OVERVIEW of Planing in APO

Copyright
Copyright 2001 SAP AG. All rights reserved. No part of this publication may be reproducedor transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. All rights reserved.
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AP010
Preface-1
SAP Advanced Planner and Optimizer (APO)

Level 2 SAP R/3
LO050 5 days
Level 2 SAP APO
Level 3 SAP APO

AP210 5 days Demand Planning
PP - Planning and Execution for Discrete and Repetitive Manufacturing
AP010
2 days
AP215
3 days
SAP APO Overview AP205 2 days
Supply Network Planning AP220 3 days
Integration Master Data
Production Planning/ Detailed Scheduling AP230 2 days
LO060
5 days BC555 2 days live Cache Administration
PP-PI Process Manufacturing
Global ATP
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?? The
level 2 course AP010, the first in the series of SAP Advanced Planner and Optimizer courses, provides an overview of the individual SAP APO components and is a prerequisite for all of the level 3 SAP APO courses. level 3 courses build on the knowledge gained during AP010 and broaden your working knowledge of the individual SAP APO components. The five level 3 courses give detailed information on the following areas: Demand Planning, Integration, Supply Network Planning, Production Planning and Detailed Scheduling, and Global Availability Check. System administrators can also attend course BC555 liveCache Administration, which is listed in the Basis Administation Training curriculum.
?? The
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AP010
Preface-2
Course Prerequisites
Prerequisites
? None
Recommended
? General understanding of supply chain concepts
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AP010
Preface-3
Target group
Target group
? Project team members involved in the implementation of APO (Advanced Planner and Optimizer) in their company.
Duration
? 2 days
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Notes to the user

?? The training materials are
not intended as self-study programs. They complement the course instructor's explanations. There is space for you to write down additional information on each page. examples that are done during the course. Participants can also use these examples to refresh or extend their knowledge after the course.
?? There may not be enough time in the course to do all of the exercises. The exercises are additional
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AP010
Preface-4
Company Profile: Precision Pump Company Precision Pump Company

? The Precision Pump Company was launched in 1971 and is the market leader, selling a large variety of high-tech standard pumps. It has been listed in the New York stock index Nasdaq 100 since 1999.
Products
? In the product catalog are turbomolecular, centrifugal, rotation and membrane pumps (for the manufacture of ultrahigh vacuums, for example).
Customers
? From the electronics industry, semiconductor industries, chemical technology, pharmaceutical technology, and process technology up to and including vehicle manufacturers, and universities.
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?? The
Precision Pump Company was launched in 1971 and is the market leader, selling a large variety of high-tech standard pumps. In the product catalog are turbomolecular, centrifugal, rotation and membrane pumps. Its customers come from the electronics industry, semiconductor industries, chemical technology, pharmaceutical technology and process technology up to and including vehicle manufacturers, and universities. The company recently became ISO certified and has been listed in the New York share index Nasdaq 100 since 1999. ? ? In the rapidly growing business area of turbomolecular pumps in particular, the company has shown a clear rise in revenue over the past business year: in the semiconductor industries countless steps, from wafer manufacture, to the final chip, can only be made under high vacuum conditions. In this area, there has to be ultimate pressure of < 10-10 mbar (i.e. ultrahigh vacuum). ? ? During the current fiscal year, the company is planning to enter the booming DVD growth market. DVDs are a form of rewritable optical memory media. They are distinguished from the CD by their large memory capacity. Coating equipment needed to create these rewritable DVDs also uses vacuum technology. ? ? Via intensive "co-engineering" with manufacturers, Precision Pump Company has optimized a large number of products to match these special requirements.
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AP010
Preface-5
Plants and Distribution Centers
2500 DC Rotterdam 3000 New York 1000 Hamburg Hamburg (main plant plant and and company company headquarters) 2400 DC Milan
3800 Denver Denver
2300 Barcelona
Plant
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DC
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AP010
Preface-6
BOM P-102
Pump Precision 102
P-102
(FERT, T-F2##) (1000, 0, _ )
Item 0010
Casing
0020
Fly wheel
0030
Shaft
0040
Pressure cover
0050
Document
0060
Screw
100-100
(HALB, T-B1##) (1000, 10, 2 )
102-200
(HALB, T-B?##) (1000, 10, 2 )
100- 300 (HALB, T-B3##) (1000, 0, _ )
100-400
(HALB, T-B4##) (1000, 10, 2 )
P-100
(T-F1##) DRW, 000, 00
100-130
(ROH, 100-130) (1000, 10007, 2 )
Item 0010
Slug
0020
Flat gasket
0030
Screw
0010
Slug
0010
Slug
0010
Slug
100-110
(ROH, T-T1##) (1000, 1000, 2 ) 1003 Gusswerke (5300000866)
100-120
(ROH, T-T2##) (1000, 1000, 2 ) 1003 Gusswerke (5300000867) 1006 Blacks (5300000720) 1011 Kugelmeier (5300001081)
100-130
(ROH, T-T3##) (1000, 1000, 2 ) 1002 M ller (5300000790) 1022 Max Wholesale (5300000721)
100-210
(ROH, T-T0##) (1000, 1000, 2 ) 1003 Gusswerke (?) 1011 Kugelmeier (5300001106)
100-310
100-410
SNP relevant
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Only R/3
?? This
slide shows the R/3 BOM for the product P-102 (T-F2##). This BOM was transferred via CIF as a PP/DS BOM with the screw 100-130 only being planned in R/3. An SNP BOM was then generated from the PP/DS BOM. During automatic conversion it was defined that only the products P-102, 100-100, 100-110, 100-300 and 100-310 are SNP relevant. ? ? Legend: (Demo material number for SD, consulting) (training material type, training material number (xx = 00 - 20)) (plant, stock, single/collective requirements indicator)
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AP010
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APO Overview
Contents:
? Introduction to Supply Chain ? Overview of APO Planning Applications
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AP010
1-1
Course Goals
This course will prepare you to: ? List the fundamental planning scenarios of the Advanced Planner and Optimizer (APO) ? Explain the functions and interplay of the individual APO components ? Describe the integration with the execution system and information systems
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Unit Objectives
At the conclusion of this course, you will be able to ? Explain the concepts of Supply Chain Management ? List the advantages of APO ? Summarize the functions of the planning applications in APO ? Explain the interplay of the individual planning applications
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Course Content
Preface Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Course Overview Integration and Technology Modelling and Evaluation in APO Demand Planning Supply Network Planning Unit 9 Unit 10 Unit 6 Unit 7 Unit 8 Production Planning / Detailed Scheduling Transportation Planning / Vehicle Scheduling Global Available-to-Promise APO SCM Implementation Conclusion
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Course Overview Diagram
1 1 1 Course Overview 2 2 Integration and Technology 3 Modelling and Evaluation in APO

4 Demand Planning 5 5 Planning
Supply Network Production Planning/Detailed
6 Scheduling
7 Planning/Vehicle Scheduling 8 8 Global Available-to-Promise 9 9 Conclusion
Transportation
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AP010
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Business Scenario
? Precision Pump company would like to improve management of its supply chain, in order to recognize bottlenecks earlier, improve usage of resources and to reduce costs. ? Reduced lead times and the guarantee of material and resource availability improve Pump Precision's customer service.
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The Supply Chain: From Supplier to Consumer
Information flow
Transfer
Transfer
Transfer
Transfer
Supplier
Manufacturer
Distribution
Retail Outlet
Consumer
CASH FLOW
Supply Chain Optimization
Increase customer responsiveness at least cost
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?? Supply
Chain Management includes the management of materials, information, and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers. The co-ordination and integration of these flows within and across companies are critical in effective Supply Chain Management. manage the supply chain? ? ? Lower sourcing costs of finished goods and raw materials ? ? Improve customer service ? ? Dramatically lower inventory levels ? ? Leverage all resources to bring substantial benefits to a company
?? Why
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Why Have Supply Chain Management?

Innovation Companies today are being forced to adapt to changes in the marketplace in order to stay profitable.
Changing Consumer Buying Patterns More products Alternative ways to shop Collaborative Planning Sales Purchasing
Shortened Cycle Times Improved customer service Flexible reaction to service requests
More Effective Planning More accurate forecasting Feasible plans Lower inventory levels
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Increased Demand for Value-Added Programs Custom packs/displays
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Key Supply Chain Problems

? Postponement ? Bullwhip Effect
Customers Delivery time
DCs
Lead time
Plants
Suppliers
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Supply Chain
?? The
key supply chain problem is that the delivery time of products to the customer must be considerably shorter than the production or the lead time. In order to realize this and to guarantee a high delivery service, inventory and safety stock must be built up at component or finished product level in plants or distribution centers (DC). use postponement strategies to define how far the sales order links with the supply chain; in other words, where the decoupling of make-to-stock production (push strategies) (MTS), and maketo-order production (pull strategies) (MTO), takes place. bullwhip effect refers to an increase in variability of a (constant) demand pattern - due to large fluctuations at the manufacturer or the supplier - as we move along the supply chain, triggered by lot size creation. problems. It is also important that company bosses are prepared to consider making organizational changes to their companies, or at least looking into the possible benefits.
?? You
?? The
?? Implementing an APS system (Advanced Planning System) does not in itself solve supply chain
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Push
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Pull
Comparison of MRP II with APS Systems
Aggregation Level Demand Planning for anonymous demands Master Production Scheduling (MPS) MRP II Material Requirements Planning for Dependent Requirements (MRP) Lot Sizing Capacity Requirements Planning Scheduling Planning Horizon
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APO
Result: Feasible plans
?? APS ?? The
(Advanced Planning Systems) is the description of the new generation of planning systems with simultaneous quantities and capacity requirements planning. acceptances for the MRPII concept proved to be too restrictive: ? ? Material planning has highest priority ? ? Capacity requirements planning and scheduling are functions that are separate and subsequent to material planning and are executed successively ? ? Individual planning of separate products. The BOM demands are planned successively and are not linked to each other (no pegging) ? ? Evaluation and rescheduling of exception situations is feasible ? ? Cross-plant planning and distribution resource planning do not have to be reflected in the system
?? Disadvantages of the MRPII concept:
? ? The sequential planning process lasts too long; exceptions cannot be replanned quickly ? ? Constraints and capacities are planned infinitely and require the plan to be postprocessed ? ? Individual planning of separate products is not given for lot sizes and manufacture of co-products ? ? Static safety and buffer times lead to long lead times and unrealistic capacity loads
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SAP's Total Supply Chain Solution

