This action might not be possible to undo. Are you sure you want to continue?
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.
? SAP AG 2001
software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. , WINDOWS ®, NT ®, EXCEL ®, Word ®, PowerPoint ® and SQL Server ® are registered trademarks of Microsoft Corporation. , DB2 ®, OS/2®, DB2/6000 ®, Parallel Sysplex®, MVS/ESA®, RS/6000®, AIX ®, S/390 ®, AS/400®, OS/390®, and OS/400® are registered trademarks of IBM Corporation.
® ® ®
?? Microsoft ?? IBM
is a registered trademark of ORACLE Corporation.
?? INFORMIX ?? UNIX
-OnLine for SAP and INFORMIX® Dynamic Server TM are registered trademarks of Informix Software Incorporated. , X/Open ®, OSF/1®, and Motif ® are registered trademarks of the Open Group. DHTML, XML, XHTML are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.
?? HTML, ?? JAVA
is a registered trademark of Sun Microsystems, Inc.
is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. Logo, R/2, RIVA, R/3, ABAP, SAP ArchiveLink, SAP Business Workflow, WebFlow, SAP EarlyWatch, BAPI, SAPPHIRE, Management Cockpit, mySAP.com Logo and mySAP.com are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other products mentioned are trademarks or registered trademarks of their respective companies.
© SAP AG
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
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
? SAP AG 2001
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.
© SAP AG
? General understanding of supply chain concepts
? SAP AG 2001
© SAP AG
The exercises are additional © SAP AG AP010 Preface-4 . examples that are done during the course.Target group Target group ? Project team members involved in the implementation of APO (Advanced Planner and Optimizer) in their company. ? Duration ? 2 days ? ? SAP AG 2001 Notes to the user ?? The training materials are not intended as self-study programs. Participants can also use these examples to refresh or extend their knowledge after the course. They complement the course instructor's explanations. ?? There may not be enough time in the course to do all of the exercises. There is space for you to write down additional information on each page.
Products ? ? In the product catalog are turbomolecular. ultrahigh vacuum). Customers ? ? From the electronics industry. chemical technology. In this area. rotation and membrane pumps. chemical technology. selling a large variety of high-tech standard pumps. and process technology up to and including vehicle manufacturers. pharmaceutical technology. Precision Pump Company has optimized a large number of products to match these special requirements. They are distinguished from the CD by their large memory capacity. there has to be ultimate pressure of < 10-10 mbar (i. DVDs are a form of rewritable optical memory media. ? ? Via intensive "co-engineering" with manufacturers. ? ? In the rapidly growing business area of turbomolecular pumps in particular. pharmaceutical technology and process technology up to and including vehicle manufacturers. centrifugal. In the product catalog are turbomolecular. rotation and membrane pumps (for the manufacture of ultrahigh vacuums. ? SAP AG 2001 ?? The Precision Pump Company was launched in 1971 and is the market leader. centrifugal. can only be made under high vacuum conditions. to the final chip. for example). The company recently became ISO certified and has been listed in the New York share index Nasdaq 100 since 1999. © SAP AG AP010 Preface-5 . and universities. selling a large variety of high-tech standard pumps. Its customers come from the electronics industry.e. the company has shown a clear rise in revenue over the past business year: in the semiconductor industries countless steps. and universities. semiconductor industries. It has been listed in the New York stock index Nasdaq 100 since 1999. ? ? During the current fiscal year. the company is planning to enter the booming DVD growth market. semiconductor industries.Company Profile: Precision Pump Company Precision Pump Company ? The Precision Pump Company was launched in 1971 and is the market leader. from wafer manufacture. Coating equipment needed to create these rewritable DVDs also uses vacuum technology.
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 ? SAP AG 2001 DC © SAP AG AP010 Preface-6 .
T-F2##) (1000. T-T2##) (1000. During automatic conversion it was defined that only the products P-102. stock. consulting) (training material type. 100-100. single/collective requirements indicator) © SAP AG AP010 Preface-7 . T-T4##) (1000. 10007. 2 ) 1003 Gusswerke (?) 1011 Kugelmeier (5300001106) 100-310 (ROH. 2 ) 1002 M üller (5300000790) 1022 Max Wholesale (5300000721) 100-210 (ROH. 1000. 100-130) (1000. 100-110. T-T3##) (1000. T-B3##) (1000. 00 100-130 (ROH. 1000. 2 ) 1003 Gusswerke (?) 1011 Kugelmeier (5300001107) 100-410 (ROH.BOM P-102 Pump Precision 102 P-102 (FERT. _ ) Item 0010 Casing 1 0020 Fly wheel 1 0030 Shaft 1 0040 Pressure cover 1 0050 Document 1 0060 Screw 1 100-100 (HALB. _ ) 100-400 (HALB. T-B?##) (1000. 0. T-T5##) (1000. 100-300 and 100-310 are SNP relevant. 10. T-B4##) (1000. 10.20)) (plant. training material number (xx = 00 . T-T0##) (1000. 10. 2 ) 1003 Gusswerke (5300000867) 1006 Blacks (5300000720) 1011 Kugelmeier (5300001081) 100-130 (ROH. ? ? Legend: (Demo material number for SD. 1000. 2 ) Item 0010 Slug 1 0020 Flat gasket 1 0030 Screw 8 0010 Slug 1 0010 Slug 1 0010 Slug 1 100-110 (ROH. 000. This BOM was transferred via CIF as a PP/DS BOM with the screw 100-130 only being planned in R/3. 1000. 2 ) P-100 (T-F1##) DRW. 2 ) 102-200 (HALB. T-B1##) (1000.300 (HALB. 1000. An SNP BOM was then generated from the PP/DS BOM. 0. 1000. T-T1##) (1000. 2 ) 100. 2 ) 1003 Gusswerke (5300000866) 100-120 (ROH. 2 ) 1003 Gusswerke (?) 1011 Kugelmeier (5300001083) SNP relevant ? SAP AG 2001 Only R/3 ?? This slide shows the R/3 BOM for the product P-102 (T-F2##).
APO Overview Contents: ? Introduction to Supply Chain ? Overview of APO Planning Applications ? SAP AG 2001 © SAP AG 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 ? SAP AG 2001 © SAP AG AP010 1-2 .
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 ? SAP AG 2001 © SAP AG AP010 1-3 .Unit Objectives At the conclusion of this course.
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 ? SAP AG 2001 © SAP AG AP010 1-4 .
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
7 Planning/Vehicle Scheduling 8 8 Global Available-to-Promise 9 9 Conclusion
? SAP AG 2001
© SAP AG
? 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.
