Master Guide

SAP® Supply Chain Management 2007 powered by SAP NetWeaver
Using SAP® SCM 5.1, SAP® ERP 6.0, and SAP NetWeaver® 7.0 (2004s)
Target Audience System administrators Technology consultants Document Version 1.50 – February 2008 Material Number 50083516

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........ 28 4....................................9 2.......1..........15 3............................................................................9 2............3........................................................................................................................................................18 4.......................... 20 4..4....................... 11 2...............................3 Freight Costing........... 11 2.............................................................1 Demand Planning & Forecasting ...........................4...................................................................................................13 3 System Landscape.4 Available to Promise...........................................................25 4................................................. 23 4.3...................1 History of Changes .......................... 10 2................................................3 Service Parts Planning ..............................11 2........2 Related Information .....................3.......................... 26 4................................................ 28 4.31 4.. 27 4................ 19 4.....5 Pull Deployment ............................... 31 4 February 2008 .............................................................................1 The Main SAP Documentation Types....7 1.........................................................................3....................................2 Stocking List Determination.................3.........1............. 21 4....3...........27 4....................................1 Cross-Phase Documentation ......... 26 4...................4 Distribution Requirements Planning .........2 Overall Installation Sequence and Information.............................4 Upgrade.2 Safety Stock Planning...........................2............................................ 30 4.........................2 Transportation Execution.....................13 2..........................................................18 4......................................................................8 2 Getting Started..................................5 Important SAP Notes .....................................1 Demand and Supply Planning ........................ 22 4...............1 Availability Check...........................................................................7 Parts Monitoring.1.....................4 Supply Network Planning ..................4...............................1 Possible System Landscape.....................4....1..................................................1 Parts Forecasting ............1..........................1 Supply Network Planning Heuristic ............................... 25 4.2 Supply Network Optimization......................................Master Guide: SAP SCM 2007 Contents 1 SAP Supply Chain Management....2 Implementation....2......................16 4 Business Processes of SAP SCM ......................1....3 Safety Stock Calculation.................6 Inventory Balancing ..............1.......................3 Production Operation ......... 29 4.......................4 SAP Solution Manager........ 21 4......1...................... 11 2.....................................................................3 Multilevel Demand and Supply Matching...................................3 Related Master Guides .....................................3 Distribution Planning ....... 29 4.........................................................................3.... 30 4.....1.....................12 2.............1............................2 Transportation ..1...................................................................... 24 4......15 3............2.........1 Transportation Planning ...........................................

