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APO& SNP Overview1

APO& SNP Overview1

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Published by: ganesh_paikk on Mar 21, 2012
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Course Objective

• • •

Understanding of SAP APO. Understand the underlying components of Demand Planning (DP) & Supply Network Planning (SNP) Provide a high level understanding of the interfaces between DP, SNP

and other APO modules as well as SAP R/3.

SAP APO Architecture
Available To Promise Supply Network Planning

Demand Planning




SC Cockpit


APO Solvers

Application Link Enabling
Model Generator, Mapping, Connectivity OLTP



Legacy OLTP

Non R\3 OLTP

Non R\3 OLTP

Indicators External Data (e.g. POS) Demand Planning Sales Orders Manufacturing Execution Inventory Management Global ATP Production Planning and detailed Scheduling Supply Network Planning Deployment .APO Applications and Data Flow R/3 APO SAP-BW Historical Data Key Perform.

Integration to APO .

Advantages of APO .

ICH.Master Data versus Transaction Data Master Data What is it Static data used during planning Products.APO. Planning relevant visible in APO. Where does it reside . Locations Transaction Data Data dynamically created through planning and execution Forecasts. EM Captured information flow • Data created either in planning or execution systems. Production Lines. Sales orders Examples Used for Mapping organization to the system • Data shared between R/3 and SCM • Is shared between SCM components .

Mapping of Master Data Objects R/3 R/3 master data Plant Customer APO APO master data Location Product Resource Production process model Transportation Lane Vendor Material master Work center Routing and Bill of material Special Procurement Key .

Purchase requisitions Planned orders Production Orders Purchase Orders Supplies . (FA) PurReqs (AG) PlOrd.Mapping of Transaction Data Objects R/3 R/3 transaction data Sales orders APO APO transaction data Order category SalesOrder (BM) FC req. (AI) Prod Ord (AJ) PchOrd (BF) Stock (CC ) Planned Ind. Reqmts.

.Master data assigned to model Planning Version 000 Planning Version n Integrated . Planning Model n .version 000 dependent transactional data -version 000 dependent master data Non-Integrated .Models and Planning Versions Legacy R/3 OLTP Master Data APO Master Data (model independent) Planning Model 000 .version n dependent transactional data -version n dependent master data SNP Output SNP What if output .Master data assigned to model ….

Planning Books and Data Views Data views Planning books Planning areas Version 000 Model 000 Version A Version B Model 1 APO master data .

cross-plant planning  Prioritization of demands. supply optimization  Result: Feasible plans  SAP AG 2001 .Supply Network Planning Supply Network Planning Scenario Demand Plan Supplier Plant DC Customer  SNP plans the material flow along the supply chain  Mid.APO . finite.to long-term.

where to make/move it. how much to make/move and when to make/move it .Supply Planning Objective: To produce effective supply plans which simultaneously reduce costs/assets and improve customer service by dramatically improving the ability to process/incorporate all relevant supply chain information Production Constraints • Lot sizing rules • Equipment capacity • Labor Supply Chain Cost Info • Production cost per location • Transportation costs Demand • Forecast • Orders Supply Planning Optimal Supply Plan • Maximize order fill rates • Minimize inventory levels • Minimize costs Material Constraints • Material availability • Supplier lead times Distribution Constraints • Distribution lead times The supply plan specifies what to make/move.

inventory and transportation Synchronize activities and plan material flow throughout the supply chain . manufacturing.Supply Network Planning • • • • • • A planning approach to create tactical plans and sourcing decisions that takes the complete supply network into consideration Model the entire supply network and related constraints Create rough quantity based. cross location production and distribution plan with individual rough bill of material (BOM) and routings Integrate purchasing.APO . distribution and transportation in one consistent model Create feasible plans for purchasing. manufacturing.

SNP Process Set up master data Set up supply chain model SNP configuration Release demand plan to SNP Release Supply plan Perform SNP Planning Run Finalize SNP plan Run Alerts/Check plan Solve problems .

storage and transportation resources Simultaneous production planning and distribution resource planning Planning of critical components on bottleneck resources Cross-plant optimization of the resource load Prioritization of demand and supply Collaborative procurement planning via the internet .Benefits of Supply Network Planning • • • • • • • Multi-site mid-term rough-cut planning Simultaneous material planning and finite capacity planning of production.

SNP Planning Methods (Solvers) • SNP Heuristics • Un-constrained • MRP Like • Capacity leveling Production plant Manufacturer DC Customer DC Supplier plant • Supplier Capable to Match (CTM) : Supply to Demand Match WH • Feasible solution • Matches demand to available supply via production capacity and transportation capability check • SNP Optimization: cost-based optimization • Feasible solutions • Optimization of production. transportation. and inventory costs .

Day . Day 4. Day 5. Day 3.SNP Heuristics • • • • MRP II concept (planning against infinite capacity) Rapid multi-site planning Does not necessarily develop a feasible plan Additional step required for capacity leveling Capacity load 200 % 100 % 1. Day 2.

Supply feedback to Demand Planning Forecasts Customers orders Control costs Penalty costs Costs $ Goal: Minimize costs •Production •Transportation •Procurement •Storage •Safety Stock •Non-Delivery •Delay . Inventory levels Flexible Constraint Definition  capacity constraints  material constraints  transportation constraints  ….SNP Optimizer Optimization Sourcing Production & Purchasing requirements.

Capable to Match (CTM) • • • CTM is a rules-based. multi-site planning method that takes finite considerations of production resources Extensive prioritization capabilities control the planning process Satisfies prioritized customer requirements with multi-site capacity leveling when there is a capacity overload .

SNP Capable To Match (CTM) • • • • • • Simultaneous material and capacity planning Categorization of demand and prioritization of supply Considers costs • Transportation • Production Capacity load Considers priorities • Product • Location • Product/Location • Transportation Lane 100 % Considers Quotas Rule definition possible 1. Day 3. Day 4. Day . Day 5. Day 2.

CTM Planning Scenario .

Integration of Supply Network Planning (SNP) with Demand Planning (DP) & Production Planning & Detailed Scheduling (PP/DS) Sales History Demand Planning (Batch & Interactive Forecastin g) Forecast Sales Demand (OLTP) (R3) Stocks Constrained based SNP plan Market Info Supply Network Supply Planning Network Planning (Reads Network Demandfeasible) Rough Cut Location Procure mnet plan Release to PP/DS Rough cut Location Producti on plan .

Thank You .

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