? SAP AG 2001
© SAP AG
The Supply Chain: From Supplier to Consumer
Supply Chain Optimization
Increase customer responsiveness at least cost
? SAP AG 2001
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
© SAP AG
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 ? SAP AG 2001 Increased Demand for Value-Added Programs • Custom packs/displays © SAP AG AP010 1-8 .
as we move along the supply chain. where the decoupling of make-to-stock production (push strategies) (MTS). use postponement strategies to define how far the sales order links with the supply chain. and maketo-order production (pull strategies) (MTO).Key Supply Chain Problems ? Postponement ? Bullwhip Effect Customers Delivery time DCs Lead time Plants Suppliers ? SAP AG 2001 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. triggered by lot size creation. or at least looking into the possible benefits.due to large fluctuations at the manufacturer or the supplier . bullwhip effect refers to an increase in variability of a (constant) demand pattern . ?? You ?? The ?? Implementing an APS system (Advanced Planning System) does not in itself solve supply chain © SAP AG AP010 Push 1-9 Pull . inventory and safety stock must be built up at component or finished product level in plants or distribution centers (DC). It is also important that company bosses are prepared to consider making organizational changes to their companies. takes place. problems. in other words.
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 © SAP AG AP010 1-1 0 .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 ? SAP AG 2001 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.
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 ? SAP AG 2001 Non-R/3 Systems Open Systems © SAP AG AP010 1-1 1 .
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 ? SAP AG 2001 © SAP AG AP010 1-1 2 .
Each hierarchically superior level determines the ranges of the planning levels below it. Within the planning level APS systems are used (APS = Advanced Planning Systems). transportation planning. and at the execution level.. logistically-relevant IT system for execution). MM. McKinsey portfolios. personnel planning. MM Production for example. The criterion for deciding what belongs to which planning level is not primarily the planning horizon but rather the scope of the planning. cost leadership). ?? ?? . © SAP AG AP010 Partner 1-1 3 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 . planning PP/DS SNP Production planning PP/DS SNP Delivery planning ATP. PP Outbound delivery for example. comparatively unstructured and simple planning tools such as portfolio techniques (product life cycle analysis. Tactical planning is decisive for operational planning and execution because they form the planning environment in the company (plann ing personnel. proc.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. The planning level is divided into different planning levels depending on the meaning of the decisions made: strategic. LES. Boston Consulting Group portfolios. Tactical level (strategy realization and infrastructure planning): decisions about direction are realized at this level when the company is restructured based on the strategies. for example) are used to make decisions about the direction of the company (such as product diversification strategies. This links the operational planning level and the execution level. quality strategies. ERP systems (ERP = Enterprise Resource Planning) are used. planning processes) as well as the part of the company that physically executes (such as factory planning. their selection. there is a planning level and an execution level. TP/VS External procurement for example.. implementation and setting parameters. SD External procurement at customer ? SAP AG 2001 Execution ?? In Supply Chain Management. Strategic level (strategy planning): Here. tactical and operational. LES. IT systems for planning.
?? ?? © SAP AG AP010 1-1 4 . recurring planning based on tactical realization decisions such as strategies for settling sales orders and pre-planning. additional capacity. which are not questioned again in operational planning. sorting. outline agreements with suppliers. additional shifts. for example. Operational level (operational aggregated and detailed planning): Structured. delivery). receipt. Planning for further planning in the future is usually done aggregated objectively or based on time since planning data is uncertain. administrative activities are also performed at the execution level. 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.. Aggregated planning also serves to redirect tactical planning if necessary.. when papers for production (production orders) are printed. These activities are supported by execution systems. Operational planning can also be long-term to bridge bottlenecks that will occur in the future. for example. such as early planning for seasonal requirements or planning runs to determine components with longer replenishment times.. Execution level: Along with the development of the product (production. stock transfer.
Generates deliveries and shipments. production and distribution decisions are supported here. cross-location. ?? Network Design: Strategic planning for analyzing. PP/DS uses simultaneous material planning and capacity scheduling.to long-term production and procurement planning with simultaneous material planning and capacity scheduling. 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 ? SAP AG 2001 ?? Supply Chain Cockpit: A graphical tool for evaluating and controlling the supply chain. techniques based on aggregated sales figures. optimizing and reorganizing the supply chain. Deployment is used to plan short-term replenishment. Planning/Vehicle Scheduling (TP/VS): Optimizes use of transportation vehicles and selection of carriers. detailed production planning. mid . Long-term sourcing. and optimization techniques to generate feasible plans that are in the optimum sequence with the optimum setup-times. ?? Demand Planning (DP): aggregated and detailed demand planning with a variety of forecasting ?? Supply Network Planning (SNP): Finite. Planning/Detailed Scheduling (PP/DS): Finite. Available-to-Promise (ATP): Rules-based availability check that is integrated with production planning and product allocation. ?? Production ?? Transportation ?? Global © SAP AG AP010 1-1 5 .APO Planning Components Monitor APO Product Map Network Design Supply Network Planning Supply Chain Cockpit Tactical Agg.
as well as to make additional decisions regarding locations (location determination and location selection). taking account of demand and cost structures. are four methods available in Network Design for planning the supply chain network. These methods optimize either geographical distances or costs. You can use this tool to make assignment decisions (relationships between individual locations and assignment of products to locations). 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.Network Design Strategic Supply Chain Planning ? SAP AG 2001 ?? Network Design is a component used specifically for strategic planning. ?? There © SAP AG AP010 1-1 6 . in each case taking the demand structures into account.
Sales orders then consume the planned independent requirements in APO depending on the APO "requirements strategy". 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 ? SAP AG 2001 Transp. Sales and Operation Planning (R/3 SOP). ?? Sales ?? In . it is also possible to generate planned independent requirements in the R/3 system (either manually in R/3 Demand Management. Existing storage location stock is also included in the planning.or mid-term horizon for the entire supply chain: you generate stock transport requisitions (for planning and stock transfer) between distribution centers and plants. Confirmations APO Demand Planning (DP) Planned ind. If you do this.Available to Promise) is done in APO.. Plng & Veh.APO Planning Sequence with R/3 Integration R/3 or non-SAP system Flexible Planning Demand Planned ind.reqmts Consumption Sales order Supply Network Planning (SNP) Prod.reqmts management Sales & Sales order Distribution (SD) Production Planning (PP) Release. In Production Planning and Detailed Scheduling however. Supply Network Planning (SNP) you plan for the short. © SAP AG AP010 1-1 7 . Here. In APO Demand Planning you generate planned independent requirements (release forecast to APO Demand Planning) that are used for make-to-stock planning. you usually generate planned orders and purchase requisitions directly in the production plant for the short term horizon. You use the "Administrator Workbench" in APO to upload aggregated historical data from the R/3 or BW system. orders and planned independent requirements form the starting point for both Supply Network Planning (SNP) and Production Planning / Detailed Scheduling (PP/DS) in APO. 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. the planned independent requirements are transferred to APO through the R/3 APO interface (CIF). sales orders are entered in the R/3 system (sales module) but the availability check (or ATP check . or automatically in R/3 Demand Management using data from R/3 Flexible Planning. Plng & Det. or Sales and Profit Planning (R/3 CO/PA). If you are not yet using APO Demand Planning.. 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).