Strategic Application Level
Customer Relationship Management (CRM)
R/3
Core Business Application Level
Finance HR
Supply Chain Solutions (APO)
Integration
Strategic Enterprise Management (SEM)
Core level
Database structure Interfaces Development tools Communication
liveCache
Electronic Commerce B2B
Logistics
Sales
Client-Server
Materials Management
Production Planning
Scalability
Business Information Warehouse (BW)
?? ?
Flexibility
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Non-R/3 Systems
Open Systems
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Advantages of APO
? High performance using liveCache technology ? Global server: integrates multiple OLTP systems ? Collaborative planning via the internet ? Simultaneous material and finite capacity requirements planning ? Cross-plant optimization of the resource load ? Sequence and setup time optimization of orders ? Transportation optimization with route planning ? Evaluation and analysis of orders ? Seamless integration between APO and R/3
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Levels of Supply Chain Management

Planning
Strategy planning
Decision of direction for the company
Supply Chain Design Network Design (ND)
planning)
Operational detailed planning (operational

planning)
Aggregated sales and demand planning Demand Planning (DP) Supply Network Planning (SNP)
Ext. proc. planning PP/DS SNP
Production planning PP/DS SNP
Delivery planning ATP, TP/VS
External procurement for example, LES, MM
Production for example, PP
Outbound delivery for example, LES, MM, SD
External procurement at customer
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Execution
??
In Supply Chain Management, there is a planning level and an execution level. Within the planning level APS systems are used (APS = Advanced Planning Systems), and at the execution level, ERP systems (ERP = Enterprise Resource Planning) are used. The planning level is divided into different planning levels depending on the meaning of the decisions made: strategic, tactical and operational. The criterion for deciding what belongs to which planning level is not primarily the planning horizon but rather the scope of the planning. Each hierarchically superior level determines the ranges of the planning levels below it. Strategic level (strategy planning): Here, comparatively unstructured and simple planning tools such as portfolio techniques (product life cycle analysis, Boston Consulting Group portfolios, McKinsey portfolios, for example) are used to make decisions about the direction of the company (such as product diversification strategies, quality strategies, cost leadership). Tactical level (strategy realization and infrastructure planning): decisions about direction are realized at this level when the company is restructured based on the strategies. Tactical planning is decisive for operational planning and execution because they form the planning environment in the company (plann ing personnel, IT systems for planning, their selection, implementation and setting parameters, planning processes) as well as the part of the company that physically executes (such as factory planning, personnel planning, transportation planning, logistically-relevant IT system for execution). This links the operational planning level and the execution level.
??
??
...
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Partner
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Customer
Tactical planning: strategy realization and infrastructure planning (plan infrastructure) Operational aggregated planning (tactical
Supply Chain Collaboration marketplace integration
Supply Chain Collaboration marketplace integration
Supplier Partner
... Operational level (operational aggregated and detailed planning): Structured, recurring planning based on tactical realization decisions such as strategies for settling sales orders and pre-planning, which are not questioned again in operational planning. Operational planning can also be long-term to bridge bottlenecks that will occur in the future, such as early planning for seasonal requirements or planning runs to determine components with longer replenishment times. Planning for further planning in the future is usually done aggregated objectively or based on time since planning data is uncertain. Aggregated planning also serves to redirect tactical planning if necessary, for example, additional shifts, additional capacity, outline agreements with suppliers. Detailed planning attempts to optimally use the logistic system within the limits set by tactical and aggregated planning and based on the most current data. Execution level: Along with the development of the product (production, stock transfer, sorting, receipt, delivery), administrative activities are also performed at the execution level. These activities are supported by execution systems, for example, when papers for production (production orders) are printed.
??
??
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APO Planning Components
Monitor
APO Product Map

Network Design Supply Network Planning
Supply Chain Cockpit
Tactical
Agg. Planning
Sales Detailed Planning Purchasing Production Planning & Detailed Scheduling Scheduling Global Available-to-Promise Distribution Planning & Deployment Transportation Planning & Vehicle Scheduling Planning
BUY
MAKE
STORE
MOVE
SELL
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?? Supply
Chain Cockpit: A graphical tool for evaluating and controlling the supply chain.
?? Network Design: Strategic
planning for analyzing, optimizing and reorganizing the supply chain. Long-term sourcing, production and distribution decisions are supported here. techniques based on aggregated sales figures.
?? Demand Planning (DP): aggregated and detailed demand planning with a variety of forecasting ?? Supply
Network Planning (SNP): Finite, cross-location, mid - to long-term production and procurement planning with simultaneous material planning and capacity scheduling. Deployment is used to plan short-term replenishment. Planning/Detailed Scheduling (PP/DS): Finite, detailed production planning. PP/DS uses simultaneous material planning and capacity scheduling, and optimization techniques to generate feasible plans that are in the optimum sequence with the optimum setup-times. Planning/Vehicle Scheduling (TP/VS): Optimizes use of transportation vehicles and selection of carriers. Generates deliveries and shipments. Available-to-Promise (ATP): Rules-based availability check that is integrated with production planning and product allocation.
?? Production
?? Transportation ?? Global
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Network Design
Strategic Supply Chain Planning
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?? Network Design
is a component used specifically for strategic planning. You can use this tool to make assignment decisions (relationships between individual locations and assignment of products to locations), as well as to make additional decisions regarding locations (location determination and location selection), taking account of demand and cost structures. Network Design can also be implemented for regular evaluation of the existing supply chain in order to discover any weaknesses and take any necessary measures. are four methods available in Network Design for planning the supply chain network. These methods optimize either geographical distances or costs, in each case taking the demand structures into account.
?? There
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APO Planning Sequence with R/3 Integration

R/3 or non-SAP system
Flexible Planning Demand Planned ind.reqmts management Sales & Sales order Distribution (SD) Production Planning (PP)
Release, Confirmations
APO
Demand Planning (DP) Planned ind.reqmts
Consumption
Sales order Supply Network Planning (SNP) Prod. Plng & Det. Schedlng (PP/DS) Planned order Conversion Production order Purchase requisition Purchase order Stock transport requisition Stock transport order Deploy -ment
Planned order Production order Purchase requisition Purchase order Stock transport requisition
Purchasing (MM)
Logistics Execution System (LES) Delivery Transfer order Execution

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Transp. Plng & Veh. Schedlng (TP/VS) Planned delivery Delivery Planned shipment / Shipment
?? In APO
Demand Planning (DP) you base forecasts on aggregated historical data from the R/3 or Business Information Warehouse (BW) system (such as sales quantities from past sales orders). You use the "Administrator Workbench" in APO to upload aggregated historical data from the R/3 or BW system. In APO Demand Planning you generate planned independent requirements (release forecast to APO Demand Planning) that are used for make-to-stock planning. If you are not yet using APO Demand Planning, it is also possible to generate planned independent requirements in the R/3 system (either manually in R/3 Demand Management, or automatically in R/3 Demand Management using data from R/3 Flexible Planning, Sales and Operation Planning (R/3 SOP), or Sales and Profit Planning (R/3 CO/PA). If you do this, the planned independent requirements are transferred to APO through the R/3 APO interface (CIF). orders and planned independent requirements form the starting point for both Supply Network Planning (SNP) and Production Planning / Detailed Scheduling (PP/DS) in APO. Existing storage location stock is also included in the planning. Here, sales orders are entered in the R/3 system (sales module) but the availability check (or ATP check - Available to Promise) is done in APO. Sales orders then consume the planned independent requirements in APO depending on the APO "requirements strategy". Supply Network Planning (SNP) you plan for the short- or mid-term horizon for the entire supply chain: you generate stock transport requisitions (for planning and stock transfer) between distribution centers and plants, and can also generate planned orders (for in-house production planning) and purchase requisitions (for external procurement planning) directly in the production plant for the longer term horizon. In Production Planning and Detailed Scheduling however, you usually generate planned orders and purchase requisitions directly in the production plant for the short term horizon.
?? Sales
?? In
...
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...
?? Transaction
data generated in APO (such as planned orders) is transferred to the R/3 system through the R/3 APO interface (CIF: Core Interface). The APO demand plan is only transferred from APO to the R/3 system as planned independent requirements through mass processing from within APO Demand Planning (however, you only need to do this if Production Planning is being done in the R/3 system rather than in APO). It is however possible to automatically transfer planned independent requirements that have been maintained in R/3, to APO through the CIF. soon as planned orders and purchase requisitions get closer to the today-line, the stock planner or buyer can collectively convert planned orders into production orders and purchase requisitions into purchase orders. You use the APO Deployment /TLB (Transport Load Builder) to convert stock transport requ isitions into stock transport orders. execution functions such as release, confirmation, material staging, or goods movement for production orders or purchase orders are performed in the R/3 system. Confirmation and other data is then transferred back to APO from the R/3 system. create planned deliveries in Transportation Planning and Vehicle Scheduling (TP/VS). In APO TP/VS different deliveries can also be grouped together into one shipment. It is then possible to convert plann ed deliveries and planned shipments into real deliveries and shipments and transfer them to the R/3. The R/3 system then actions the above (such as printing documents and managing status).
?? As
?? APO is a planning tool:
?? You
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The Demand Planning Lever Effect
Demand Planning
Supply Network Planning
Production Planning
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?? Small changes made during Demand Planning cause large changes
to be made during Production Planning. The aim of Demand Planning therefore is to create sales quantity forecasts that are as accurate as possible.
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Functions of Demand Planning
? Cross-company Demand Planning (internet) ? Consistent, detailed and consolidated plans ? Statistical and causal forecasting techniques
Retail outlet Suppliers Distribution centers
? Lifecycle planning ? Promotion planning
Production units
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?? Demand
Planning is a complex, powerful, and flexible tool that supports your company's demand planning process. User-specific planning layouts and interactive planning books not only allow you to include different departments, you can also use them to include other companies in the forecast creation process. With APO Demand Planning you can use statistical forecasting methods and advanced macro techniques to do the following: - Create forecasts from sales history, based on many different causal factors; - Test predefined, and user-defined forecast models, and forecast results; And use a consensus-based approach to consolidate the demand plans of different departments. You can use forecast overrides and promotions to add marketing intelligence and management adjustments. The seamless integration with APO Supply Network Planning supports an efficient Sales and Operations Planning (S&OP) process.
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Demand Planning Concept
Aggregated actual data
Location Product hierarchy Sold-to party Sales organization Region
Future demand forecast
? Incoming
order BW R/3 Excel Non-SAP system