.1....................7.....7..........44 4.3 Production Planning (Repetitive Manufacturing) CTO in ERP.38 4.5............................ 53 4.......49 4....... 35 4....... 58 5....6 Order Fulfillment .........................Master Guide: SAP SCM 2007 Contents 4...............5 Production Scheduling with Production Campaigns.......................... 41 4......7.........4..............................7..............2 SAP SCM Optimizer ........... 39 4..6 Production Planning (Discrete Manufacturing) MTO in SCM .....................1 Production Planning (Process Manufacturing) MTS in ERP...............7...5.4 Production Planning (Discrete Manufacturing) ETO in ERP.........................1 Production Planning (Repetitive Manufacturing) MTS in ERP..................................2 Production Planning (Discrete Manufacturing) ....6 Production Planning (Repetitive Manufacturing) CTO in SCM ..... 36 4..5 Production Planning (Repetitive Manufacturing) MTO in SCM..............2.. 33 4................................ 32 4................34 4...............7.............2 Manufacturing Execution (Discrete Manufacturing) ..2....................................7 Manufacturing (Planning & Operations) .................................7.5 SAP SCM ..7.................1 Production Scheduling with Capacity Reservation.7................ 41 4........................................ 44 4.......3 Production Planning (Repetitive Manufacturing) ....... 58 5.....6......2 Supersession... 39 4............... 57 5.........35 4................ 45 4.........................1....... 38 4.......8 Production Planning (Discrete Manufacturing) ETO in SCM.....................................2........................1 SAP Supply Chain Management Server (SAP SCM Server) ......7.4...............................................2 Technology Components ...4..57 5.7..............6.3.................... 54 4............... 34 4.....2.....................................................7.................2 Production Planning (Repetitive Manufacturing) MTO in ERP ..1 Manufacturing Execution (Process Manufacturing) . 57 5......................57 5.......3 Production Scheduling Optimization ..1.5 Production Planning and Detailed Scheduling (PP/DS) ............................... 58 5.............2 MRP-Based Detailed Scheduling ....................... 42 4....................................................1 Application Components.............3....1...7..................7.....7.........4 Production Scheduling with Block Planning.. 58 5....7.4.....7...................3 Manufacturing Execution (Repetitive Manufacturing)................................................4 SAP Event Management ............7.....................3........ 37 4.................. 43 4..... 35 4...................................3..................... 49 4.........31 4.......................1.....3.......................................7.............4 Production Planning (Repetitive Manufacturing) MTS in SCM .................7.........5............7..7....7........ 50 4....................... 51 4......................3 Production Planning (Discrete Manufacturing) CTO in ERP .........1....5................ 47 4......5 Production Planning (Discrete Manufacturing) MTS in SCM.7............2 Production Planning (Discrete Manufacturing) MTO in ERP.1.....4............7....... 48 4.....6 SAP Supply Network Collaboration (SAP SNC)...............................0. 55 5 Software Components Overview ............1 Production Scheduling (Manual Scheduling)....... 46 4.....................1.............................................2 Production Planning (Process Manufacturing) MTO in ERP ..............7................1 Production Planning (Discrete Manufacturing) MTS in ERP ...2....33 4.................2...........3.......................7.............. 47 4.1.......7 Production Planning (Discrete Manufacturing) CTO in SCM......................................7...................7...................7................... 51 4..........................4 Production Scheduling..........2...............2 Production Scheduling with Scheduling Heuristics ........3 SAP ERP 6........4 Production Planning (Process Manufacturing) MTO in SCM..3 Production Planning (Process Manufacturing) MTS in SCM. 32 4......5 Manufacturing Execution .................53 4................................1 Production Planning (Process Manufacturing)......... 52 4.......Web Communication Layer (SCM WCL) ..............1 Sourcing.......2.........5........1...........59 February 2008 5 ............7.......... 40 4.....

................ 59 5................1 SAP Exchange Infrastructure (SAP XI)... 59 6 Software Component Matrix ....Master Guide: SAP SCM 2007 5.......60 7 References .............2.................................................................................2.......................................................................................................65 6 February 2008 ........2 SAP liveCache (SCM LC) .....

to set goals. This SAP SCM Master Guide provides a central starting point for the technical implementation of SAP SCM. These capabilities are summarized below. February 2008 7 . and to forecast. In addition. It contains all the information for the implementation of SAP SCM business processes.com/instguides.1 SAP Supply Chain Management 1 SAP Supply Chain Management SAP Supply Chain Management (SAP SCM) can help your organization transform a linear supply chain into an adaptive supply chain network that enables you to access the knowledge and resources of your peers. you can easily monitor and respond to demand by using a supply chain network in which distribution. and other resources. materials. and logistics are integrated into real-time planning processes. to quickly adapt to changing market conditions.com/bmet SAP Business Maps IndustrySpecific Maps Supply Chain Management. SAP SCM provides companies with coordination and collaboration technology to extend their operations beyond corporate boundaries. and to remain customer-focused. SAP SCM enables adaptive supply chain networks by providing companies with planning and execution capabilities for managing enterprise operations. To facilitate the implementation and upgrade process. and schedule time. Supply Chain Planning and Collaboration SAP SCM enables you to model your existing supply chain. Supply Chain Visibility Design and Analytics By giving you visibility across your extended supply chain. optimize. It also enables collaboration and analytics. so you can monitor and analyze the performance of your extended supply chain. transportation. Supply chain planning functionality enables you to maximize your return on assets and to ensure a profitable match of supply and demand. With SAP SCM. You can choose from among several generic business processes and find all the information that is relevant for the technical implementation of a specific business process in that section.sap.sap. Upgrade information for business processes is available in the Upgrade Master Guide for SAP SCM which you can find on SAP Service Marketplace at service. SAP SCM consists of the following business process groups: Demand and Supply Planning [page 18] Transportation [page 25] Service Parts Planning [page 27] Available to Promise [page 31] Production Planning and Detailed Scheduling (PP/DS) [page 31] Order Fulfillment [page 33] Manufacturing (Planning & Operations) [page 34] You can find an overview of the SAP SCM functionality in the solution map located at service. Supply Chain Execution SAP SCM enables you to carry out supply chain planning in an efficient and cost effective manner. SAP SCM allows you to perform strategic as well as day-to-day planning. this document is organized by business processes and business process groups.