© SAP AG AP010 1-1 8 .
execution functions such as release. material staging. to APO through the CIF. ?? As ?? APO is a planning tool: ?? You © SAP AG AP010 1-1 9 . confirmation... you only need to do this if Production Planning is being done in the R/3 system rather than in APO). ?? 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). create planned deliveries in Transportation Planning and Vehicle Scheduling (TP/VS). 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.. Confirmation and other data is then transferred back to APO from the R/3 system. The R/3 system then actions the above (such as printing documents and managing status). 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. It is however possible to automatically transfer planned independent requirements that have been maintained in R/3. You use the APO Deployment /TLB (Transport Load Builder) to convert stock transport requ isitions into stock transport orders. In APO TP/VS different deliveries can also be grouped together into one shipment. or goods movement for production orders or purchase orders are performed in the R/3 system. 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 Demand Planning Lever Effect Demand Planning Supply Network Planning Production Planning ? SAP AG 2001 ?? 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. © SAP AG AP010 1-2 0 .
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
? SAP AG 2001
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.
© SAP AG
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 ? Promotions
? SAP AG 2001
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.
© SAP AG
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
? SAP AG 2001
© SAP AG
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 . ensures that the right quantity is available on the right day without critical resources being overloaded. It creates a rough quantity-based.Supply Network Planning (SNP) Screen Title APO .Product Capacity Leveling Tota l W 27 W 28 Supply Network Planning 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 ? SAP AG 2001 ?? SNP Planning plans the mid?? The to long-term horizon. ?? SNP © SAP AG AP010 1-2 4 . The smallest unit used for scheduling is days. 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.
and distribution in one consistent model in the entire supply network ? ? Synchronizing activities and planning material flow along the supply chain © SAP AG AP010 1-2 5 .to long-term.Supply Network Planning Scenario Demand Plan Supplier Plant DC Customer ? SNP plans the material flow along the supply chain ? Mid. supply optimization ? Result: Feasible plans ? SAP AG 2001 ?? The role of Supply Network Planning involves: ? ? Planning supply to meet demand ? ? Integrating purchasing. production. finite. cross-plant planning ? Prioritization of demands.
and Short-Term Planning Sales orders Forecasts Sales orders Forecasts Production Planning/Detailed Scheduling ? PP/DS Supply Network Planning ? SNP planned orders requisitions planned orders ? Purchase ? Purchase requisitions ? Stock transfers ? Stock transfers ? PP/DS ? Finite. When an order is shifted. 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 ? SAP AG 2001 Production horizon ?? SNP integrates purchasing. ?? SNP uses advanced optimization ?? Pegging © SAP AG AP010 1-2 6 . global consistent model. and transportation so that comprehensive tactical planning and sourcing decisions can be simulated and implemented on the basis of a single.Comparison of Mid. distribution. reduced order fulfillment times and inventory levels. to plan product flow along the supply chain. production. based on constraints and penalties. techniques. and improved customer service. manufacturing. The result is optimal purchasing. and distribution decisions. is the link between receipts and issues along the supply chain. all dependent orders can be adjusted automatically.
Cross-plant planning.to long-term planning in the production plant however do all play an important role in Supply Network Planning. It is irrelevant here whether a requirement falls within an early or a late shift. © SAP AG AP010 1-2 7 . ? ? In Supply Network Planning (SNP) demands ar e aggregated for a specified bucket ("day" for example). Production Planning and Detailed Scheduling (PP/DS) is usually used for to-the-minute shortterm planning in a production plant. and does include order sequences (sequencing and optimization of sequences). In the short-term horizon.to long-term planning over the entire supply chain (in particular when there are several plants and distribution centers). 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. ? ? Production Planning and Detailed Scheduling however. as requirements are only planned roughly here .it does not include break times either. it is no longer planned in the SNP planning run. does schedule orders to-the-minute (meaning that shifts and breaks are included here). The sequence of orders is not an SNP time consideration. but instead in the production planning run of PP/DS. and mid .Production Planning / Detailed Scheduling (PP/DS) Production Planning/ Detailed Scheduling ? SAP AG 2001 ?? Where Supply Network Planning (SNP) is usually used for rough mid.
© SAP AG AP010 1-2 8 . external procurement.Functions of Production Planning / Detailed Scheduling (PP/DS) ? Plans production. PP/DS has the following functions: ? ? It generates planned orders (to plan in-house production). R/3). PP/DS schedules and plans all operations of an order that are relevant for planning at the different resources. 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. and to sequence from there. ? ? Takes order sequences into account: when new in-house production orders are created. 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 ? SAP AG 2001 ?? 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. Order operations are only created at these resources if there is sufficient capacity for the order quantity on the corresponding date. 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. and purchase requisitions or scheduling agreement schedule lines (to plan external procurement) in the event of product shortage. you can change the sequence and resource assignments of existing orders using the optimization run. Alternatively you can use the optimizer to execute a sequencing. Therefore. it is possible for orders to be generated that do not have an optimum order sequence. the planning results are transferred to the execution system. taking account of the capacity situation. ? ? Machine scheduling optimization: during planning. ? ? It is possible to display the orders in graphic format (in the detailed scheduling planning board). Execution functions such as confirmations and goods receipts are performed in the execution system (for example. Therefore. When there is no available capacity. the system searches for a date on which the order operation can be carried out. ?? PP/DS is a planning tool. the setup times in the new order can be determined automatically from the setup status of the resources (depending on the preceding order).
g. customers.Deployment Deployment adjusts the stock transfers for short-term changes on both the supply and demand side (distribution detailed planning). push deployment. It generates optimized replenishment plans that take into account short-term changes on the supply or demand side. such as transportation and storage capabilities. fair share. © SAP AG AP010 1-2 9 . as well as constraints. ?? A variety of deployment strategies are used depending on the current situation (e.. pull-push deployment). and vendor-managed inventory (VMI) accounts. ? 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.