? Statistical
value
? ?
forecasting forecasting
Quantities Values
? Collaborative ? Promotions
? Invoice
? ?
Quantities Values
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?? The
APO DP library of statistical forecasting and advanced macro techniques allows you to create forecasts based on sales history as well as any number of causal factors, and use a consensus -based approach to consolidate the results. intelligence and management adjustments can be added by using forecast overrides and promotions. actual data can be extracted from the R/3 system in exactly the same way as it can be imported from BW, Excel, and legacy systems.
?? Marketing
?? Aggregated
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Collaborative Planning in APO
Collaboration with Suppliers
Collaboration with Customers
Supplier ? ? ? ?
Manufacturer Product requirements Production dates Procurement Delivery dates ? ? ? ?
Customer Demand plans Promotions Stock levels Delivery dates
Supply Chain Optimization High efficiency, precise information and short lead times to improve delivery of service
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Supply Network Planning (SNP)
Screen Title
APO - Product ID Object Object 1 Object 2 Object 3 Object 4 Text Text 1 Text 2 Text 3 Text 4 Des Gra ign ph Grid Title Key Figure 1 Key Figure 2 Key Figure 3 Key Figure 4 Selection Profile Key Figure 5
Tota l W 24 W 25
APO - Product Capacity Leveling
Tota l W 27 W 28
W 26
User Selection ID Grid 2 Title Key Figure 1 Key Figure 2 Key Figure 3 Key Figure 4 Key Figure 5 Planning Book W 24 W 25 W 26 W 27 W 28
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?? SNP Planning plans the mid?? The
to long-term horizon. It creates a rough quantity-based, cross-location production and distribution plan with individual rough bills of material (BOM) and routings. SNP BOM contains critical products that are produced on bottleneck resources and products with a long replenishment lead time. ensures that the right quantity is available on the right day without critical resources being overloaded. The smallest unit used for scheduling is days.
?? SNP
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Supply Network Planning Scenario
Demand Plan
Supplier
Plant
DC
Customer
? SNP plans the material flow along the supply chain ? Mid- to long-term, finite, cross-plant planning ? Prioritization of demands; supply optimization ? Result: Feasible plans
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?? The role
of Supply Network Planning involves:
? ? Planning supply to meet demand ? ? Integrating purchasing, production, and distribution in one consistent model in the entire supply network ? ? Synchronizing activities and planning material flow along the supply chain
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Comparison of Mid- and Short-Term Planning
Sales orders
Forecasts
Sales orders
Forecasts
Production Planning/Detailed Scheduling

? PP/DS

? SNP
planned orders requisitions
planned orders
? Purchase
? Purchase requisitions ? Stock transfers
? Stock transfers
? PP/DS ? Finite,
BOM and routing detailed planning per location and setup times and order-related
? SNP
BOM and routing finite planning and procurement
? Cross-plant ? Distribution ? Quantity ? No
? Sequences
? Continuous ? Pegging
and bucket-oriented
pegging Time
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Production horizon
?? SNP
integrates purchasing, manufacturing, distribution, and transportation so that comprehensive tactical planning and sourcing decisions can be simulated and implemented on the basis of a single, global consistent model. techniques, based on constraints and penalties, to plan product flow along the supply chain. The result is optimal purchasing, production, and distribution decisions, reduced order fulfillment times and inventory levels, and improved customer service. is the link between receipts and issues along the supply chain. When an order is shifted, all dependent orders can be adjusted automatically.
?? SNP uses advanced optimization
?? Pegging
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Production Planning / Detailed Scheduling (PP/DS)
Production Planning/ Detailed Scheduling
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?? Where
Supply Network Planning (SNP) is usually used for rough mid- to long-term planning over the entire supply chain (in particular when there are several plants and distribution centers), Production Planning and Detailed Scheduling (PP/DS) is usually used for to-the-minute shortterm planning in a production plant. ? ? In Supply Network Planning (SNP) demands ar e aggregated for a specified bucket ("day" for example). It is irrelevant here whether a requirement falls within an early or a late shift, as requirements are only planned roughly here - it does not include break times either. The sequence of orders is not an SNP time consideration. Cross-plant planning, and mid - to long-term planning in the production plant however do all play an important role in Supply Network Planning. ? ? Production Planning and Detailed Scheduling however, does schedule orders to-the-minute (meaning that shifts and breaks are included here), and does include order sequences (sequencing and optimization of sequences). In the short-term horizon, these functions are highly important for the production plant.
?? As
soon as a requirement (such as a sales order or planned independent requirement) falls within a specific horizon, it is no longer planned in the SNP planning run, but instead in the production planning run of PP/DS.
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Functions of Production Planning / Detailed Scheduling (PP/DS)

? Plans production, external procurement, and stock transfer within the production plant to-theminute ? Plans simultaneous material requirements and schedules finite capacity at operation level for the short-term horizon
Resource 2 Resource 1 Resource 3 30 20 10
Customer
? Takes order sequences into account ? Optimizes machine schedules (sequences, lead times) ? Transfers the planning results to an execution system (such as the R/3 Shop Floor Control)
Time
Resource 3 Resource 2 Resource 1

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?? Production Planning and Detailed Scheduling
(PP/DS) is used mainly for short-term to-theminute planning (both for in-house production and external procurement) in the production plant. PP/DS schedules and plans all operations of an order that are relevant for planning at the different resources. PP/DS has the following functions: ? ? It generates planned orders (to plan in-house production), and purchase requisitions or scheduling agreement schedule lines (to plan external procurement) in the event of product shortage. It uses simultaneous material and capacity requirements planning to do this: You can define resources as finite resources (planning-critical resources) in the resource master. Order operations are only created at these resources if there is sufficient capacity for the order quantity on the corresponding date. When there is no available capacity, the system searches for a date on which the order operation can be carried out, taking account of the capacity situation. ? ? Takes order sequences into account: when new in-house production orders are created, the setup times in the new order can be determined automatically from the setup status of the resources (depending on the preceding order). ? ? It is possible to display the orders in graphic format (in the detailed scheduling planning board), and to sequence from there. Alternatively you can use the optimizer to execute a sequencing. ? ? Machine scheduling optimization: during planning, it is possible for orders to be generated that do not have an optimum order sequence. Therefore, you can change the sequence and resource assignments of existing orders using the optimization run.
?? PP/DS
is a planning tool. Execution functions such as confirmations and goods receipts are performed in the execution system (for example, R/3). Therefore, the planning results are transferred to the execution system.
SAP AG
AP010
1-2 8
Deployment
Deployment adjusts the stock transfers for short-term changes on both the supply and demand side (distribution detailed planning).
? Fair Share
? ?
Proportional distribution Proportional target fulfillment Quota arrangements Plant Customer DC2
Chicago
DC1
Calgary Winnipeg
? Push deployment
?
Push horizon
? SAP AG 2001
?? The deployment function in SNP determines how and when inventory and planned supplies should
be deployed to distribution centers, customers, and vendor-managed inventory (VMI) accounts. It generates optimized replenishment plans that take into account short-term changes on the supply or demand side, as well as constraints, such as transportation and storage capabilities.
?? A
variety of deployment strategies are used depending on the current situation (e.g., fair share, push deployment, pull-push deployment).
SAP AG
AP010
1-2 9
Transportation Management
APO TP/VS
(Planning)
? Is integrated with the APO components DP, SNP, PP/DS, and ATP ? Evaluates the planning in BW ? Plans for both short, and long term horizons
BW
(Monitoring)
LES
(Execution)
TP/VS, LES, and BW provide an integrated solution for transportation management within the Supply Chain
? SAP AG 2001
?? The
TP/VS component has the following functions:
? ? Transportation planning and transportation consolidation ? ? Vehicle Scheduling and route determination in a dynamic environment ? ? Transportation mode and carrier selection ? ? Multi-pick up and multi-drop functions ? ? Management by exception
?? The
APO system includes the tactical and operational planning area from the SAP Transport Management solution, which is complemented for transportation execution by the SAP component from Logistics Execution Systems (LES) .
SAP AG
AP010
1-3 0
Global Available-to-Promise (Global ATP)

Is it possible to deliver the product in the required quantity, and on the required date?
? Event-driven ? Internet capabilities ? Rules-based ATP:

? ?
Location substitution Product substitution
? Integration with PP/DS

Rules
? Product allocations ? High performance (time series)
? SAP AG 2001
?? You use
Global ATP (Available To Promise) to check product availability and capacities, to provide customers with reliable confirmation dates for their sales orders. ATP checks are triggered from the OLTP system (R/3 system, or non-SAP system) as an event (event-driven ). In the interface with APO you can specify that the ATP check is to be done in APO and not R/3. If you create a sales order in R/3, for example, the system first checks if there is enough of the requested product in stock. The system can also check if receipts (for example, production orders and planned orders) have already been planned by the requested date. functions : ? ? Rules-based ATP : When there is no availability, it is possible in AP O to set it so that the system does an ATP check for the product at another location or else substitutes that product for an alternative one (location and product substitution). ? ? Integration with PP/DS : It is also possible to set it so that when a product is not available, the sales order directly triggers production. If it triggers an order for in-house production, APO creates a planned order for the required quantity in PP/DS. ? ? Product allocations: Product allocation allows you to manage the supply of scarce products to customers, so that each customer only receives an allocated amount. ? ? Time series: Planned orders and production orders are aggregated and represented in a time series, which can be used to evaluate the incoming requests from the sales orders. This improves performance of the ATP check.
?? Global ATP has the following
SAP AG
AP010
1-3 1
Optimization Solutions
APO optimization solutions

