneck resources and reschedule

operations within DS Planning Board

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 24: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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23

PPDS mdash User Interface

Product

View

DetailedScheduling Board

Alert Monitor

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3362

32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 25: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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24

APO Product View mdash Transaction RRP3

bull The Elements tab is the main planning screen

bull This screen displays all the requirements and receipts for a product similar to

SAP ERP transaction MD04 ndash stock requirements view

bull A significant capability difference is that it supports interactive changes

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 26: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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25

APO Product View mdash Interactive Heuristics

bull PPDS provides an option to run multiple different heuristics

bull Most heuristics plan receipts elements but some are designed to perform a specific

system function (ie quota create safety stock)

bull The heuristic profile defines a library of available heuristics

The MRP multi-level executes a multi-level heuristicthat plans down throughout the BOM structure

The 3 Horizon Heuristic plans according to 3 differentlot sizes Product Master for 4 months weekly for the

next 8 months and monthly for the next 12

Create Safety Stock in liveCache heuristic will createtime phased safety stock values displayed in the

product view

Example of SAP delivered planning heuristics

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 27: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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26

APO Product Planning Table

bull User settings control which charts are loaded for display

bull The resource chart displays resource utilization

bull Product view Periodic chart displays plan in time buckets

Periodicresource view

PeriodicProduct view

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3162

30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 28: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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27

APO Product Planning Table mdash Resource

Chartbull The resource chart displays resource utilization capacity

requirements in hours and resource capacity

bull This view can be changed to daily weekly and monthly bucketsbull You can also double click on a week and show all the work orders

planned on that resource during that period

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4662

45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 29: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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28

PPDS mdash Detailed Scheduling Board

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4562

44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5162

50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5362

52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5462

53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 30: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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29

APO Detailed Scheduling Planning Board

bull The planning board

Provides graphical tools to manually and automatically schedule

and sequence constrained production orders Reviews inventory level

Reviews resource utilization

Automatically creates a simsession to try out different scenarios

Can be accessed from product view or planning tablebull The planning board display is controlled by defining a work area

It is a pre-defined set of products and resources

Defines production planner planning responsibility

bull Planning board look and feel is determined by configuration settings

Overall profile DS strategy heuristic profile graphic profile hellip

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30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5562

54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 31: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3162

30

SCM APO Detailed Scheduling and Reporting

bull Detailed Scheduling using APO PPDS

Evaluate production schedule using DS Planning Board Resource

chart in hourly or daily timescale Execute manual sequencing scheduling heuristics and PPDS

optimizer to schedule and re-sequence operations

Option to save results to simulation version and evaluate using the

Plan Monitor bull Production Schedule Reporting

Multiple reports for APO-relevant materials and resources

Production Supervisors still require ECC reports listing all materialscapacities and manufacturing instructions

bull Procurement Reporting

Pass procurement proposals to ECC for reporting

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3262

31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3362

32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3462

33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3562

34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3762

36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3862

37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3962

38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5162

50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5562

54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 32: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3262

31

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO including

heuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3362

32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3462

33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3662

35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3762

36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3862

37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4162

40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

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57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 33: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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32

SAP APO PPDS mdash Key Capabilities Over

SAP ERPbull Heuristic planning

Production planning heuristic

MRP Frame work

Material constraints planning(bottom up)

Block planning

bull Detailed scheduling Scheduling heuristic

Sequence optimization (setup matrix)

bull Online Capable-to-Promise (CTP) Simulate Production scheduling in conjunction with global

Available-to-Promise (ATP) at order entry

Alert monitor

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3662

35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4562

44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5162

50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5362

52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5462

53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5562

54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 34: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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33

Foundation Heuristics

bull Stage Level Heuristic

Calculates low-level code

Parameter setting support cross-location low-level code calculation

bull MRP Framework Heuristic

Utilizes low-level code to controlplanning sequence

Can utilize product location

heuristic or maintain a default

heuristic for all products

FinalProduct

LLC=1

LLC=2

LLC=0

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34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