PP/DS.Transportation Management APO TP/VS (Planning) ? Is integrated with the APO components DP. and long term horizons BW (Monitoring) LES (Execution) TP/VS. LES. which is complemented for transportation execution by the SAP component from Logistics Execution Systems (LES) . SNP. and ATP ? Evaluates the planning in BW ? Plans for both short. © SAP AG AP010 1-3 0 . 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.
APO creates a planned order for the required quantity in PP/DS. The system can also check if receipts (for example. ? ? Time series: Planned orders and production orders are aggregated and represented in a time series. or non-SAP system) as an event (event-driven ). If you create a sales order in R/3. ? ? Integration with PP/DS : It is also possible to set it so that when a product is not available.Global Available-to-Promise (Global ATP) Is it possible to deliver the product in the required quantity. ATP checks are triggered from the OLTP system (R/3 system. for example. In the interface with APO you can specify that the ATP check is to be done in APO and not R/3. ?? Global ATP has the following © SAP AG AP010 1-3 1 . functions : ? ? Rules-based ATP : When there is no availability. to provide customers with reliable confirmation dates for their sales orders. the system first checks if there is enough of the requested product in stock. production orders and planned orders) have already been planned by the requested date. 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). which can be used to evaluate the incoming requests from the sales orders. This improves performance of the ATP check. the sales order directly triggers production. If it triggers an order for in-house production. ? ? Product allocations: Product allocation allows you to manage the supply of scarce products to customers. 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. so that each customer only receives an allocated amount.
?? In ?? In ?? The © SAP AG AP010 1-3 2 . optimizer for PP/DS. optimizer for Transportation Planning. Linear programming is able to calculate an "exact solution". This allows the optimization system to find a suitable solution faster. Therefore. Production Planning and Detailed Scheduling (PP/DS) however. Instead. different optimizers can be installed on the same server on which the APO application. optimizer for Supply Network Planning.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. linear programming is used for optimization in Supply Network Planning. For this reason. there are usually more complex optimization problems for which no "exact solutions" can be found. optimizer for Network Design. The APO application server and the optimizer are linked via a TCP/IP connection. the liveCache. linear programming is less suited for PP/DS. Here you specify whether the optimizer is to be called on the APO application server or on a different server (transaction sm59). Approximate optimization procedures are therefore more suited to be used in PP/DS (genetic algorithm/constraint-based programming). search Transportation planning ? SAP AG 2001 ?? In APO. 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). and the database are all installed (but you can also install them on different servers). optimizer for Sequence Planning. solutions are more able to approximate an "optimum or exact solution". Supply Network Planning. the following optimizers are available: optimizer for CTM.
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 .
? SAP AG 2001 © SAP AG AP010 2-2 .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.
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 .
the liveCache technology allows quick. The Core Interface (CIF) provides a close integration of the systems. ? SAP AG 2001 © SAP AG AP010 2-4 .Business Scenario ? With high performance and pegging procedures. where order data is exchanged in real-time. ? Pump Precision uses the R/3 as an execution system and APO for planning. simultaneous material and finite capacity planning.
and saved in InfoCubes. You can also transfer the demand plan to the operating system (OLTP) as planned independent requirements. This data is the basis for forecasting. seamless integration with Supply Network Planning (SNP). which creates planned independent requirements for Supply Network Planning (SNP). 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 Supply Network Planning Deployment Key Performance Key figures (KPIs) Transportation Planning ? SAP AG 2001 ?? Aggregated actual data can be transferred to APO from OLTP. FI Planned Indep. and PP/DS. ?? You ?? The © SAP AG AP010 2-5 . BW (Business Information Warehouse). and Legacy systems. and PP/DS supports an efficient S&OP process.APO Application Architecture OLTP OLTP (R/3) (R/3) LIS. release the demand plan to Production Planning. Excel. The demand plan is created as a result of the forecast. CO-PA HR.
? ? Scalability via a number of processors. © SAP AG AP010 2-6 . ?? Little navigation needed within the networks. node access (grid access points. ?? Display ?? Easy ?? Simultaneous ?? Fast data recovery. This is more efficient than relational data modeling). because of an interlaced architecture. 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). of complex data structures (nets. The typical liveCache data structure is NOT a relational data table. data will not be lost. In case of a program termination (downtime).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 µs 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). navigation). ?? Higher data security in a simple C program that saves all data. access is possible (read & write). ? ? 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. ? ? Scalability of the liveCache. trees).
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. reduced (filter) or transformed into an APO presentation. Execute procedure "Schedule_order" (OUT : var1. Some of the data is then also sent to the liveCache . IN : table1. the first liveCache upload ( bring up ). the OLTP system collects the relevant changes in regular intervals. liveCache. ?? Changes from an OLTP are transmitted into APO in real-time and therefore into ?? The © SAP AG AP010 2-7 . mass data (master data and transaction data) from the connected R/3 and legacy system(s) is either sent to the APO System. in a special data structure (black board). 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. ? Avoid disk I/O through shared.liveCache Technology Application Server ABAP-Application Program exec sql. From here. IN : var2) endexec.g. buffered data ? ? Hold all application data in memory Save large datasets ? Optimized data structures ? Support application-specific data structures (e. APO server presents changes to be sent back from APO or liveCache into an OLTP system.
com component (for example. Most Plug-ins concern add-ons (R/3 standard software enhancements with additional functions).5B). APO or BW) with one or several R/3 Systems. The integration between R/3 and APO is possible as of R/3 release 3.R/3 Plug-In Technology BBP CRM BW SEM R/3 Plug-in R/3 (from Release 3.com components can be inserted at the same time. Only the object data relevant for the individual planning and optimization process in APO is transferred from the complex data records into R/3. several mySAP. components with transaction and master data.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. integration is possible as of 4. ?? The ?? Plug-ins supply the © SAP AG AP010 2-8 . it also guarantees a stepby-step supply with all the relevant data changes. With R/3 Plug-ins. APO CIF does not only provide the SAP APO System with initial data records (initial supply). In this way. The CIF is the central interface for connecting APO to the existing R/3 System environment.1I (for the PM/SM area and production process models. data transfer between R/3 and APO Systems is defined and controlled using the APO Core Interface (CIF).
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 .