Master Guide: SAP SCM 2007 The business processes that we present here serve as examples of how SAP software can be used. see the Scenario Component List Viewer on SAP Service Marketplace at service.30 1. They are only intended as models and do not necessarily operate as we describe them in your customer-specific system landscape. see the sectionThe Main SAP Documentation Types in this guide.1: Installation Guide added 8 February 2008 . This Master Guide provides only one way to implement each business process using SAP SCM 5. The Master Guide is a planning tool that helps you to design your system landscape and refers you to more detailed documentation such as the following: Installation guides for single software units SAP Notes Configuration documentation SAP Library documentation For a general overview of the available SAP documentation.sap.com/instguides Make sure you have the latest version of the Master Guide by checking SAP Service Marketplace right before the installation. Use the Master Guide to get a technical overview of SAP SCM and its scenarios.1.20 1. which you can find on SAP Service Marketplace at service.com/instguides. For other ways to implement the business processes.sap. The following table provides an overview of the most important changes that were made to the latest versions.sap. 1. Check your requirements and systems to determine whether these processes can be used at your site and be sure to test all processes thoroughly to ensure that they work as desired in your environment.10 1.50 Important Changes First version Additional information about enterprise services System landscape for process … updated Important SAP Notes updated.1 History of Changes The Master Guide is updated on a regular basis on SAP Service Marketplace at: service.com/scl. information about enterprise services updated SAP Note 1144099 added Reference to SAP Event Management – WCL 5. Master Guide Version 1.40 1.00 1. The starting point for the technical upgrade of your SAP solution is the Upgrade Master Guide.

com/instguides. 2. operating and upgrading your SAP solutions. We strongly recommend that you use the documents available here because they are regularly updated. In References [page 65]. you can find an overview of all required documentation referenced in this Master Guide. Business Processes of SAP SCM [page 18] contains the following information for each business process: A short overview of the business process Minimal requirements for the system landscape A software component matrix for each business process that shows which components the business process uses and whether the component is mandatory or optional References to further information about the business process Software Components Overview [page 57] describes all industry-specific software components that are part of SAP SCM.2 Getting Started 2 Getting Started Below is a summary of the sections of this guide that you can refer to during the implementation of the business processes. You can find the most current information about the technical implementation of SAP SCM and the latest installation and configuration guides on SAP Service Marketplace at service. implementing. Depending on the specific business process. System Landscape [page 15] provides an overview of a possible system landscape and also provides installation information. The Software Component Matrix [page 60] provides the information about which business processes use which component and whether the corresponding component is mandatory or optional. Although strongly related to each other. February 2008 9 .1 The Main SAP Documentation Types Several documents have been created to assist you in installing. Getting Started [page 9] contains valuable information about using this document and related information (documentation and SAP Notes) crucial to the installation and upgrade. The following figure shows an overview of the most important documentation types that you need in the various phases in the life cycle of an SAP solution. the different documentation types help you solve problems at different levels in different solution phases. different installation and master guides are required during the business process implementation. The Solution Master Guide is the first document you obtain.sap.