A complete range of optimization solutions adjusted to the planning tasks
Linear programming / mixed / whole number programming Genetic algorithm constraint-based programming
Supply Network Design + Planning
Production Planning/ Detailed Scheduling
Tab. search
Transportation planning
? SAP AG 2001
?? In
APO, the following optimizers are available: optimizer for CTM, optimizer for PP/DS, optimizer for Network Design, optimizer for Sequence Planning, optimizer for Supply Network Planning, optimizer for Transportation Planning. Supply Network Planning, optimization problems are usually of the nature that they can be solved with an "exact mathematical solution procedure" (which can be solved using linear equations). For this reason, linear programming is used for optimization in Supply Network Planning. Linear programming is able to calculate an "exact solution". Production Planning and Detailed Scheduling (PP/DS) however, there are usually more complex optimization problems for which no "exact solutions" can be found. Therefore, linear programming is less suited for PP/DS. Instead, solutions are more able to approximate an "optimum or exact solution". Approximate optimization procedures are therefore more suited to be used in PP/DS (genetic algorithm/constraint-based programming). This allows the optimization system to find a suitable solution faster. different optimizers can be installed on the same server on which the APO application, the liveCache, and the database are all installed (but you can also install them on different servers). The APO application server and the optimizer are linked via a TCP/IP connection. Here you specify whether the optimizer is to be called on the APO application server or on a different server (transaction sm59).
?? In
?? In
?? The
SAP AG
AP010
1-3 2
APO Overview: Unit Summary
You are now able to

? Explain the concepts of Supply Chain Management ? List the advantages of APO ? Summarize the functions of the planning applications in APO ? Explain the interplay of the individual planning applications
? SAP AG 2001
SAP AG
AP010
1-3 3
APO Integration and Technology
Contents:
? liveCache Technology ? Integration of the Online Transaction Processing (OLTP) System and APO ? Pegging
? SAP AG 2001
SAP AG
AP010
2-1
Unit Objectives
At the conclusion of this unit, you will be able to ? Describe the advantages of liveCache Technology ? Outline the data exchange between R/3 (or other OLTP systems) and APO ? Explain the pegging tasks.
? SAP AG 2001
SAP AG
AP010
2-2
Overview Diagram (1)
1 Course Overview 2 2 2 Integration and Technology 3 Modelling and Evaluation in APO 4 Demand Planning 5 5 Supply Network Planning 6 Scheduling
Production Planning/Detailed
7 Transportation
Planning/Vehicle Scheduling
8 8 Global Available-to-Promise 9 9 Conclusion
? SAP AG 2001
SAP AG
AP010
2-3
Business Scenario
? With high performance and pegging procedures, the liveCache technology allows quick, simultaneous material and finite capacity planning. ? Pump Precision uses the R/3 as an execution system and APO for planning. The Core Interface (CIF) provides a close integration of the systems, where order data is exchanged in real-time.
? SAP AG 2001
SAP AG
AP010
2-4
APO Application Architecture
OLTP OLTP (R/3) (R/3) LIS, CO-PA HR, FI Planned Indep. Requirements Customer orders Production Scheduling Inventory management Transportation processing
Global ATP
APO
Supply Chain Cockpit Demand Planning
Information Warehouse Warehouse (SAP BW) Historical data
PP / DS
Deployment
Key Performance Key figures (KPIs)
Transportation Planning
? SAP AG 2001
?? Aggregated
actual data can be transferred to APO from OLTP, BW (Business Information Warehouse), Excel, and Legacy systems, and saved in InfoCubes. This data is the basis for forecasting. The demand plan is created as a result of the forecast. release the demand plan to Production Planning, which creates planned independent requirements for Supply Network Planning (SNP), and PP/DS. You can also transfer the demand plan to the operating system (OLTP) as planned independent requirements. seamless integration with Supply Network Planning (SNP), and PP/DS supports an efficient S&OP process.
?? You
?? The
SAP AG
AP010
2-5
What is live Cache ?

? Main objective = higher performance:
?
Performance-critical routines (in C++) are running in address space of the liveCache management system => no heavy data transfer between application and data storage
Application
> 1 ms
Application
< 10 s
Data Storage
Data Storage
liveCache
? SAP AG 2001
?? Access
to data in the liveCache is approximately 100 times faster than it is in a database (10 microseconds as opposed to one millisecond). of complex data structures (nets, trees). The typical liveCache data structure is NOT a relational data table. node access (grid access points, navigation). access is possible (read & write).
?? Display ?? Easy
?? Simultaneous
?? Fast data recovery. ?? Little
navigation needed within the networks. run where the data is stored advantages for the user:
?? Applications ?? Further
? ? "Shared data" for application and the application server (independent of the R/3 OLTP database). ? ? Higher performanc e (performance-critical routines run the stored operations and problem-specific data modeling is therefore supported in the same address space as it is in data management. This is more efficient than relational data modeling). ? ? Scalability via a number of processors. ? ? Scalability of the liveCache, because of an interlaced architecture.
?? Higher
data security in a simple C program that saves all data. In case of a program termination (downtime), data will not be lost.
SAP AG
AP010
2-6
liveCache Technology
Application Server
ABAP-Application Program exec sql. Execute procedure "Schedule_order" (OUT : var1, IN : table1, IN : var2) endexec.
? Avoid disk I/O through shared, buffered data

? ?
Hold all application data in memory Save large datasets
? Optimized data structures

?
Support application-specific data structures (e.g. store BOM as a tree rather than a relational table)
? Built-in business functionality

?
Run application logic where the data is stored Aggregate OLTP database information in main memory
Optimized method coding Schedule_order
Optimized data structures
live liveCache
? SAP AG 2001
?? A liveCache ?? During
management system is in a non-ABAP environment.
the first liveCache upload ( bring up ), mass data (master data and transaction data) from the connected R/3 and legacy system(s) is either sent to the APO System, reduced (filter) or transformed into an APO presentation. Some of the data is then also sent to the liveCache . liveCache, if the OLTP system is an R/3 System. In case of non-R/3 Systems there is only one periodic upload of the changes. APO server presents changes to be sent back from APO or liveCache into an OLTP system, in a special data structure (black board). From here, the OLTP system collects the relevant changes in regular intervals.
?? Changes from an OLTP are transmitted into APO in real-time and therefore into
?? The
SAP AG
AP010
2-7
R/3 Plug-In Technology
BBP
CRM
BW
SEM
R/3 Plug-in
R/3
(from Release 3.1I)
CIF
APO
Information on R/3 Plug-in: SAPNet/R/3 Plug-in

? SAP AG 2001
?? An
R/3 interface is marked with an R/3 Plug-in to make it possible to integrate a mySAP.com component (for example, APO or BW) with one or several R/3 Systems. With R/3 Plug-ins, several mySAP.com components can be inserted at the same time. Most Plug-ins concern add-ons (R/3 standard software enhancements with additional functions). data transfer between R/3 and APO Systems is defined and controlled using the APO Core Interface (CIF). The CIF is the central interface for connecting APO to the existing R/3 System environment. components with transaction and master data. In this way, APO CIF does not only provide the SAP APO System with initial data records (initial supply), it also guarantees a stepby-step supply with all the relevant data changes. Only the object data relevant for the individual planning and optimization process in APO is transferred from the complex data records into R/3. The integration between R/3 and APO is possible as of R/3 release 3.1I (for the PM/SM area and production process models, integration is possible as of 4.5B).
?? The
?? Plug-ins supply the
SAP AG
AP010
2-8
Global APO Server
APO
Company A Plant 1
APO
Company B Plant 2
liveCache
Company C
Plant Plant 3
? SAP AG 2001
?? A
multi-system environment is possible layouts of enterprises and plants are possible
?? Different
SAP AG
AP010
2-9
APO Integration (2)
SAP R/3
SD HR
BAPI BAPI
LO
NonNonR/3 R/3System System
CIF
(Core Interface)
BAPIs
SAP SAPAPO APO BAPI
? SAP AG 2001
?? The
APO Core Interface (CIF) is responsible for the data exchange between APO and R/3 Systems. The APO Core Interface is a real-time interface, linking APO with one or several R/3 Systems. the data objects needed in the data structures in APO for the different planning and optimization processes are transferred from the complex dataset of the R/3 into APO. guarantees both the initial data transfer (initial transfer) and also the transfer of data changes within APO.
?? Only
?? The APO Core Interface
?? The outbound delivery from APO CIF takes place as an R/3 Plug-in. ?? Technical
integration of SAP APO with:
? ? an R/3 environment where Core Interfaces are used ? ? a non-R/3 environment where the official standard of Business Application Programming Interfaces (BAPIs) is used.
SAP AG
AP010
2-1 0
APO Integration (3)
R/3
Sales order Planned order Production order Order ...
APO
CIF Real-time CIF
Order
Production Procurement Replenishment
live live Cache Cache
Plant, Customer,... Material master Capacity Routing and bill of material
Location Product Resource Production process model
? SAP AG 2001
?? The ?? The
planning in APO is based on its own master data that is usually transferred automatically from a R/3 System, but can also be created manually. transfer of master data from the R/3 is displayed in the corresponding master data in APO. Only the master data relevant for planning in APO is transferred (firstly in the form of an initial transfer, and then later as transfers of data changes). R/3 remains the execution system for the master data. Only the settings which cannot be transferred from the R/3 are maintained directly in APO. transaction data relevant for planning, such as warehouse stock and sales or production orders is also transferred from the R/3 into APO via the CIF interface. And vice versa, the results of the planning in APO are returned to the R/3 via CIF and executed there. This integration of transaction data takes place in real-time.
?? The
?? The
SAP AG
AP010
2-1 1
Master Data Objects of the CIF