?? 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 . The APO Core Interface is a real-time interface. 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. linking APO with one or several R/3 Systems.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. 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.
transfer of master data from the R/3 is displayed in the corresponding master data in APO. and then later as transfers of data changes). ?? The ?? The © SAP AG AP010 2-1 1 . but can also be created manually... Customer. Only the settings which cannot be transferred from the R/3 are maintained directly in APO.. transaction data relevant for planning. 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. APO CIF Real-time CIF Order • Production • Procurement • Replenishment live live Cache Cache Plant.. such as warehouse stock and sales or production orders is also transferred from the R/3 into APO via the CIF interface. R/3 remains the execution system for the master data.APO Integration (3) R/3 Sales order Planned order Production order Order .. Only the master data relevant for planning in APO is transferred (firstly in the form of an initial transfer. And vice versa. This integration of transaction data takes place in real-time. the results of the planning in APO are returned to the R/3 via CIF and executed there.
Only the data objects needed in the data structures reconciled in the planning in APO for the particular planning and optimization processes are transferred from the complex dataset in R/3 into APO. ?? Both ?? The ?? The R/3 System remains the dominant system for the master data. that does not exist in R/3 is maintained directly in APO. the initial data transfer (initial transfer) and the transfer of data changes within APO take place via the APO Core Interface. Only specific APO master data © SAP AG AP010 2-1 2 .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. 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. master data objects in APO are not identical with those in R/3.
The retransfer of the planned independent requir ements that you may require if you only perform Demand Planning in APO. planned orders and purchase requisitions. must be triggered from Demand Planning in APO with a specific transaction. you can define in Customizing whether a real-time or periodic publication is to be performed. New transaction data or changes to existing transaction data is automatically transferred.Transaction Data Objects of the CIF R/3 R/3 transaction data Orders Purchase requisitions Sales orders Planned orders Planned ind. ?? The ?? In ?? For © SAP AG AP010 2-1 3 . (For transaction data of the APO component SNP. APO Initial data transfer APO transaction data Order with category BF (PchOrd) AG (PurRqs) BM (SalesOrder) AI (PlOrd.) transaction data objects in APO are not identical to those in R/3. reqmts Reservations Supplies . 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.. planned independent requirements can only be transferred from the R/3 into APO. you can specify in APO that they are only transferred from APO to the R/3 System if the conversion indicator has been set...) FA (FC req.) AM (PrdRes) CC (Stock) .. the standard system. All transaction data in R/3 is transferred to APO as orders that can be distinguished by ATP category. Change transfer Realtime ? SAP AG 2001 ?? The initial data transfer of transaction data takes place first.
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. We recommend selecting these two types of data in separate integration models and then also tra nsferring them separately. 2.. you select the master and transaction data you want to transfer. any transaction data that is contained in an active integration model. Activate integration model Integration model is active Start Data is transferred for the first time.Transfer of Data to APO 1. a continuous real-time incremental data transfer is performed between the R/3 System and APO.. You can find the menu option Core Interface Advanced Planner and Optimizer (the CIF menu) under Logistics -> Central Functions -> Supply Chain Planning Interface. 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. the integration model. © SAP AG AP010 2-1 4 . Generate integration model Determine name and APO target system Select master and transaction data Name Target system Sales orders Production orders Storage location stock . Note that you must first deactivate these integration models. integration model distinguishes between master data and transaction data.
liveCache Integration with R/3 BW extractors DP Forecast liveCache APO Planned indep. orders. stock transport orders and planned independent requirements. are also distributed via the CIF interface into the execution systems. planning results of APO. the purchase requisitions. can release the Demand Planning forecast to the liveCache and therefore create planned independent requirements. ?? You ?? The ?? The © SAP AG AP010 2-1 5 . Planned orders can also create direct production orders in the OLTP system. stock transport requisitions. Alternatively. you can transfer planned independent requirements from the execution system. supplies and planned independent requirements of the execution systems are transferred via the CIF interface into APO. 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).
You can only transfer planned orders as production orders to the OLTP system from PP/DS. -> Supply Chain Planning -> Supply Network Planning (SNP) -> Basic Settings -> Configure Transfer to OLTP Systems you can configure how transfer should take place. the planned orders are adjusted in the OLTP system. can transfer the results of Demand Planning as planned independent requirements to the OLTP systems.APO . If you convert SNP planned orders into PP/DS planned orders. and the TLB confirm the OLTP stock transport requisitions and can convert them into stock transport orders or VMI sales orders. similar to the transfer from Flexible Planning or Sales and Operations Planning (R/3) to demand management. can also transfer the PP/DS planning results as planned orders. purchase requisitions and stock transport requisitions to the OLTP system. can transfer the SNP planning results as planned orders. ?? You ?? You ?? Deployment ?? Via Customizing -> APO © SAP AG AP010 2-1 6 .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. purchase requisitions and stock transport requisitions to the OLTP system.
It links each input node from requirements or rec eipts with output nodes from receipts. planned orders and storage location stock is therefore defined in the system. Only the user or an external program can change these relationships. purchase requisitions. stock transfers. The material flow between requirements. ?? There are two types of pegging: © SAP AG AP010 2-1 7 . with regard to quantity and date changes. ? ? Static Pegging: All relationships are fixed. ? ? Dynamic Pegging: The pegging relationship is re-calculated each time. when a product receipt or issue takes place. Pegging allows the bi-directional planning of components to the end product and of the end product to the components.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.
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 .
? SAP AG 2001 © SAP AG AP010 2-1 9 .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.
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 .
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 .Unit Objectives At the conclusion of this unit.
Course Overview Diagram 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 3 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 .
After each planning cycle. ? In the Alert Monitor. ? Key Performance Indicators (KPIs) provide benchmarks for defining the goals of the company. ? SAP AG AG 2001 © SAP AG AP010 3-4 . every planner can find his current planning problems and exception messages.Business Scenario ? Precision Pump company uses the Supply Chain Cockpit for multi-site analysis and documentation of planning results. Precision Pump company uses KPIs to analyze the performance of its supply chain.
You must assign master data that you create in APO explicitly to the model. resources and plans that are transferred from OLTP systems are automatically assigned to model 000. supply chain network. The active planning version is 000.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 version dependent master data and movement data Planning Version n version dependent master data and movement data ?? The network model represents the supply chain and consists of individual nodes and relationships. each with different versions for simulation purposes. ?? Master data like locations. ?? All APO planning functions are based on the supply chain model. resources. The model covers the entire ?? You also have the option of creating several models. It is modeled in the Supply Chain Engineer and contains details like locations. transportation lanes and production process models (PPMs). In APO it is possible to create and maintain different versions of a model for simulation purposes. products. There is only one active model (000) with an active version. © SAP AG AP010 3-5 . products.
each with different versions for simulation purposes. Supply Chain Engineer is a fully integrated APO component used for creating models. You also have the option of creating several models. Supply Chain Cockpit allows planners to make an integrated analysis of transactional data in the supply chain. © SAP AG AP010 3-6 . The relevant data objects are imported here from the source system to APO. The model is the basis for all APO planning functions. It covers all areas of the network chain. such as by indvidual region or product line. The network model represents a supply chain and consists of individual node points and links. ?? The ?? The ?? The Alert Monitor gathers messages regarding problems within your plan. You can use this component to create or change supply chain network models. A model can have different planning versions. It also allows data to be broken down into planner-specific subsets. from the supplier's supplier to the customer's customer.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.
supplier. the work area of the supply chain you can select: ? ? Locations (plant. The transportation lanes in your work area are defined using the model in which you are working. 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. customer) ? ? Resources. DC.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. transportation ? ? Products ? ? PPMs (production process models) ?? The ?? In © SAP AG AP010 3-7 . The work area is used exclusively as a filter for displaying objects in the Cockpit and Engineer. storage. processing. production. You can limit th e view to the objects on which you want to concentrate when you are defining work areas.