sap.com Additional Information Glossary (direct access) or Terminology (as terminology CD). The current version of the Security Guide is located on SAP Service Marketplace at service.Master Guide: SAP SCM 2007 Documentation types in the software life cycle Implementation Operation Upgrade SAPterm SAP Library Master Guide Component Installation Guide Security Guide Configuration Documentation Implementation Guide (IMG) Solution Management Guide Upgrade Master Guide Component Upgrade Guide Release Notes Delta and Upgrade IMG 2. Documentation of enterprise services is located on SAP Service Marketplace at service. It is located in the SAP Easy Access menu of the SAP system under Tools Customizing IMG.1 Cross-Phase Documentation SAPterm is SAP’s terminology database. It contains SAP-specific vocabulary in over 30 languages.sap. This document contains general guidelines and suggestions about system security. It is located on SAP Help Portal at help. The current version is located in the SAP Help Portal at help. as well as many definitions and glossary entries in English and German. In the SAP system. The Implementation Guide (IMG) is a tool used to configure the SAP system to meet customer requirements.com. The SAP Library is a collection of function.com/swdc Download Installations and Upgrades Entry by Application Group SAP Application Components SAP SCM SAP SCM 2007 Documentation. Other technologies and individual applications have a Security Guide of their own.com/securityguide. Its structure and documentation are component-oriented. use Transaction STERM.1.sap.sap. The Security Guide describes the settings for a medium security level and offers suggestions for raising security levels. 10 February 2008 .and process-oriented documentation for SAP components. A collective security guide is available for the SAP NetWeaver technologies like SAP Web Application Server (SAP Web AS).

The Component Upgrade Guide describes the technical upgrade of an SAP component.sap.1. as well as documentation. It also refers to other documents.com/instguides. there may be several Business Scenario Upgrade Guides or a Solution Upgrade Guide for earlier shipments of the Business Scenarios of an SAP solution. You can find the Component Installation Guides for the different components on SAP Service Marketplace at service.com/instguides. and so on.sap. The guide refers users to the tools and documentation needed to carry out various tasks. The current version is located on SAP Service Marketplace at service. taking into account the combinations of operating systems and databases. The current version is located on SAP Service Marketplace at service. The current version is located on SAP Service Marketplace at service.1. transactions. 2.4 Upgrade The Upgrade Master Guide is the starting point for upgrading the Business Scenarios of an SAP solution. and tests. Release notes are documents that contain short descriptions of new features or changes in an SAP component since the previous release. Release notes about ABAP developments enable the SAP system to generate delta and upgrade IMGs.2 Implementation The Component Installation Guide describes the technical implementation of an SAP component. for example the SAP Library.3 Production Operation The Solution Operation Guide is the starting point for operating an SAP solution. execution. and the Component Management Guides. master data maintenance. taking into account the combinations of operating systems and databases. Instead of an Upgrade Master Guide. such as monitoring.com/instguides. 2. the Master Guide. 2. It provides scenario-specific descriptions of preparation. It does not describe any business-related configuration.sap.sap. It does not describe any business-related configuration.2 Getting Started 2. and followup of an upgrade. such as the Component Upgrade Guides and SAP Notes.2 Related Information The following list contains links to crucial information for implementing SAP SCM.sap. one of its main functions being the configuration of SAP solutions and Business Scenarios.com/pam February 2008 11 .sap. backup/restore. List of Related Documentation Content Information about technical and release planning Location service. The Configuration Documentation is contained in the SAP Solution Manager.com/instguides.com/releasenotes or in the SAP Easy Access menu of the SAP system under Help Release information.1. It contains IMG activities. It also refers users to other documents. SAP Solution Manager is a tool with various functions. The current version is located on SAP Service Marketplace at service. transports.

sap.0 (2004s) Documentation on SAP Help Portal Information about Support Package Stacks.sap. The documents listed below contain detailed information about the relevant components: List of Related Master Guides Content SAP NetWeaver 7. latest software versions and patch level requirements SAP Event Management – WCL 5.sap.1 Master Guide SAP EWM 5.com/instguides SAP Business Suite Applications SAP SCM SAP EM Using SAP EM 5.sap.1: Installation Guide 2.com/sp-stacks service.sap.sap.sap.com/securityguide service.com/instguides SAP NetWeaver Release 2004s Installation Master Guide service.Master Guide: SAP SCM 2007 issues on SAP components Information about the latest version of installation and upgrade guides for SAP components Information about SAP Notes Information about released platforms Information about network security – SAP Security Guide Information about network integration Information about high availability Information about creating error messages Performance Map Information about installation of SAP NetWeaver 7.sap.com/notes service.sap.1: Installation Guide service.com/ha service.com/platforms service.com service.com/performancemap service.sap.sap.com/installNW70 service.1 12 February 2008 .sap.0 SAP SNC 5.com/erp-inst ERP 2005 SAP SAP ERP 6.sap.1 SAP Event Management – WCL 5.0 (2004s) Location service.3 Related Master Guides This Master Guide is based on Component Master Guides.com/instguides SAP Business Suite Applications SAP SCM SAP SNC Using SAP SNC 5.sap.com/upgradeNW70 help.com/network service.sap.1 service.com/message service.1 Master Guide service.sap.sap.com/instguides SAP Business Suite Applications SAP SCM SAP EWM Using SAP EWM 5.com/instguides service.0 (2004s) Information about upgrade of SAP NetWeaver 7.

