SAPinsiderSCM2013CampbellSaperpversussapapofinal
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Transcript of SAPinsiderSCM2013CampbellSaperpversussapapofinal
7172019 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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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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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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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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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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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
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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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
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
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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
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
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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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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
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
7172019 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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
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
7172019 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
7172019 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
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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
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
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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
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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
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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
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 2062
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
7172019 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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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23
PPDS mdash User Interface
Product
View
DetailedScheduling Board
Alert Monitor
7172019 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
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
7172019 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
7172019 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
7172019 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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
7172019 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
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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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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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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 762
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 962
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 1062
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 1162
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 1362
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 1462
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 1562
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
7172019 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
7172019 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
7172019 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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 1962
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 2062
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 2162
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
7172019 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
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
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
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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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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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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
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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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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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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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
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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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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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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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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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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
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
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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
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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
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
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
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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
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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
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
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
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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
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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
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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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23
PPDS mdash User Interface
Product
View
DetailedScheduling Board
Alert Monitor
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 2562
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
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 2662
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
7172019 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
7172019 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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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28
PPDS mdash Detailed Scheduling Board
7172019 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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
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
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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
7172019 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
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
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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
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
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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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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
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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
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
7172019 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
7172019 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
7172019 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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 1962
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
7172019 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
7172019 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
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
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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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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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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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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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 )
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
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
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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 1162
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 1362
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
7172019 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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 1962
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 2062
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
7172019 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
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
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
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
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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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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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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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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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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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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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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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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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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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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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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
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
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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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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
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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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
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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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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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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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
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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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
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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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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
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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
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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
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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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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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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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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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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
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
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
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
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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
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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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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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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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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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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
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
7172019 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
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
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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
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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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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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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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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
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
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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
7172019 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
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
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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
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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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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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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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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
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
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
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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
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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
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
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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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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
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
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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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
7172019 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
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
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
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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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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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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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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
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
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
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
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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
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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
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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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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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
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
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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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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
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
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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
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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
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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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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
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
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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
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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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
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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
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
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
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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
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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
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
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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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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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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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
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
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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
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
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
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
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
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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
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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
7172019 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
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
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
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
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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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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
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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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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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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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
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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
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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
7172019 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
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
7172019 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
7172019 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
7172019 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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
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
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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
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
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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
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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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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
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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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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 2662
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
7172019 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
7172019 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
7172019 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
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
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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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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
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
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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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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
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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 2762
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
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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
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
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
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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
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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
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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
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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
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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
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
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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
7172019 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
7172019 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
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
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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
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
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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
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
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
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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
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
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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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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
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
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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
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
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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
7172019 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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
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
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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
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
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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
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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
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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
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
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
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
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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48
APO PPDS Evaluation mdash Resource Load
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
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
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
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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
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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
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
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
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
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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
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
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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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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
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
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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
7172019 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
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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
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
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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
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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
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
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
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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
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
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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
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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
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
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
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
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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
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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
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
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
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
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
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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
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
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
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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
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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
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
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
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
httpslidepdfcomreaderfullsapinsiderscm2013campbellsaperpversussapapofinal 4862
47
Alert Monitor
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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48
APO PPDS Evaluation mdash Resource Load
7172019 SAPinsiderSCM2013CampbellSaperpversussapapofinal
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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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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