MRP Stock transfer Carrier zone area point ? Transportation lanes ? SAP AG 2001 ?? In APO. ? ? DP. ?? The ?? A ?? Product © SAP AG AP010 3-8 . master rec ords. An MRP area is planned in SNP like a production plant. The transportation zone is used in the TLB and in transportation planning. a carrier. transportation zone can be used to group together customers. resources and PPMs (production process models) are assigned to the locations. ? ? You can map production.Objects in the Supply Chain Network ? Locations Supplier Plant DC Customer Transport. SNP and PP/DS PPMs (production process models) are available to allow you to define BOMs and routings. material flow between locations is modeled via transportation lanes. transportation and handling capacities via resources. You map your supply chain via locations and transportation lanes. storage. for example. Carriers and stock transfer points are only used in transportation planning. supplier location. manufacturing plant. transportati on zones. a customer. a location can represent a distribution center. for example. MRP areas. in the form of a location hierarchy.
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 .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. resource. product.
Stock .Supply Network Planning .Production .Supply chain costs Fixed Network Information .Transportation .Demand Planning ? SAP AG 2001 APO Master Data • • • • • Products Resources Locations Transportation lanes Production process model ?? Queries ?? Key facilitate the planning function.Demand . © SAP AG AP010 3-1 0 .Production network Planning Results .Production Planning .Capacity load Alert Monitor APO Applications . Performance Indicators provide feedback on actual performance.Information Retrieval Business Information Warehouse • Key Performance Indicators .Transportation network .Service level .ATP .
Data pertaining to the various planning and execution processes such as demand planning or product planning is collected. you could set a goal to reduce the percentage of damaged goods by 5%. Based on that information. ?? For © SAP AG AP010 3-1 1 . After implementing the steps necessary to reach the goal.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. a KPI could tell you what percentage of your products were damaged during production. and transformed into physical or financial information that can be used to compare results and thus measure performance. example. you would again launch a KPI query to check your progress. measured.
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.tailor-made to your company . you have the option to defin e specific KPIs .in the Business Information Warehouse and to assign them to the Supply Chain Cockpit. In addition. © SAP AG AP010 3-1 2 .
Compare results of KPIs 3. measurement is a way to determine if your business has improved or not. 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. Identify gaps and improve 1. use of metrics to measure performance is a complex business process that requires careful planning. Measure performance using KPIs 2. analysis and a thorough knowledge of the supply chain.Key Performance Indicators 0. Identify key performance indicators (KPIs) Measure performance using KPIs 5. Appendix 1: The SCOR Model.doc. refer to the SCC1_E. APO: Plan & Optimize 4. For more information on measuring supply chain performance. ?? Performance ?? The © SAP AG AP010 3-1 3 .
Supply Network Planning you have the option to display either database or dynamic alerts. 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. when the resource is not sufficiently load ed (less than 50% utilization). ?? The ?? You © SAP AG AP010 3-1 4 .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. target days' supply excess/shortfall. backlog. Typical alerts are: When the resource is too overloaded (over 100% utilization of capacity). shortfall in safety stock. You will be informed in time so that you can take the necessary precautions. Alert Monitor in Supply Network Planning enables you to display and remove alerts for resources and location products. while the dynamic alerts reflect the current planning situation. Every situation that has to be adjusted in planning is an exception. The database alerts show the planning situation as it was at the time of the planning run. As planner or manager you will be prepared for any problems that occur.
can call the Alert Monitor from the Supply Chain Cockpit. 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.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 ? SAP AG 2001 ?? The Alert Monitor in Supply Network Planning enables you to display and remove alerts for resources and location products. from the menu or directly from interactive planning. target days' supply excess/shortfall. when the resource is not sufficiently loaded (less than 50% utilization). Right-click on the alert to go directly to the problem resolution screen. Typical alerts are: When the resource is too overloaded (over 100% utilization of capacity). 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. customer -specific alerts. backlog. ?? You ?? You © SAP AG AP010 3-1 5 . shortfall in safety stock.
capacity overload pertains to a specific planning version while Demand Planning alerts are general. are displayed in the Monitor. 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. Alert Monitor differentiates between alerts in a specific planning version and alerts in general. The alert types must be prioritized and assigned to the various APO applications. This ensures that the traffic lights in the monitoring slot in the control panel go on. For example. For example. you can assign the alert type to the application. however. Both types of alerts. you want to show an alert in the SCC. but others can be assigned to DP and PP/DS as well. ?? The ?? If ?? Since ?? Each © SAP AG AP010 3-1 6 . some alerts apply only to SNP. Lights indicate that at least one alert of that priority type exists.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 ? SAP AG 2001 Business Information Warehouse ?? APO's monitoring component comes equipped with a selection of 20 alert types ranging from product shortage to various capacity overloads.
?? The © SAP AG AP010 3-1 7 . 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.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 ? SAP AG 2001 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. an infosource. an extraction structure for the planning area. and an SAP RemoteCube that reflects the liveCache data.
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 ? SAP AG 2001 © SAP AG AP010 3-1 8 .
locations and resources for which he/she is responsible via the Cockpit. Query the stock/requirements list for product T-F225 at location 2400. The group number ## that you need for the following exercises is on your monitor. Which distribution centers supply the plants 1000 and 2300? 1-2 Display the global master data for the product T-F225 and the master data for the product T-F225 in the distribution center 2400 in the Supply Chain Cockpit. 1-1 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.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 company’s supply chain planner can procure all necessary information about the products. 1-3 © SAP AG AP010 3-1 9 .