as well as changes to the installation documentation.2 Getting Started SAP CRM 2006s service.sap.com/instguides SAP Business Suite Applications SAP ERP SAP ERP 6.sap.com/notes SAP Note 811923. For information about availability of content specifically tailored to your solution. Without the SAP Solution Manager Key. see SAP Service Marketplace at service.sap. Read the SAP Installation Notes before you start the installation.sap. an SAP Solution Manager system is required to generate the SAP Solution Manager Key. List of Related SAP Notes SAP Note Number 836200 1025582 1033669 Title SAP NetWeaver 2004s: Importing process integration content Installation SCM_BASIS 510 on NW 04s Installation SCEMSRV 510 on SAP NetWeaver 04s February 2008 13 . SAP delivers Support Services based on the business scenarios designed and documented in SAP Solution Manager. In the installation or upgrade process.com/notes. which you can find on SAP Service Marketplace at service. Make sure that you have the up-to-date version of each SAP Note. These notes contain the most recent information about the installation. you cannot continue the installation process.sap. Using SAP Solution Manager significantly accelerates the implementation process and helps you achieve your business goals. see SAP Service Marketplace at service.5 Important SAP Notes This section contains important SAP Notes for SAP SCM.0 Enterprise Services for SAP Business Suite 2. Implementation content for your solution may further accelerate the implementation process.0 SAP enhancement package 3 for SAP ERP 6.0 SAP enhancement packages for SAP ERP 6.com/instguides SAP Business Suite Applications SAP CRM SAP CRM 2006s (with SAP CRM 5. For details.com/solutionmanager.4 SAP Solution Manager SAP provides the SAP Solution Manager as a highly recommended platform to efficiently support the implementation of your solution. 2. At the same time. The generation of the required key is implemented into the SAP Solution Manager as of Release 3.1) CRM Cross Component Master Guide SAP CRM 2006s service.2 SP8.

1 Restriction for Availability Check and Backorder Services ProductAvailabilityPreselection Technical Interface Changes Own Activity Methods when Upgrading SAP Event Management 14 February 2008 .1 SAP FRP Installation for SAP SCM 5.Master Guide: SAP SCM 2007 1026198 1019666 1034766 1034767 1115322 1107268 1133750 1144099 Installation SCMBPLUS 510 on NW 04s Installing SCM Optimizer Version 5.1 SAP SCM Optimizer Installation for SAP SCM 5.

Instead.1 Possible System Landscape The following diagram provides an overview of a possible system landscape for the business processes of SAP SCM. ERP Server SAP ECC 6. February 2008 15 . and so on. available hardware. you can distribute the components among several hosts.1 – SCM Server RDBMS SCM Optimizer SAP SCM 5. as displayed in the figure above.0 usage type PI RDBMS SCM Server SAP SCM 5.1 Support Package 04 installation. ensure that you know which components are required for the business process you plan to use. The distribution depends on many factors. For more information about restrictions.0 RDBMS BI Server SAP NetWeaver 7. any distribution of components among hosts is possible. such as sizing. The figure represents one of several ways of distributing the components.0 usage type BI RDBMS XI Server SAP NetWeaver 7. For more information about the required components. Remark Regarding Enterprise Services Enterprise Services are an integral part of the SAP SCM 5. In practice.3 System Landscape 3 System Landscape 3. security. see SAP Note 1115322. see the software component matrix for each business process. Before you start the installation.1 – SCM Optimizer We do not recommend installing all components on one host.