Initial transfer
R/3
R/3 master data
Plant Customer Vendor Material master Capacity Routing and bill of material
APO
APO master data
Location Product Resource Production process model
Incremental data transfer

? SAP AG 2001
?? The
APO Core Interface concerns a real-time interface. Only the data objects needed in the data structures reconciled in the planning in APO for the particular planning and optimization processes are transferred from the complex dataset in R/3 into APO. the initial data transfer (initial transfer) and the transfer of data changes within APO take place via the APO Core Interface. master data objects in APO are not identical with those in R/3. For the master data transfer it is in fact the relevant R/3 master data that is mapped onto the corresponding planning master data in APO. that does not exist in R/3 is maintained directly in APO.
?? Both ?? The
?? The R/3 System remains the dominant system for the master data. Only specific APO master data
SAP AG
AP010
2-1 2
Transaction Data Objects of the CIF
R/3
R/3 transaction data
Orders Purchase requisitions Sales orders Planned orders Planned ind. reqmts Reservations Supplies ...
APO
Initial data transfer
APO transaction data
Order with category BF (PchOrd) AG (PurRqs) BM (SalesOrder) AI (PlOrd.) FA (FC req.) AM (PrdRes) CC (Stock) ...
Change transfer Realtime
? SAP AG 2001
?? The
initial data transfer of transaction data takes place first, via the APO Core Interface. The change transfer between R/3 and APO usually automatically follows for transaction data objects that belong to an active integration model. New transaction data or changes to existing transaction data is automatically transferred. (For transaction data of the APO component SNP, you can define in Customizing whether a real-time or periodic publication is to be performed.) transaction data objects in APO are not identical to those in R/3. All transaction data in R/3 is transferred to APO as orders that can be distinguished by ATP category. the standard system, planned independent requirements can only be transferred from the R/3 into APO. The retransfer of the planned independent requir ements that you may require if you only perform Demand Planning in APO, must be triggered from Demand Planning in APO with a specific transaction. planned orders and purchase requisitions, you can specify in APO that they are only transferred from APO to the R/3 System if the conversion indicator has been set.
?? The ?? In
?? For
SAP AG
AP010
2-1 3
Transfer of Data to APO
1. Generate integration model

Determine name and APO target system Select master and transaction data
Name Target system Sales orders Production orders Storage location stock
...
2. Activate integration model

Integration model is active
Start
Data is transferred for the first time, a continuous real-time incremental transfer of transaction data follows
? SAP AG 2001
?? You
define the integration model that controls the transfer of master and transaction data in the R/3 System. You can find the menu option Core Interface Advanced Planner and Optimizer (the CIF menu) under Logistics -> Central Functions -> Supply Chain Planning Interface. integration model distinguishes between master data and transaction data. We recommend selecting these two types of data in separate integration models and then also tra nsferring them separately. the integration model, you select the master and transaction data you want to transfer. You specify the following in the integration model: ? ?The APO target system for the data transfer ? ? The data objects you want to transfer
?? The
?? In
?? You can ?? For
delete integration models that you no longer need. Note that you must first deactivate these integration models. any transaction data that is contained in an active integration model, a continuous real-time incremental data transfer is performed between the R/3 System and APO.
SAP AG
AP010
2-1 4
liveCache Integration with R/3
BW extractors
DP
Forecast
liveCache
APO
Planned indep. requirement
Sales order
Storage location stock Intransit receipts Purchase requisition Order
CIF
Purchase requisition Stock transfer Planned order Production order
SD
MM
PP
R/3
? SAP AG 2001
?? The
historical data from Demand Planning (DP) is transferred into APO with the help of the extractors from the Business Information Warehouse (BW). can release the Demand Planning forecast to the liveCache and therefore create planned independent requirements. Alternatively, you can transfer planned independent requirements from the execution system. orders, supplies and planned independent requirements of the execution systems are transferred via the CIF interface into APO. planning results of APO, the purchase requisitions, stock transport requisitions, stock transport orders and planned independent requirements, are also distributed via the CIF interface into the execution systems. Planned orders can also create direct production orders in the OLTP system.
?? You
?? The
?? The
SAP AG
AP010
2-1 5
APO - OLTP Integration
APO
Demand Planning (DP)
OLTP
Planned independent requirements Planned orders Purchase requisitions Stock transport requisitions Planned orders Production orders Purchase requisitions Stock transport requisitions Adjustment of stock transport requisitions Grouping of stock transport orders
Supply Network Planning (SNP)
Production Planning (PP)
Detailed Scheduling (DS)
Deployment
Transport Load Builder (TLB)

? SAP AG 2001
?? This ?? You
slide shows the exchange of movement data between APO and the connected OLTP systems.
can transfer the results of Demand Planning as planned independent requirements to the OLTP systems, similar to the transfer from Flexible Planning or Sales and Operations Planning (R/3) to demand management. can transfer the SNP planning results as planned orders, purchase requisitions and stock transport requisitions to the OLTP system. can also transfer the PP/DS planning results as planned orders, purchase requisitions and stock transport requisitions to the OLTP system. If you convert SNP planned orders into PP/DS planned orders, the planned orders are adjusted in the OLTP system. You can only transfer planned orders as production orders to the OLTP system from PP/DS. and the TLB confirm the OLTP stock transport requisitions and can convert them into stock transport orders or VMI sales orders. -> Supply Chain Planning -> Supply Network Planning (SNP) -> Basic Settings -> Configure Transfer to OLTP Systems you can configure how transfer should take place.
?? You ?? You
?? Deployment
?? Via Customizing -> APO
SAP AG
AP010
2-1 6
Pegging
? The pegging network

Demand
?
assigns receipts to requirements propagates the requirements through the BOM is cross-location finds unassigned order quantities
50
Output node 50 30
50
20
Input node
Pegging
80
20
Order
? APO offers fixed and dynamic pegging
? SAP AG 2001
?? Pegging
describes the assignment of quotation and requirement. It links each input node from requirements or rec eipts with output nodes from receipts. The material flow between requirements, stock transfers, purchase requisitions, planned orders and storage location stock is therefore defined in the system. Pegging allows the bi-directional planning of components to the end product and of the end product to the components. ? ? Dynamic Pegging: The pegging relationship is re-calculated each time, with regard to quantity and date changes, when a product receipt or issue takes place. ? ? Static Pegging: All relationships are fixed. Only the user or an external program can change these relationships.
?? There are two types of pegging:
SAP AG
AP010
2-1 7
Supply Chain Pegging
Sales order
10 10 30 20 20 100 10 10 40 40 50 60 (-10)
Transfer order
30 30 50 20 50 50 50 100
Shortage
Surplus
30 (+20)
Production order
50 50 80 30 80 20 (+10) 50 50 50
Order
? SAP AG 2001
SAP AG
AP010
2-1 8
Conclusion
You are now able to

? Describe the advantages of liveCache Technology ? Outline the data exchange between R/3 (or other OLTP systems) and APO ? Explain the pegging tasks.
? SAP AG 2001
SAP AG
AP010
2-1 9
Modelling and Evaluation in APO
Contents:
? Models and version in APO ? Supply Chain Cockpit ? Supply Chain Engineer ? Alert Monitor ? Evaluations using the BW explorer
? SAP AG 2001
SAP AG
AP010
3-1
Unit Objectives
At the conclusion of this unit, you will be able to ? Explain the functions of models and versions in APO ? Describe the modelling of the Supply Chain network ? Analyze master and transactional data in the Supply Chain Cockpit ? Call alerts from the Supply Chain Cockpit ? Evaluate aggregated historical data
? SAP AG 2001
SAP AG
AP010
3-2
1 Course Overview 2 2 Integration and Technology Modelling and Evaluation 3 3 in APO 4 Demand Planning 5 5 Supply Network Planning 6 Scheduling
Production Planning/Detailed
7 Planning/Vehicle Scheduling 8 8
Global Available-to-Promise
Transportation
9 9 Conclusion
? SAP AG 2001
SAP AG
AP010
3-3
Business Scenario
? Precision Pump company uses the Supply Chain Cockpit for multi-site analysis and documentation of planning results. ? In the Alert Monitor, every planner can find his current planning problems and exception messages. ? Key Performance Indicators (KPIs) provide benchmarks for defining the goals of the company. After each planning cycle, Precision Pump company uses KPIs to analyze the performance of its supply chain.
? SAP AG AG 2001
SAP AG
AP010
3-4
Models and Planning Versions
Legacy
R/3
OLTP Master Data
APO Master Data (model independent)
Active1Model Model
PPMs Products Locations Transportation lanes
Simulation Models
Active Version 000

version dependent master data and movement data
? SAP AG 2001
Planning Version 1
Planning Version n
?? The
network model represents the supply chain and consists of individual nodes and relationships. In APO it is possible to create and maintain different versions of a model for simulation purposes. There is only one active model (000) with an active version. The active planning version is 000. supply chain network. It is modeled in the Supply Chain Engineer and contains details like locations, resources, products, transportation lanes and production process models (PPMs).
?? All APO planning functions are based on the supply chain model. The model covers the entire
?? You also have the option of creating several models, each with different versions for simulation
purposes.
?? Master
data like locations, products, resources and plans that are transferred from OLTP systems are automatically assigned to model 000. You must assign master data that you create in APO explicitly to the model.
SAP AG
AP010
3-5
APO Maintenance and Analysis Tools
Engineer
Cockpit
Alert Monitor
Information Warning Error Ignore
Modeling the Network