Enter the SDP alert profile PUMP. go back to the Cockpit and refresh the alert situation. Find out the extent that Product T-F2##. Save the profile. 1-5 Open your user settings profile directly from the Cockpit. Are alerts displayed? How can you process the alerts? 1-6 Evaluate the aggregated historical data for the product T-F2##.1-4 Query the transportation lanes permitted for the product T-F225 . and in Sales Organization 1000. © SAP AG AP010 3-2 0 . with Sold-to party 1000. Log on to the APO system using the Business Information Warehouse (BW) Analyzer and open the query SALES DATA for the SALES InfoCube. contributed to sales in the past few months.
The group number ## that you need for the following exercises is on your monitor. 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 company’s supply chain planner can procure all necessary information about the products. Enter the logical view PUMP and select “Logical view”. locations and resources for which he/she is responsible via the Cockpit. The transportation lanes show you that the plants 1000 and 2300 supply the distribution centers 2400 and 2500.Solutions Unit: Supply Chain Cockpit Topic: Display and Query At the conclusion of this unit. you can define the zoom area using the left mouse button. If you want to restrict the area further. Which distribution centers supply the plants 1000 and 2300? Supply Chain Monitoring ? Supply Chain Cockpit Enter the input data and select “Use”. 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. © SAP AG AP010 3-2 1 . Select the “Fit to objects” button on the left above the graphic to adjust the objects.
© SAP AG AP010 3-2 2 . 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. Are alerts displayed? How can you process the alerts? Settings ? User profile Enter the SDP alert profile PUMP in the Alert Monitor tab.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. Press the “Refresh alerts” button and the exception messages are shown in red. Enter the SDP alert profile PUMP. Double-click here to go directly to the Alert Monitor and right-click to process the alerts. Save the profile and use the green arrow to go back to the Cockpit. 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 . go back to the Cockpit and refresh the alert situation. 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. Save the profile.
year/month. Find out the extent that Product T-F2##. © SAP AG AP010 3-2 3 . Right-click on the field next to APO product to restrict the evaluation for your product T-F2## via “Select filter value”. with Sold-to party 1000.1-6 Evaluate the aggregated historical data for the product T -F2##. and press the “Open” icon in the Business Explorer. 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. contributed to sales in the past few months. Log on to your APO system. activate the macros. you can drilldown the evaluation according to months by choosing “ Filter and drilldown according to” cal. and in Sales Organization 1000. Select the SALES DATA query and press OK. Log on to the APO system using the Business Information Warehouse (BW) Analyzer and open the query SALES DATA for the SALES InfoCube. By right-clicking on the SALES key figure. Call up the BW Analyzer. Expand the SALES PLANNING info area and the SALES infocube. You are given an aggregated view of the invoiced sales quantity and invoiced sales value of the three sales organizations.
Demand Planning (DP) Contents: ? Demand Planning Tasks and Functions ? Integration with the Business Information Warehouse (BW) ? Forecast Toolbox ? Lifecycle Planning ? Promotions ? SAP AG 2001 © SAP AG AP010 4-1 .
? SAP AG 2001 © SAP AG AP010 4-2 . you will be able to: ? Explain how the Business Information Warehouse is integrated with Demand Planning. ? Create a simple sales forecast. ? Describe the tasks of Demand Planning. and release the results to Production Planning.Unit Objectives At the conclusion of this unit. ? Define various forecasting strategies.
Course Overview Diagram 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 4 6 Scheduling 7 Planning/Vehicle Scheduling 8 8 Global Available-to-Promise 9 9 Conclusion Transportation ? SAP AG 2001 © SAP AG AP010 4-3 .
And use a consensus-based approach to consolidate the demand plans of different departments. and user-defined forecast models. and forecast results. The result of APO Demand Planning is the demand plan.Business Scenario ? The Precision Pump company will implement APO Demand Planning and use it to execute their monthly finished product forecasting. User-specific planning layouts and interactive planning books not only allow you to include different departments. based on many different causal factors. you can also use them to include other companies in the forecast creation 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. powerful. ? SAP AG AG 2001 ?? Demand Planning is a complex. ?? Demand © SAP AG AP010 4-4 . and flexible tool that supports your company's demand planning process. ? Consistent planning allows you to enter the forecast data on different planning levels and automatically consolidate the data in the master forecast.Create forecasts from sales history. You can use forecast overrides and promotions to add marketing intelligence and management adjustments. With APO Demand Planning you can use statistical forecasting methods and advanced macro techniques to do the following: . The seamless integration with APO Supply Network Planning supports an efficient Sales and Operations Planning (S&OP) process. .Test predefined.
Life cycle definition is also covered in like modeling. modeling" refers to the forecasting of new products using historical data from old products.Advantages of Demand Planning in APO ? Global server with a BW infrastructure ? Integrated exception handling. Mails can be sent automatically. following statistical procedures are all available for forecasting. Seasonal model. ?? Macros can be used to perform complex calculations. Croston method with exponential smoothing. Trend model. 'like' modeling ? Collaborative planning via the internet ? Sales Bills of Material (BOMs) ? SAP AG 2001 ?? 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. and status automatically queried. and to define conditions and exception ?? In the S&OP scenario. variable drill down ? Extensive forecasting technique ? Promotion planning and evaluation. Deviations are identified automatically and reported to the planner. messages (alerts). 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 © SAP AG AP010 4-5 . the feasible production plan from SNP or PP/DS is compared with the original demand plan. creation of user defined alerts ? Integration with Production Planning (S&OP scenario) ? Main memory based planning ? Flexible navigation in the planning table. External forecasting procedures can also be linked to this. Trend and Seasonal model. Linear regression. Constant model. and Causal models with multilinear regression.
g. manufacturer forecast is based on a distributor’s sales history. ? ? Multiple sources of demand plan data (e. and suppliers over the Internet (Collaborative Demand Planning). price. and/or point of sales direct from retailer. promotions. or point of sale (POS) data direct from retailers Managing all significant factors that influence demand Tracking and management of product lifecycles ? ? ? SAP AG 2001 ?? The complexity and competitive nature of today's business environment requires organizations to consider many variables when developing a sales and operations plan. R&D expenditures. © SAP AG AP010 4-6 .) ? ? Demand data can be exchanged with sales organizations. advertising expenditures.) ? ? Factors influencing demand (sales force size. customers. seasonality. forecasts from customers.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.