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35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

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httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 35: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3562

34

Standard Planning Heuristics mdash SAP Delivered

bull Over 60 standard heuristics with option to add custom logic to planning runs

Multi-level production planning

MRP Planning with material availability checking Flexible pegging of production to demand

Detailed time continuous planning to the second

bull Basis for custom heuristic configuration or custom enhancement development

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3662

35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3762

36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3862

37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3962

38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4062

39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4162

40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4262

41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4362

42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4462

43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4562

44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4662

45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5162

50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 36: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3662

35

Detailed Scheduling mdash Heuristics Examples

bull Detailed scheduling heuristics help manage the work to schedule

production

Run heuristics interactively or from planning run Schedule Sequence ndash move orders according to a specified criteria

Remove backlog ndash take all orders in the past to the current date for

rescheduling

Schedule Sequence Manually ndash a manual sequencing table displaysall the orders and drag and drop them in the right sequence

Bottom up ndash Uses order pegging to reschedule dependent

requirements based on schedule sequence of lower level receipt

element

Top down ndash Uses order pegging to schedule lower-level receipt

elements based on higher-level planned order dependent

requirements

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3762

36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3862

37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3962

38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4162

40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4362

42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4462

43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4562

44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4662

45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4762

46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4862

47

Alert Monitor

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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48

APO PPDS Evaluation mdash Resource Load

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5062

49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5162

50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5362

52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5462

53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

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58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

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59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

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60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

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61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 37: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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36

SAP APO PPDS Scheduling Heuristic

bull The active strategy profile controls the scheduling mode

(finiteinfinite) and scheduling direction (backwardsforwards)

Scheduling

Heuristic

Infinite Planning

Scheduling result when using a strategyprofile maintained with a finite

scheduling mode and forward direction

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

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44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4762

46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 38: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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37

SAP APO PPDS mdash Block Planning

bull Blocks are used to schedule capacity on bottleneck resources

by product groups specified by characteristics

bull Blocks are defined based on the characteristics of productsand resources

bull Actual duration is calculated based on the Production Process

Models (PPMs) or Product Data Structure (PDS)

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 3962

38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4162

40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4362

42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4462

43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4562

44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4662

45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4762

46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5162

50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

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52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

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53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

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54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

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56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 39: SAPinsiderSCM2013CampbellSaperpversussapapofinal

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38

Characteristics mdash Dependent Planning (CDP)

bull Characteristic values are passed from the sales order to the

planned order for planning andor scheduling

bull Components can be selected using characteristics from materialrequirements

Sales

Orders

FinishedMaterial

Resource 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983089 983111983137983157983143983141 983089983096 983111983137983157983143983141 983090983088 983111983137983157983143983141 983090983089 983111983137983157983143983141

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

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40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

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42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

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43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4562

44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

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47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5162

50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5362

52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5462

53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5562

54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 40: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4062

39

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

Objective Function = Minimum

Optimization Change of datessequences and resource

assignment with regard to the following criteria

SAP APO PPDS mdash Optimization Concept

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4162

40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4262

41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4362

42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4462

43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4562

44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4662

45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4762

46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4862

47

Alert Monitor

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48

APO PPDS Evaluation mdash Resource Load

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49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5162

50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5362

52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5462

53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5562

54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 41: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4162

40

Sequence Optimization Using PPDS Optimizer

Setup Costs and

TimeDue Date

Violation

Setup Matrix

Resource Capacity

Receipts

Sales Orders

Time

Lead Time

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4262

41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4362

42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4462

43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4562

44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4662

45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4762

46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4862

47

Alert Monitor

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4962

48

APO PPDS Evaluation mdash Resource Load

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5062

49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5162

50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5362

52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5462

53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5562

54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 42: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