1 Server. You can download the XI content for SAP SCM from SAP Service Marketplace at service.1 Entry by Component XI Content XI Content SAP SCM 5.sap.sap.03. see SAP Note 916834.0 (2004s) usage type BI BI Content 7.com/installNW70 For more information. XI Server Installation of SAP NetWeaver 7. see the SAP ERP Installation Guide on SAP Service Marketplace at service.com/swdc Download Support Packages and Patches Entry by Application Group SAP Application Components SAP SCM SAP SCM 5.com/instguides SAP Business Suite Applications SAP SCM SAP SCM Server Using SAP SCM 5. You can download the BI content for SAP SNC from SAP Service Marketplace at service.sap.com/installNW70 For more information. see service. see the SAP SCM Installation Guide on SAP Service Marketplace at service.sap.1 BI Server Installation of SAP NetWeaver 7.sap.sap. ERP Server Installation of SAP ERP 6.com/swdc Download Support Packages and Patches Entry by Application Group SAP Application Components SAP SCM SAP SCM 5. SCM Server Installation of SAP SCM Server 5.0 (2004s) usage type PI Installation of XI Content for SAP SCM 5. 16 February 2008 .1 Entry by Component BI Content BI Cont 7. see service. see SAP Note 836200.com/instguides SAP Business Suite Applications SAP ERP mySAP ERP 2005 Installation.1 For more information.2 Overall Installation Sequence and Information The following tables show the installation sequence for the different servers and point you to detailed information about each one.0 For more information.03 SP05 For more information.Master Guide: SAP SCM 2007 3.1 For more information.

3 System Landscape Depending on the data volume that your company handles.1 February 2008 17 . the integrated BI of the SCM server may be sufficient.com/instguides SAP Business Suite Applications SAP SCM Using SAP SCM Server Using SAP SCM 5.1 For detailed information. see service. In this case.sap. you do not need a separate BI server. SCM Optimizer Installation of SAP SCM Optimizer 5.

com/instguides SAP Business Suite Applications SAP SCM SAP SNC Using SAP SNC 5. A detailed process description and configuration documentation is part of SAP Solution Manager implementation content ST-ICO 150.sap.1 Demand and Supply Planning The process group Demand and Supply Planning contains the following business processes: Demand Planning & Forecasting [page 19] Safety Stock Planning [page 20] Distribution Planning [page 21] Supply Network Planning [page 21] o o o Supply Network Planning Heuristic [page 22] Supply Network Optimization [page 23] Multilevel Demand and Supply Matching [page 24] 18 February 2008 . or SAP Extended Warehouse Management (SAP EWM). This section contains short process descriptions and information about the technical landscape of the business processes. Processes for SAP EWM: Inbound Processing and Receipt Confirmation Outbound Processing Warehousing & Storage Physical Inventory on Storage Bin Level For more information on these processes. Processes for SAP SNC: Responsive Replenishment Planning Purchase Order Processing Supplier Managed Inventory with Replenishment Order Processing Dynamic Replenishment Delivery Control Monitor Invoice Processing Self-Billing Invoice Processing For more information on these processes. SAP Transportation Management (SAP TM). see the SAP TM Master Guide on SAP Service Marketplace at service. 4.com/instguides SAP Business Suite Applications SAP SCM SAP EWM Using SAP EWM 5.Master Guide: SAP SCM 2007 4 Business Processes of SAP SCM This Master Guide does not cover processes relating to SAP Supply Network Collaboration (SAP SNC). see the SAP SNC Master Guide on SAP Service Marketplace at service.1. The excluded business processes for SAP SNC and SAP EWM are listed below.sap.1.