? SAP AG 2001
Analysis of the Planning Situation
Evaluation of the Exception Messages
?? The
Supply Chain Engineer enables you to maintain the model of your supply chain. You can use this component to create or change supply chain network models. The network model represents a supply chain and consists of individual node points and links. A model can have different planning versions. You also have the option of creating several models, each with different versions for simulation purposes. Supply Chain Engineer is a fully integrated APO component used for creating models. The model is the basis for all APO planning functions. It covers all areas of the network chain, from the supplier's supplier to the customer's customer. The relevant data objects are imported here from the source system to APO. Supply Chain Cockpit allows planners to make an integrated analysis of transactional data in the supply chain. It also allows data to be broken down into planner-specific subsets, such as by indvidual region or product line.
?? The
?? The
?? The Alert Monitor gathers messages regarding problems within your plan.
SAP AG
AP010
3-6
Work Areas
Access to frequently used objects ? Used for queries ? Serve as filters ? Configured for users
? SAP AG 2001
?? The
complete supply chain view can be unclear. You can limit th e view to the objects on which you want to concentrate when you are defining work areas. The work area is used exclusively as a filter for displaying objects in the Cockpit and Engineer. pre-defined work area is the basis for the queries which you can use to gain information about all aspects of your supply chain from the APO system. The transportation lanes in your work area are defined using the model in which you are working. the work area of the supply chain you can select: ? ? Locations (plant, DC, supplier, customer) ? ? Resources, production, storage, processing, transportation ? ? Products ? ? PPMs (production process models)
?? The
?? In
SAP AG
AP010
3-7
Objects in the Supply Chain Network
? Locations
Supplier
Plant
DC Customer Transport. MRP Stock transfer Carrier zone area point
? Transportation lanes
? SAP AG 2001
?? In
APO, a location can represent a distribution center, manufacturing plant, supplier location, a customer, a carrier, transportati on zones, MRP areas, for example. material flow between locations is modeled via transportation lanes. You map your supply chain via locations and transportation lanes. transportation zone can be used to group together customers, for example, in the form of a location hierarchy. The transportation zone is used in the TLB and in transportation planning. Carriers and stock transfer points are only used in transportation planning. An MRP area is planned in SNP like a production plant. master rec ords, resources and PPMs (production process models) are assigned to the locations. ? ? You can map production, storage, transportation and handling capacities via resources. ? ? DP, SNP and PP/DS PPMs (production process models) are available to allow you to define BOMs and routings.
?? The ?? A
?? Product
SAP AG
AP010
3-8
Supply Chain Cockpit Navigation

Cockpit controls controls Overview Overview map Planning Planning objects objects Network Network map map
Work Work areas areas
Control Control panel panel

? SAP AG 2001
Alert monitoring monitoring
Application Application toolbar toolbar
?? Use
this navigational component of the Supply Chain Cockpit to:
? ? Retain a complete overview of your supply chain model ? ? Retrieve information from the APO system through queries ? ? Measure performance with KPIs (Key Performance Indicators) ? ? Display location, product, resource, PPM and lane data ? ? Keep track of alert situations
?? The
three main business tools available from the Supply Chain Cockpit include:
? ? Queries that facilitate the planning function ? ? Key Performance Indicators that provide feedback on actual performance ? ? The Alert Monitor that provides notification of exception messages
SAP AG
AP010
3-9
Information Retrieval
Business Information Warehouse
Key Performance Indicators - Service level - Supply chain costs
Fixed Network Information

- Transportation network - Production network
Planning Results
- Production - Demand - Stock - Transportation - Capacity load
Alert Monitor
APO Applications
- Supply Network Planning - Production Planning - ATP - Demand Planning
? SAP AG 2001
APO Master Data

Products Resources Locations Transportation lanes Production process model
?? Queries ?? Key
facilitate the planning function.
Performance Indicators provide feedback on actual performance.
SAP AG
AP010
3-1 0
Purpose of Key Performance Indicators
What was the total profit made from Gel 250 delivered to customer X from DC Milan?
? SAP AG 2001
?? The
APO key performance indicators (KPIs) express abstract supply chain objectives in financial or physical units for comparative purposes. Data pertaining to the various planning and execution processes such as demand planning or product planning is collected, measured, and transformed into physical or financial information that can be used to compare results and thus measure performance. example, a KPI could tell you what percentage of your products were damaged during production. Based on that information, you could set a goal to reduce the percentage of damaged goods by 5%. After implementing the steps necessary to reach the goal, you would again launch a KPI query to check your progress.
?? For
SAP AG
AP010
3-1 1
Standard KPIs (Selection)

? Planning
? Order quantities/values ? Days' supply ? Stock levels ? Material consumption ? Resource load
? Purchasing
? Purchase order quantities ? Delivery time ? Service level ? Vendor evaluation ? Days' supply
? Production
? Lead times ? Date variances ? Scrap ? Delays
? SAP AG 2001
? Service
? Credit memos ? Deliveries ? Billing documents ? Returns
?? The
slide shows some of the standard KPIs provided by SAP. In addition, you have the option to defin e specific KPIs - tailor-made to your company - in the Business Information Warehouse and to assign them to the Supply Chain Cockpit.
SAP AG
AP010
3-1 2
Key Performance Indicators
0. Identify key performance indicators (KPIs) Measure performance using KPIs 5. Identify gaps and improve 1. APO: Plan & Optimize
4. Compare results of KPIs
3. Measure performance using KPIs
2. Execute
? SAP AG 2001
?? The
graphic above depicts the three steps to improving supply chain performance using APO KPIs:
? ? Plan and optimize in APO ? ? Execute decisions in an execution system (R/3) ? ? Benchmark in BW
?? The
KPI function allows you to track and measure your supply chain performance by retrieving information stored in the Business Information Warehouse (BW) pertaining to your business. measurement is a way to determine if your business has improved or not. use of metrics to measure performance is a complex business process that requires careful planning, analysis and a thorough knowledge of the supply chain. For more information on measuring supply chain performance, refer to the SCC1_E.doc, Appendix 1: The SCOR Model.
?? Performance ?? The
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Alert Monitor Definition
Exception Window for Details
Alert
Alert Notification
? Exceptions are calculated using macros and displayed in the Alert Monitor ? There are standard macros and the option to define your own alerts
? SAP AG 2001
?? The ?? In
role of the Alert Monitor is to inform you of exception cases that occur in your plan. Every situation that has to be adjusted in planning is an exception. Supply Network Planning you have the option to display either database or dynamic alerts. The database alerts show the planning situation as it was at the time of the planning run, while the dynamic alerts reflect the current planning situation. Alert Monitor in Supply Network Planning enables you to display and remove alerts for resources and location products. Typical alerts are: When the resource is too overloaded (over 100% utilization of capacity), when the resource is not sufficiently load ed (less than 50% utilization), backlog, shortfall in safety stock, target days' supply excess/shortfall, customer -specific alerts. retain constant control over your supply chain network because of the alerts you defined and because you have the option to send these by mail. As planner or manager you will be prepared for any problems that occur. You will be informed in time so that you can take the necessary precautions.
?? The
?? You
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Alert Monitor Integration
PP/DS PP/DS
Cockpit
DP DP
Problem resolution
Example:
SNP
APO Alert Repository
Production Planning / Detailed Scheduling Supply Network Planning
ATP
Alert Monitor
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?? The
Alert Monitor in Supply Network Planning enables you to display and remove alerts for resources and location products. Typical alerts are: When the resource is too overloaded (over 100% utilization of capacity), when the resource is not sufficiently loaded (less than 50% utilization), backlog, shortfall in safety stock, target days' supply excess/shortfall, customer -specific alerts. retain constant control over your supply chain network because of the alerts you defined and because you have the option to send these by mail. As planner or manager you will be prepared for any problems that occur. You will be informed in time so that you can take the necessary precautions. can call the Alert Monitor from the Supply Chain Cockpit, from the menu or directly from interactive planning. Right-click on the alert to go directly to the problem resolution screen.
?? You
?? You
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Alert Types
Demand Planning Supply Network Planning Production Planning/ Detailed Scheduling ATP
DP macro status alerts
Resource load (SNP) Violation of due dates Resource load (PP/DS)
ATP: Requirements not covered
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?? APO's
monitoring component comes equipped with a selection of 20 alert types ranging from product shortage to various capacity overloads. The alert types must be prioritized and assigned to the various APO applications. For example, some alerts apply only to SNP, but others can be assigned to DP and PP/DS as well. Alert Monitor differentiates between alerts in a specific planning version and alerts in general. For example, capacity overload pertains to a specific planning version while Demand Planning alerts are general. Both types of alerts, however, are displayed in the Monitor. you want to show an alert in the SCC, you can assign the alert type to the application. This ensures that the traffic lights in the monitoring slot in the control panel go on. Lights indicate that at least one alert of that priority type exists. some alert types cannot always be clearly assigned, it can happen that the same alerts may appear under more than one priority light. alert type can be assigned to any number of applications.
?? The
?? If
?? Since ?? Each
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Evaluations in APO
? Using the BW Business Explorer you can evaluate:

? ?
Order data from the liveCache Aggregated data in InfoCubes
Extraction structure RemoteCube
Planning area
live liveCache
Business Explorer
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DP InfoCube
?? You ?? It
can also evaluate data from APO using the BW frontend.
is not only the aggregated actual data from the InfoCubes that are evaluated, but also all of the order and time series objects from the liveCache. prerequisites for 'liveReporting' orders and time series are as follows: a planning area in APO; an extraction structure for the planning area; an infosource, and an SAP RemoteCube that reflects the liveCache data.
?? The
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Conclusion
You are now able to ? Explain the functions of models and versions in APO ? Describe the modelling of the Supply Chain network ? Analyze master and transactional data in the Supply Chain Cockpit ? Call alerts from the Supply Chain Cockpit ? Evaluate aggregated historical data
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Exercises
Unit: Supply Chain Cockpit
Topic: Display and Query
At the conclusion of this unit, you will be able to ?? Maintain the user settings for the Supply Chain Cockpit ?? Execute queries in the Supply Chain Cockpit and with the Business Information Explorer
Precision Pump companys supply chain planner can procure all necessary information about the products, locations and resources for which he/she is responsible via the Cockpit.
The group number ## that you need for the following exercises is on your monitor.
1-1
Open the Supply Chain Cockpit with the following entries: Planning version For model Work area 000 000 PUMP
Change to the logical view PUMP and analyze the supply chain. Which distribution centers supply the plants 1000 and 2300?
1-2
Display the global master data for the product T-F225 and the master data for the product T-F225 in the distribution center 2400 in the Supply Chain Cockpit. Query the stock/requirements list for product T-F225 at location 2400.
1-3
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1-4
Query the transportation lanes permitted for the product T-F225 .
1-5
Open your user settings profile directly from the Cockpit. Enter the SDP alert profile PUMP. Save the profile, go back to the Cockpit and refresh the alert situation. Are alerts displayed? How can you process the alerts?
1-6
Evaluate the aggregated historical data for the product T-F2##. Log on to the APO system using the Business Information Warehouse (BW) Analyzer and open the query SALES DATA for the SALES InfoCube. Find out the extent that Product T-F2##, with Sold-to party 1000, and in Sales Organization 1000, contributed to sales in the past few months.
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Solutions
Unit: Supply Chain Cockpit
Topic: Display and Query
At the conclusion of this unit, you will be able to ?? Maintain the user settings for the Supply Chain Cockpit ?? Execute queries in the Supply Chain Cockpit and with the Business Information Explorer
Precision Pump companys supply chain planner can procure all necessary information about the products, locations and resources for which he/she is responsible via the Cockpit.
The group number ## that you need for the following exercises is on your monitor.
1-1
Open the Supply Chain Cockpit with the following entries: Planning version For model Work area 000 000 PUMP
Change to the logical view PUMP and analyze the supply chain. Which distribution centers supply the plants 1000 and 2300? Supply Chain Monitoring ? Supply Chain Cockpit Enter the input data and select Use. Select the Fit to objects button on the left above the graphic to adjust the objects. Enter the logical view PUMP and select Logical view. If you want to restrict the area further, you can define the zoom area using the left mouse button. The transportation lanes show you that the plants 1000 and 2300 supply the distribution centers 2400 and 2500.
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1-2
Display the global master data for the product T-F225 and the master data for the product T-F225 in the distribution center 2400 in the Supply Chain Cockpit. Choose the Products tab Right-click on product T-F225 and display the master data for this product: Display ? Product Select the location 2400 in the graphic and the product T -F225 in the Products tab and display the location product by right-clicking on the product: Display ? Product at location
1-3
Query the stock/requirements list for product T-F225 at location 2400. Select the location 2400 on the map Select product T -F225 in the Products tab and right-click to call up the context menu: Call up planning applications ? PP/DS Stock/Requirements List Check that Product and Plant have green lights in the selection options screen and check which product is selected by clicking on the Display button Execute the query by clicking on the Execute button
1-4
Query the transportation lanes permitted for the product T-F225 . Choose T-F225 in the Products tab Right-click to call up the context menu: Query: Master data ? Transport net map
1-5
Open your user settings profile directly from the Cockpit. Enter the SDP alert profile PUMP. Save the profile, go back to the Cockpit and refresh the alert situation. Are alerts displayed? How can you process the alerts? Settings ? User profile Enter the SDP alert profile PUMP in the Alert Monitor tab. Save the profile and use the green arrow to go back to the Cockpit. Press the Refresh alerts button and the exception messages are shown in red. Double-click here to go directly to the Alert Monitor and right-click to process the alerts.
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1-6
Evaluate the aggregated historical data for the product T -F2##. Log on to the APO system using the Business Information Warehouse (BW) Analyzer and open the query SALES DATA for the SALES InfoCube. Find out the extent that Product T-F2##, with Sold-to party 1000, and in Sales Organization 1000, contributed to sales in the past few months. Call up the BW Analyzer, activate the macros, and press the Open icon in the Business Explorer. Log on to your APO system. Expand the SALES PLANNING info area and the SALES infocube. Select the SALES DATA query and press OK. You are given an aggregated view of the invoiced sales quantity and invoiced sales value of the three sales organizations. Right-click on the field next to APO product to restrict the evaluation for your product T-F2## via Select filter value. By right-clicking on sales organization you can drilldown the evaluation according to sold-to parties by choosing Add Drilldown According to sold-to parties. By right-clicking on the SALES key figure, you can drilldown the evaluation according to months by choosing Filter and drilldown according to cal.year/month.
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Demand Planning (DP)
Contents:
? Demand Planning Tasks and Functions ? Integration with the Business Information Warehouse (BW) ? Forecast Toolbox ? Lifecycle Planning ? Promotions
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Unit Objectives
At the conclusion of this unit, you will be able to: ? Explain how the Business Information Warehouse is integrated with Demand Planning, ? Describe the tasks of Demand Planning, ? Define various forecasting strategies, ? Create a simple sales forecast, and release the results to Production Planning.
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1 Course Overview 2 2 Integration and Technology 3 Modelling and Evaluation in APO 4 4 Demand Planning 5 5 Planning
Supply Network Production Planning/Detailed
6 Scheduling
7 Planning/Vehicle Scheduling 8 8 Global Available-to-Promise 9 9 Conclusion
Transportation
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Business Scenario
? The Precision Pump company will implement APO Demand Planning and use it to execute their monthly finished product forecasting. ? Consistent planning allows you to enter the forecast data on different planning levels and automatically consolidate the data in the master forecast.
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?? Demand
Planning is a complex, powerful, and flexible tool that supports your company's demand planning process. User-specific planning layouts and interactive planning books not only allow you to include different departments, you can also use them to include other companies in the forecast creation process. With APO Demand Planning you can use statistical forecasting methods and advanced macro techniques to do the following: - Create forecasts from sales history, based on many different causal factors; - Test predefined, and user-defined forecast models, and forecast results; And use a consensus-based approach to consolidate the demand plans of different departments. You can use forecast overrides and promotions to add marketing intelligence and management adjustments. The seamless integration with APO Supply Network Planning supports an efficient Sales and Operations Planning (S&OP) process. Planning is the application component in the Advanced Planner and Optimizer (APO) that allows you to forecast market demand for your company's products. The result of APO Demand Planning is the demand plan.
?? Demand
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Advantages of Demand Planning in APO
? Global server with a BW infrastructure ? Integrated exception handling, creation of user defined alerts ? Integration with Production Planning (S&OP scenario) ? Main memory based planning ? Flexible navigation in the planning table, variable drill down ? Extensive forecasting technique ? Promotion planning and evaluation, 'like' modeling ? Collaborative planning via the internet ? Sales Bills of Material (BOMs)
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?? The
Business Information Warehouse (BW) infrastructure includes easy to use features for extracting all the data from execution systems and analyzing it in the SAP BW Business Explorer. messages (alerts). Mails can be sent automatically, and status automatically queried.
?? Macros can be used to perform complex calculations, and to define conditions and exception ?? In
the S&OP scenario, the feasible production plan from SNP or PP/DS is compared with the original demand plan. Deviations are identified automatically and reported to the planner. following statistical procedures are all available for forecasting; Constant model, Trend model, Seasonal model, Trend and Seasonal model, Croston method with exponential smoothing, Linear regression, and Causal models with multilinear regression. External forecasting procedures can also be linked to this. modeling" refers to the forecasting of new products using historical data from old products. Life cycle definition is also covered in like modeling. can make each planning book accessible to customers or suppliers over the internet in order to be able to exchange data as soon as possible.
?? The
?? "Like ?? You
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Influencing Factors in Demand Planning

Company 1
Central Promotion Store Promotion Sales Sales Force Force Regional D/C
Company 2
Central Store Regional Store Promotion D/C Promotion
Customer
Season Season
Price Price Advertisement Advertisement ? ?
Price Price Weather Weather
Understanding demand in a dynamic business environment Multiple sources of demand plan data such as: internally created forecasts based on history, forecasts from customers, or point of sale (POS) data direct from retailers Managing all significant factors that influence demand Tracking and management of product lifecycles
? ?
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?? The
complexity and competitive nature of today's business environment requires organizations to consider many variables when developing a sales and operations plan. ? ? Multiple sources of demand plan data (e.g. manufacturer forecast is based on a distributors sales history, and/or point of sales direct from retailer.) ? ? Factors influencing demand (sales force size, R&D expenditures, advertising expenditures, price, promotions, seasonality.) ? ? Demand data can be exchanged with sales organizations, customers, and suppliers over the Internet (Collaborative Demand Planning).
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APO Integration - Business Warehouse
Demand Planning
Forecast Reporting
APO Data Mart
Sales history, Price, Costs, ... Forecast
Demand Planning specific data ? ? ? ? ? Forecast & planning scenarios Causal factors Lifecycle patterns Seasonal patterns Promotional patterns
Central Data Pool ? Summarized data ? POS, order, and shipment data ? Syndicated POS data ? Cost information ? ...
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?? SAP's ?? If
Business Information Warehouse (SAP BW) is contained in the APO scope of supply and is completely integrated with it. you are going to execute extensive reporting, it is a good idea to set up an independent BW server, and only transfer the data that is relevant for planning to the APO system. data structures in BW and APO are identical, you can also evaluate APO data with the BW frontend.
?? As
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Demand Planning Concept
Aggregated actual data
Location Product hierarchy Sold-to party Sales organization Region
Future demand forecast
? Incoming
order BW R/3 Excel Non-SAP system