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41

User-Defined HeuristicsHeuristic Framework

Prod Line1 10 10 10 10 10

Prod Line2 10 10 10 10 10

Prod Line3 10 10 10 10 10 10 10 10 10 10

Prod Line1 10 40

Prod Line2 30 20

Prod Line3 20 30 10 10 10 10 10

User-defined

heuristics

for

merging

Planned Orders

Product A

Product B

Sliver order challenge After Finite Planning (Optimization or Schedule Heuristic Run) small

orders of the same product are grouped together

After Merging using custom

heuristic

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4362

42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4462

43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4562

44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4662

45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4762

46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4862

47

Alert Monitor

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4962

48

APO PPDS Evaluation mdash Resource Load

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5062

49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5162

50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5362

52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5462

53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5562

54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 43: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4362

42

Merging

Heuristic

Squeeze

Heuristic

After Merging there are

gaps between orders

AfterOptimization

Forward Scheduling with close gap

scheduling mode to remove gaps

Finite Scheduling mdash Multiple Steps

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4462

43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4562

44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4662

45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4762

46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4862

47

Alert Monitor

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4962

48

APO PPDS Evaluation mdash Resource Load

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5062

49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5162

50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5362

52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5462

53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5562

54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 44: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4462

43

Planning Run Steps mdash Real-World Scenario

bull Sequential steps with a

user-defined selection of

Products

Locations

Resources

Planners

bull

Planning can be carried outas a

Background job

Interactive session with

multiple selections

Simulation version

Processing Steps Selection Parameter

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4562

44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4662

45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4762

46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4862

47

Alert Monitor

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4962

48

APO PPDS Evaluation mdash Resource Load

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5062

49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5162

50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5362

52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5462

53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5562

54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 45: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4562

44

PPDS mdash Capable-to-Promise

bull ATP check during sales

order processing

Capable-to-Promiseinvokes Production

Planning

bull Multi-level check

At the end-item andcomponent level

bull Generation of new

planned orderspurchase

requisitions possible Checks available

resources and raw

materials

Sales order

Planned ordersPlanned orders

SAP ERP SAP APO

SDSD ATPATPATP request

Production Planning

Detailed Scheduling

Production Planning

Detailed Scheduling

No ATP Make

Planned

orders

MRP

Confirmation

Update time series

Simulation Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4662

45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4762

46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4862

47

Alert Monitor

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4962

48

APO PPDS Evaluation mdash Resource Load

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5062

49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5162

50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5362

52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5462

53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5562

54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 46: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4662

45

Alert Monitor

bull The alert monitor configuration contains all the settings that can

be manipulated to provide manageable and informative alerts

This section contains thetime profile in which you

request the system to lookfor alerts

This section contains the

actual alert types that youcan select

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4762

46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4862

47

Alert Monitor

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4962

48

APO PPDS Evaluation mdash Resource Load

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5062

49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5162

50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5362

52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5462

53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5562

54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 47: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4762

46

Alert Monitor mdash Display

bull The alerts can be generated and displayed according to user preferences

bull Each alert comes with thresholds level that you can set

bull There are also three tiers of alerts Informational warning and error alert

definitions for each alert

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4862

47

Alert Monitor

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4962

48

APO PPDS Evaluation mdash Resource Load

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5062

49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5162

50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5362

52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5462

53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5562

54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 48: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4862

47

Alert Monitor

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4962

48

APO PPDS Evaluation mdash Resource Load

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5062

49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5162

50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5362

52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5462

53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5562

54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 49: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4962

48

APO PPDS Evaluation mdash Resource Load

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5062

49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5162

50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5362

52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5462

53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5562

54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 50: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5062

49

Exception alerts

o Alert monitor configuration to support exception planning

o Maintain PPDS alert set (SS violation late order ordershortage)