slow-moving. such as hurricanes or earthquakes. economic events. coupons. reporting. product displays. freestanding inserts. You can carry out various calculations to combine all information or to check for critical situations that are highlighted as alerts. February 2008 19 .4 Business Processes of SAP SCM 4. It automatically includes forecasts and promotion plans. such as competitors' activities. trade discounts. dealer allowances. Demand Planning is often the starting point of the entire supply chain planning process and you can use it to create forecasts of market demand for your company's products. or repeated events. contests. The business process Demand Planning and Forecasting contains the following major planning processes: Consensus Demand Planning Forecasting and Lifecycle Planning Promotion Planning Consensus Demand Planning Consensus Demand Planning brings together all available information and enables a collaborative planning process that includes all partners. or integrating to other systems and solutions Forecasting and Lifecycle Planning A company’s product portfolio probably includes a variety of products that are in different stages of their lifecycle and have different demand types. for the technical implementation of this process. strikes. such as quarterly advertising campaigns. and natural disasters. such as the millennium.1. You can use Promotion Planning to record either one-time events. Since a single forecasting method that creates accurate statistical forecasts for mature. Promotion Planning In Demand Planning. Technical System Landscape The following software components are either mandatory or optional. you must use a number of methods to get the right answers. The result of consensus demand planning is a final demand plan that you can transfer to: Supply planning for further planning Execution (in the ERP System or in SAP R/3) to trigger production or procurement SAP Business Intelligence (SAP BI) for archiving. proven forecasting that can be divided into three methods: Statistical Forecasting Causal Forecasting Composite Forecasting You can combine Lifecycle Planning with each of these methods. as well as non-sales-related events. or new products does not exist. Other examples of promotions are trade fairs. as indicated below.1 Demand Planning & Forecasting Overview You can use this business process to perform your demand planning and forecasting in SAP SCM. Forecasting and Lifecycle Planning offers a toolbox for practical. you can plan promotions or other special events separately.

20 February 2008 . 4. In this case you do not need a separate BI server. Safety Stock Planning allows you to meet a target service level while creating a minimum amount of safety stock throughout your entire supply chain for all intermediate and finished products at their respective locations. or to define a number of safety days of supply values for materials required at any stock holding location. The safety stock is then considered during subsequent supply network planning runs and during the production run. see System Landscape [page 15].Master Guide: SAP SCM 2007 The following table provides just one way to implement the business process.sap. Two different groups of safety stock calculation methods are offered: Basic safety stock planning Extended safety stock planning Basic Safety Stock Planning The easiest way to plan your safety stock is to define a time-dependent or time-independent safety stock level.sap. The system applies these settings and calculates the resulting safety stock automatically. see SAP Service Marketplace at service. Extended Safety Stock Planning Extended safety stock planning can calculate and consider variability on both the demand and the supply side.com SAP Business Suite SAP Supply Chain Management English SAP Advanced Planning and Optimization (SAP APO) Supply Network Planning Safety Stock Planning.1 – SAP liveCache SAP NetWeaver 7.com/scl. For other combinations.0 (2004s) usage type BI Mandatory X X X Optional For more information about the installation of these components. for the technical implementation of this process.1.1 – SCM Server SAP SCM 5. Component SAP SCM 5. the system also supports re-order cycle and re-order point strategies.com/scl. Depending on the data volume that your company handles. For other combinations. For more information about safety stock planning.2 Safety Stock Planning Overview You can use this business process to plan the quantity of additional stock to procure and hold in case of unexpectedly high fluctuations in demand. see SAP Help Portal at help. It can also perform simulations of service levels and forecast errors. The following table provides just one way to implement the business process. the integrated BI of the SCM server may be sufficient. see SAP Service Marketplace at service.sap. as indicated below. Besides service levels. Technical System Landscape The following software components are either mandatory or optional.