? Statistical
value
? ?
forecasting forecasting
Quantities Values
? Collaborative ? Promotions
? Invoice
? ?
Quantities Values
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?? The
APO DP library of statistical forecasting and advanced macro techniques allows you to create forecasts based on sales history as well as any number of causal factors, and use a consensus -based approach to consolidate the results. intelligence and management adjustments can be added by using forecast overrides and promotions. actual data can be extracted from the R/3 system in exactly the same way as it can be imported from BW, Excel, and legacy systems.
?? Marketing
?? Aggregated
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Planning & Reporting
Customer
? Slice & dice ? Drill downs & ups ? Multiple demand plans to be simulated ? Standard forecast accuracy analysis
Regions
Pe rio d
? Consistent planning (top down, middle out, bottom up)
Aug.
W 3 2 W 3 3 W 3 4 W 3 5 W 3 6 W37
Sept.
W 3 8 W39 W40 W41
time sequence
203
124
Material
Product Groups
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?? Planning
supports online simulation in multiple planning scenarios, consistent planning throughout your enterprise (top down, middle out, or bottom up), drilling up and down, aggregation and disaggregation, and slice-and-dice techniques. planning means that planning data on all planning levels can be consistently held (automatic aggregation and disaggregation).
?? Consistent
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The Planning Table
Selection
APO - Product ID Object Object 1 Object 2 Object 3 Object 4 Text Text 1 Text 2 Text 3 Text 4
Design Graph
Total W 24 W 25
APO - Location
Capacity Leveling
Total W 27 W 28
Title view Key figure 1 Key figure 2 Key figure 3 Key figure 4 Key figure 5
W 26
Selection profile
User Selection ID
Header information Selected objects
Planning book Data views Standard selections Macros
Right mouse button: additional settings
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?? The ?? The ?? In
APO modules Demand Planning and Supply Network Planning have a standard user interface. It consists of two significant components: the selection range and the work area. selection range (Shuffler) is the window, where you choose the InfoObjects to be planned.
the Shuffler, you can save commonly used selections, and load existing selections. To open the Shuffler, choose the symbol selection window. selection profile displays all the selection IDs wh ich have been assigned for the planner. The planner can access commonly used selections quickly using the selection IDs. the data view area, you choose your planning books, and views. You can define a filter for available planning books and views.
?? The ?? In
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Calculations in Demand Planning
You can use macros to: ? Calculate deviations ? Make automatic corrections ? Calculate sales budgets ? Define your own exceptional situations ? Launch status queries ? Send mails
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?? Macros
perform complex calculations quickly and accurately. The extreme flexibility of the macros allows the planner to model a planning environment based on individual business tasks.
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Statistical Toolbox
? Univariate Forecasting
? ?
Moving average Models (constant, seasonal trend, seasonal) Exponential smoothing Seasonal linear regression Holt-Winters Croston's method (for sporadic demand)
? ? ? ?
? Causal Analysis
?
Multiple linear regression
? Composite forecasting
?
Weighted average of multiple models
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?? The
product portfolio of a company covers a variety of products in different stages of their lifecycle and with different demand types. Demand Planning offers a "toolbox" of proven forecasting methods. The system allows you to choose the best method for a specific demand type. forecasting extends the idea of pick-the-best; with this technique you combine two or more methods. method allows you to model "lumpy" (sporadic) demand. statistical forecasting toolbox provides all the features you require to efficiently create accurate forecasts, including everything from data analysis via time series models through multiple linear regression.
?? APO
?? Composite ?? Croston's ?? The
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Lifecycle Management & Like Modeling
Actual data of the old product
Sales
Forecasting of the new product
Like Lifecycle
Time
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?? You ?? A
use lifecycle planning and "Like" modeling to forecast the launch (phase -in) and discontinuation (phase-out) of a product. product's lifecycle consists of different phases: launch (phase-in), growth, maturity, and discontinuation (phase-out). This process models launch, growth and discontinuation phases. all characteristic value combinations, you can use either a "like" profile, a phase-in profile, or a phase-out profile, or any combination of these. the phase-out profile period is within the history horizon of the master forecast profile, the system adjusts history input values, displays the adjusted values in the original history and corrected history key figures, and writes the adjusted values in the corrected history. the phase-in profile period is within the future horizon of the specified master forecast profile, the system adjusts baseline (original) forecasts, and writes the adjusted values in the corrected forecast key figure.
?? For ?? If
?? If
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Promotion Planning
Forecast simulation Sales Total sales:
Profit
Total profit:
Promotion 1
Promotion patterns 95 96
-10%
Price
Planner Planner
97
98
Quantity
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?? Promotions ?? In
can have a major impact on consumer behavior.
APO Demand Planning, you can plan promotions or other special events independently of the rest of your forecast. Promotion Planning to record either one-time events, such as the millennium, or repeated events such as quarterly advertising campaigns. Other examples of promotions are trade fairs, coupons, free-standing inserts, competitors' activities, market intelligence. Examples of events that also have an impact on consumer behavior are upward/downward economic trends, and acts of nature, such as hurricanes, and tornadoes. uplifts can be defined in units or percentages by common promotion patterns. The effect of a promotion pattern that occurred in the past can be automatically detected using sales history or estimated by the planner. A promotion pattern can be archived in a promotion catalog; it can therefore be reused if a promotion of the same type is repeated. A copy function in the promotion catalog also supports "like" modeling of "like products," "like regions", and so on. There are several techniques available to determine the impact of a historical promotion. One suc h technique is multiple linear regression with or without a trend or seasonality.
?? Use
?? Promotional
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Release of Sales Quantities as Planned Independent Requirements
Demand Planning
Production Planning
Key figure: sales quantity
Planned independent requirements
Macros Alerts
SNP PP/DS
Key figure: feasible sales quantity
Production quantities
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?? Once
the various stakeholders in the forecast have reached a one-number, consensus plan, you release the demand plan as a planned independent requirement. demand plan from Demand Planning (DP) via either the demand planner or the SNP planner.
?? You release the ?? This
release causes planned independent requirements to be created in the order liveCache. These anonymous demands form the basis of SNP, or PP/DS, where BOM explosion, capacity planning, and sourcing are carried out for the complete supply network. feasibility of the planned sales quantities in SNP or PP/DS has been checked, the results can be transferred back to Demand Planning. Macros are used to analyze the differences between the demand plan and feasible quantities and alerts are generated if large differences occur.
?? After
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Demand Planning: Unit Summary
You are now able to:

? Explain how the Business Information Warehouse is integrated with Demand Planning ? Describe the tasks of Demand Planning ? Define various forecasting strategies ? Create a simple sales forecast, and release the results to Production Planning.
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Exercises
Unit: Demand Planning
Topic: Interactive Planning

At the conclusion of this exercise, you will be able t o: ?? Evaluate historical data ?? Create a sales forecast including corrections ?? Release the demand plan to Production Planning The Precision Pump company is creating a demand plan to provide planned independent requirements for Supply Network Planning. This plan uses a statistical forecast based on historical data, and includes input from regional sales managers.
1-1
Go to Demand Planning. Open the selection window and, under Show, select APO PRODUCT. Version 000 is already displayed automatically. In the next row, enter APO - Product once again, and on the right-hand side enter your product T -F2##. Load the data for the product into the planning table.
1-2
Perform a univariate forecast and analyze the graphic results. The seasonal pattern that occurred in the past has been extrapolated into the future. Go back to the planning table.
1-3
For three months from now enter a manual correction of 100 pumps. Check that the correction is automatically added to the demand plan. Save your plan.
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1-4
Release your demand plan to Production Planning. Use the RELEASE variant, and enter your product T-F2## and the horizon. Which locations have had planned independent requirements created for them?
Field Name Planning area Planning version Key figure Planning version Category Horizon Daily buckets profile Product Input Data SALES 000 FINFOR 000 FA The next 3 months 90 days T -F2##
1-5
Make sure that planned independent requirements have been created in the LiveCache. Go to PP/DS product view for version 000, product T-F2##, and location 2400.
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OVERVIEW of Planing in APO

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OVERVIEW of Planing in APO

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?? JAVASCRIPT ?? SAP, SAP

SAP Advanced Planner and Optimizer (APO)

Level 2 SAP APO

Level 3 SAP APO

PP - Planning and Execution for Discrete and Repetitive Manufacturing

SAP APO Overview AP205 2 days

Supply Network Planning AP220 3 days

Integration Master Data

Production Planning/ Detailed Scheduling AP230 2 days

5 days BC555 2 days live Cache Administration

PP-PI Process Manufacturing

Notes to the user

Company Profile: Precision Pump Company Precision Pump Company

Plants and Distribution Centers

3800 Denver Denver

100- 300 (HALB, T-B3##) (1000, 0, _ )

Course Overview Diagram

1 1 1 Course Overview 2 2 Integration and Technology 3 Modelling and Evaluation in APO

7 Planning/Vehicle Scheduling 8 8 Global Available-to-Promise 9 9 Conclusion

The Supply Chain: From Supplier to Consumer

Supply Chain Optimization

Increase customer responsiveness at least cost

Why Have Supply Chain Management?

Increased Demand for Value-Added Programs Custom packs/displays

Key Supply Chain Problems

Comparison of MRP II with APS Systems

Result: Feasible plans

?? Disadvantages of the MRPII concept:

SAP's Total Supply Chain Solution

Supply Chain Solutions (APO)

Levels of Supply Chain Management

Supply Chain Design Network Design (ND)

Operational detailed planning (operational

Ext. proc. planning PP/DS SNP

Production planning PP/DS SNP

Delivery planning ATP, TP/VS

External procurement for example, LES, MM

Production for example, PP

Outbound delivery for example, LES, MM, SD

External procurement at customer

Supply Chain Collaboration marketplace integration

Supply Chain Collaboration marketplace integration

APO Planning Components

APO Product Map

Supply Chain Cockpit

?? Network Design: Strategic

Strategic Supply Chain Planning

APO Planning Sequence with R/3 Integration

Logistics Execution System (LES) Delivery Transfer order Execution

?? APO is a planning tool:

The Demand Planning Lever Effect

Supply Network Planning

?? Small changes made during Demand Planning cause large changes

Functions of Demand Planning

? Lifecycle planning ? Promotion planning

Demand Planning Concept

Aggregated actual data

Location Product hierarchy Sold-to party Sales organization Region

Future demand forecast

order BW R/3 Excel Non-SAP system

Collaborative Planning in APO