CIF ndash operational functionality

o Setup Master data integration models

o Setup Transaction data integration models

o APOECC tools to correct a CIF error

Planning heuristic scope

o Low-level code

o MRP frame work ndash parallel planning and alternate heuristic

o Standard lot size planning ndash utilize product specific lot size ruleto determine production run size

o Planning in 3 horizons ndash define planning horizons and variable

lot size rules for near term midterm and long term planning

Scheduling heuristic scope

o Drag amp drop graphical sequencing

o Manual sequencing ndash determine production sequence in aspread sheet like format

o Automatic sequencing ndash sequence by location product

attributes or setup groupo Set planning horizon in PPDS planning board ndash define planning

period subset within planning board time horizon

Pre-requisite functionalityo Demand plan placed on plant ndash can be APO

or ECC

PPDS ndash Display and Understand Results

o Planning board ndash configure chart display to

utilize color to identify planned ordersequence Maintain planned order text tocommunicate plant specific information

o Configure chart display to show plannedorder sequence on resource inventory chartand product plan

o Product view ndash Maintain customer specificdisplay settings

PPDS Optimizer

o PPDS optimizer creates capacity constrained schedule acrossBOM level driven by planned orders scheduled on bottle neckresources

o Setup matrix definition defines preferred scheduling sequence

PPDS Scope mdash Planning and Scheduling

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5162

50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5362

52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5462

53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5562

54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 51: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5162

50

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5362

52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5462

53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5562

54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 52: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5262

51

Set Up the Core Interface (CIF)

bull Master data and transaction data tightly integrated to SAP ERP

bull ldquoCore Interfacerdquo delivered and supported by SAP

bull ldquoliveCacherdquo (RAM based) planning for performance

SAP ERPAPO

CIFData

Transfer

Master Data

TransactionData

live Cache

ERP t APO Pl i D t Fl S t

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5362

52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5462

53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5562

54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 53: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5362

52

ERP to APO Planning Data Flow mdash System

ArchitectureR3 APOSAP ERP SAP APO

DP

Master Data

Transaction Data

SAP NetWeaver reg BW

Historical

Transactional

Data

ODS

SAP APO-SAP ERP

Conceptual

Design

Archiving and Reporting

Transactional Data

C

I

F

Forecast

Alerts

SNP

PPDS

Forecast

Replenishment

plan

Master Data

Transaction Data

Plant

Material

Work center

Production

Version

Location

Product

Resource

PPM PDS

Planned Order

Sales Order

Purchase Ord

Manufacturing

Order

Planned Order

Sales Order

Purchase Ord

Manufacturing

order

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5462

53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5562

54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 54: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5462

53

983123983105983120 983109983122983120 983105983120983119

983117983137983156983141983154983145983137983148 983117983137983155983156983141983154 983120983154983151983140983157983139983156 983117983137983155983156983141983154

983120983148983137983150983156983155 983116983151983139983137983156983145983151983150983155

983127983151983154983147 983107983141983150983156983141983154983155

983107983137983152983137983139983145983156983161

983106983145983148983148 983151983142 983117983137983156983141983154983145983137983148

983122983151983157983156983145983150983143 983087 983120983126

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983123983152983141983139983145983137983148 983120983154983151983139983157983154983141983149983141983150983156 983115983141983161

983122983141983155983151983157983154983139983141983155

983120983154983151983140983157983139983156983145983151983150 983108983137983156983137

983123983156983154983157983139983156983157983154983141

983107983148983137983155983155983141983155 983087

983107983144983137983154983137983139983156983141983154983145983155983156983145983139983155

983124983154983137983150983155983152983151983154983156983137983156983145983151983150 983116983137983150983141983155983140983141983156983141983154983149983145983150983141983155

983120983157983154983139983144983137983155983141 983113983150983142983151 983122983141983139983151983154983140983155 983120983154983151983139983157983154983141983149983141983150983156

983122983141983148983137983156983145983151983150983155983144983145983152983155983123983139983144983141983140983157983148983145983150983143 983105983143983154983141983141983149983141983150983156983155

SAP ERP and APO Master Data Objects

bull SAP ERP data

elements are

transferred into APOand combined with

other data elements to

form the Planning

master data

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5562

54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 55: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5562

54

Core Interface mdash Integration Model Design

bull Integration model dependency

Several integration models are required

There is a prerequisite sequence Separate models for master data and transaction data