... data structures in BW and APO are identical. order. ? SAP AG 2001 ?? SAP's ?? If Business Information Warehouse (SAP BW) is contained in the APO scope of supply and is completely integrated with it. ?? As © SAP AG AP010 4-7 . it is a good idea to set up an independent BW server.. you can also evaluate APO data with the BW frontend. and shipment data ? Syndicated POS data ? Cost information ? . Costs. .APO Integration . Price. Forecast Business Information Warehouse Demand Planning specific data ? ? ? ? ? Forecast & planning scenarios Causal factors Lifecycle patterns Seasonal patterns Promotional patterns Central Data Pool ? Summarized data ? POS. you are going to execute extensive reporting. and only transfer the data that is relevant for planning to the APO system.Business Warehouse Demand Planning Forecast Reporting APO Data Mart Sales history.
and legacy systems.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 ?… ? SAP AG 2001 ?? 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. ?? Marketing ?? Aggregated © SAP AG AP010 4-8 . 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. and use a consensus -based approach to consolidate the results. Excel.
drilling up and down. W 3 8 W39 W40 W41 time sequence 203 124 Material Product Groups ? SAP AG 2001 ?? Planning supports online simulation in multiple planning scenarios.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. ?? Consistent © SAP AG AP010 4-9 . planning means that planning data on all planning levels can be consistently held (automatic aggregation and disaggregation). consistent planning throughout your enterprise (top down. middle out. aggregation and disaggregation. or bottom up). middle out. W 3 2 W 3 3 W 3 4 W 3 5 W 3 6 W37 Sept. bottom up) Aug. and slice-and-dice techniques.
the Shuffler. where you choose the InfoObjects to be planned. ?? The ?? In © SAP AG AP010 4-1 0 .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 . selection profile displays all the selection IDs wh ich have been assigned for the planner. you choose your planning books.The Planning Table Selection APO . and views. and load existing selections. The planner can access commonly used selections quickly using the selection IDs.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 ? SAP AG 2001 ?? The ?? The ?? In APO modules Demand Planning and Supply Network Planning have a standard user interface. the data view area. It consists of two significant components: the selection range and the work area. selection range (Shuffler) is the window. To open the Shuffler. you can save commonly used selections. You can define a filter for available planning books and views. choose the symbol selection window.
The extreme flexibility of the macros allows the planner to model a planning environment based on individual business tasks. © SAP AG AP010 4-1 1 .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 ? SAP AG 2001 ?? Macros perform complex calculations quickly and accurately.
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 ? SAP AG 2001 ?? The product portfolio of a company covers a variety of products in different stages of their lifecycle and with different demand types.Statistical Toolbox ? Univariate Forecasting ? ? Moving average Models (constant. The system allows you to choose the best method for a specific demand type. method allows you to model "lumpy" (sporadic) demand. with this technique you combine two or more methods. ?? APO ?? Composite ?? Croston's ?? The © SAP AG AP010 4-1 2 . statistical forecasting toolbox provides all the features you require to efficiently create accurate forecasts. forecasting extends the idea of pick-the-best. including everything from data analysis via time series models through multiple linear regression. seasonal trend. Demand Planning offers a "toolbox" of proven forecasting methods.
you can use either a "like" profile. product's lifecycle consists of different phases: launch (phase-in). the system adjusts baseline (original) forecasts. the system adjusts history input values. the phase-in profile period is within the future horizon of the specified master forecast profile. growth. displays the adjusted values in the original history and corrected history key figures. ?? For ?? If ?? If © SAP AG AP010 4-1 3 . and writes the adjusted values in the corrected history. maturity. This process models launch. and discontinuation (phase-out).Lifecycle Management & Like Modeling Actual data of the old product Sales Forecasting of the new product Like Lifecycle Time ? SAP AG 2001 ?? You ?? A use lifecycle planning and "Like" modeling to forecast the launch (phase -in) and discontinuation (phase-out) of a product. and writes the adjusted values in the corrected forecast key figure. a phase-in profile. or any combination of these. or a phase-out profile. the phase-out profile period is within the history horizon of the master forecast profile. growth and discontinuation phases. all characteristic value combinations.
One suc h technique is multiple linear regression with or without a trend or seasonality.Promotion Planning Forecast simulation Sales Total sales: Profit Total profit: Promotion 1 Promotion patterns ’95 ’96 -10% Price Planner Planner ’97 ’98 Quantity ? SAP AG 2001 ?? Promotions ?? In can have a major impact on consumer behavior. and acts of nature. or repeated events such as quarterly advertising campaigns. There are several techniques available to determine the impact of a historical promotion. free-standing inserts. competitors' activities. Examples of events that also have an impact on consumer behavior are upward/downward economic trends. and so on. APO Demand Planning. such as the millennium. A copy function in the promotion catalog also supports "like" modeling of "like products. market intelligence. uplifts can be defined in units or percentages by common promotion patterns. such as hurricanes. A promotion pattern can be archived in a promotion catalog. Promotion Planning to record either one-time events. The effect of a promotion pattern that occurred in the past can be automatically detected using sales history or estimated by the planner." "like regions". it can therefore be reused if a promotion of the same type is repeated. you can plan promotions or other special events independently of the rest of your forecast. ?? Use ?? Promotional © SAP AG AP010 4-1 4 . and tornadoes. Other examples of promotions are trade fairs. coupons.
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 ? SAP AG 2001 ?? Once the various stakeholders in the forecast have reached a one-number. or PP/DS. ?? You release the ?? This release causes planned independent requirements to be created in the order liveCache. you release the demand plan as a planned independent requirement. Macros are used to analyze the differences between the demand plan and feasible quantities and alerts are generated if large differences occur. demand plan from Demand Planning (DP) via either the demand planner or the SNP planner. feasibility of the planned sales quantities in SNP or PP/DS has been checked. and sourcing are carried out for the complete supply network. the results can be transferred back to Demand Planning. capacity planning. consensus plan. ?? After © SAP AG AP010 4-1 5 . These anonymous demands form the basis of SNP. where BOM explosion.
? SAP AG 2001 © SAP AG AP010 4-1 6 .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.
Check that the correction is automatically added to the demand plan. under “Show”. The seasonal pattern that occurred in the past has been extrapolated into the future. Version 000 is already displayed automatically. and on the right-hand side enter your product T -F2##. In the next row.Product once again. 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. enter APO . 1-3 For three months from now enter a manual correction of 100 pumps. and includes input from regional sales managers. Go back to the planning table. 1-1 Go to Demand Planning.Exercises Unit: Demand Planning Topic: Interactive Planning At the conclusion of this exercise. © SAP AG AP010 4-1 7 . This plan uses a statistical forecast based on historical data. select “APO PRODUCT”. 1-2 Perform a univariate forecast and analyze the graphic results. Load the data for the product into the planning table. Save your plan. Open the selection window and.
© SAP AG AP010 4-1 8 . 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 2400.1-4 Release your demand plan to Production Planning. Use the “RELEASE” variant. and enter your product T-F2## and the horizon.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.