IntegrationModel

Plant

IntegrationModel

Resource

IntegrationModel

Stock

Integration

ModelProd Orders

IntegrationModel

Planned Orders

IntegrationModel

Materials

IntegrationModel

PPM (PDS)

IntegrationModel

GoodsMovement

IntegrationModel

STO

IntegrationModel

Sales Orders

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 56: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5662

55

Process Integration

OLTP

Master Data

Production

PlanningSales Order

CIF

Forecast

Planned Order Planned Order

System CreatesManufacturing

Order

System CreatesManufacturing

Order

Detailed

Scheduling

Order Release

Order isUpdated

TECO the

Order

Order is

Deleted

Production

Execution

Master Data

Sales Order Net Requirement

Calculation

Demand

Planning

Stock Stock

Goods Issue

Confirmation

Goods Receipt

Optimization

andSequencing

Setup Matrix

SAP ERP SAP SCM

When to Implement APO PPDS Instead of

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 57: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5762

56

When to Implement APO PPDS Instead of

ERP-PPbull Clients with complex sequencing rules implement PPDS

Automatically create sequenced constrained production schedule

Along with Optimization to minimize change-overs PPDS offers step-by-step planning approach with multiple heuristics

Possible to do ldquoWhat-Ifrdquo analysis before execution

Can quickly and easily re-plan when major production issues occur

bull In the case of ldquoNo Supplyrdquo Capable-to-Promise (CTP) provides bettercustomer service

CTP offers real-time visibility of shop floor capacity

Global ATP and PPDS are prerequisite for CTP

bull To standardize scheduling tools and approach across all plants

Manual scheduling tools in PPDS are superior to ERP-PP

Simplify planning and scheduling tasks and provide proactive alerts

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 58: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5862

57

What Wersquoll Cover hellip

bull Reviewing SAP production planning options offered in SAP ERP

and SAP Advanced Planning amp Optimization (SAP APO)

bull Learning how advanced capabilities differ from materialrequirements planning (MRP) and capacity requirements planning

(CRP) functionality in SAP ERP

bull Examining the latest production planning and detailed scheduling

(PPDS) features and functions delivered with SAP APO includingheuristics optimization and block planning methods

bull Identifying the prerequisites for migrating from production

planning functionality in SAP ERP to PPDSbull Wrap-up

7 K P i t t T k H

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 59: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 5962

58

7 Key Points to Take Home

bull SAP ERP PP and MM functionality is available for MPS and MRP

planning and manual capacity leveling

bull SAP PP is enhanced with multiple advanced planning engines inSAP APO

bull APO Supply Network Planning provides decision support for

sourcing inventory distribution and production in a multi-plant

network

bull PPDS provides flexible planning runs for multiple industry

scenarios with Capable-to-Promise integration to gATP

bull The detailed shop floor scheduling tools available through SAPAPO PPDS include manual graphical semi automated

automated scheduling and optimization support

7 K P i t t T k H ( t )

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 60: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6062

59

7 Key Points to Take Home (cont)

bull The Core Interface provides seamless integration in real time

between SAP ERP and APO

bull An integrated Alert Monitor supports powerful exception-basedplanning to focus planners on critical issues

Wh t Fi d M I f ti

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 61: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6162

60

Where to Find More Information

bull For a more detailed examination of production planning

functionality from SAP join speaker Matt Campbell at

Logistics and SCM 2015 in Las Vegas March 30-April 1where he will be presenting three sessions including an

updated presentation on SAP ERP vs SAP APO

Disclaimer

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP

Page 62: SAPinsiderSCM2013CampbellSaperpversussapapofinal

7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal

httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 6262

61

Disclaimer

SAP R3 mySAP mySAPcom SAP NetWeaver reg Duetreg PartnerEdge and other SAP products and services mentioned herein as well as their

respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world All other product and

service names mentioned are the trademarks of their respective companies Wellesley Information Services is neither owned nor controlled by SAP