If there are insufficient quantities available to fulfill the demand. For other combinations.com/scl.com SAP Business Suite English SAP Advanced Planning and Optimization (SAP APO) Cross-Application Topics Supply Chain Planning Within a Plant Stock Transfer with Storage Location MRP Areas.1 – SCM Server SAP SCM 5. see System Landscape [page 15].1 – SCM Server SAP SCM 5. or if the quantities available exceed the demand.4 Supply Network Planning Supply Network Planning (SNP) contains the following business processes: Supply Network Planning Heuristic [page 22] Supply Network Optimization [page 23] Multilevel Demand and Supply Matching [page 24] February 2008 21 . see SAP Help Portal at help. see SAP Service Marketplace at service.sap.1 – SAP liveCache Mandatory X X Optional For more information about the installation of these components. Component SAP SCM 5. see System Landscape [page 15]. thus generating TLB shipments.1 – SAP liveCache SAP SCM 5. The deployment run generates deployment stock transfers based on the SNP stock transfers that were created during the SNP run. for the technical implementation of this process. as indicated below. where to transport available quantities. 4. The Transport Load Builder (TLB) then uses these deployment stock transfers to create transport loads. You cannot use deployment for stock transfers that involve storage location MRP areas.3 Distribution Planning Overview You can use this business process to plan distribution for your deployment run. When production is completed. Technical System Landscape The following software components are either mandatory or optional. deployment determines which demands the existing supply can fulfill. For more information.sap.1 – SCM Optimizer Mandatory X X X Optional For more information about the installation of these components.1. The following table provides just one way to implement the business process.1. 4. Deployment decides. deployment makes adjustments to the plan that is created by the Supply Network Planning (SNP) run. on an individual product basis.4 Business Processes of SAP SCM Component SAP SCM 5.

bills of materials.4. SNP offers three basic algorithms to carry out the planning: Heuristics (together with capacity leveling capability) Optimization Multilevel supply and demand matching (capable-to-match) Starting from a demand plan. links. distribution (of demands).1 – SCM Server SAP SCM 5. to the plants and their suppliers. and different kinds of resources are essential parts of the supply network. or transportation) which they consider. or suppliers.1 – SAP liveCache Mandatory X X Optional 22 February 2008 . and other elements.com/scl. Technical System Landscape The following software components are either mandatory or optional.1 Supply Network Planning Heuristic Overview You can use this business process to integrate purchasing. The result is best. The links between the nodes are represented by the transportation lanes.to long-term plan for fulfilling the estimated and real sales volumes. and on which level of aggregation they perform the planning. The following table provides just one way to implement the business process. global. and an improved customer service level.sap. The model represents a specific supply chain (or network) and consists of individual nodes. purchasing.Master Guide: SAP SCM 2007 4. but it is an important prerequisite. production. distribution centers. but not necessarily optimal. The supply network definition itself is not part of the ongoing SNP process. through distribution centers. For other combinations. as indicated below. elements such as products. SNP is based on a model of the supply network. SNP determines a permissible medium. see SAP Service Marketplace at service. and transportation so that comprehensive mid-term to long-term tactical planning and sourcing decisions can be simulated and performed on the basis of a single. Also. Component SAP SCM 5. The algorithms plan for all sources of supply from the customer. such as customer locations. Each algorithm does the following: Distributes production over the plants Selects production options and alternatives Explodes the bill of materials Determines the procurement of semi-finished goods and raw materials The algorithms differ in the way they make decisions. for the technical implementation of this process. and distribution decisions as well as reduced order fulfillment times and inventory levels. The structure of the model and the detailed settings influence the results of the planning run.1. plants. consistent model or sub-model. routings. production. storage. the constraints (for such factors as production. The nodes represent different locations of the network.

see System Landscape [page 15]. The result is best purchasing. SNP can build up stock. Adjustment of production and requirements is possible. There are no restrictions to periodic lots in PP/DS. distribution (of demands). production.4. and improved customer service. 4.1. through distribution centers to the plants and their suppliers. and distribution decisions as well as reduced order fulfillment times and inventory levels. consistent model or sub-model. Executing Supply Network Planning (SNP) and Production Planning and Detailed Scheduling (PP/DS) in different planning versions has the following advantages: High degree of stability in SNP Checked SNP plans can be released to PP/DS SNP and PP/DS can be performed in different frequency. SNP determines a permissible medium to long-term plan for fulfilling the estimated and real sales volumes.4 Business Processes of SAP SCM For more information about the installation of these components. Supply Network Planning offers three basic algorithms to carry out the planning: Heuristics (together with capacity leveling capability) Optimization Multilevel supply and demand matching (capable-to-match) Starting from a demand plan. or transportation) that they consider. Key performance indicators (KPIs) of what-if scenarios for different planning versions can be compared in the Business Intelligence (BI) system. The algorithms plan for all sources of supply from the customer. Each algorithm does the following: Distributes production over the plants Selects production options and alternatives Explodes the bill of materials Determines the procurement of semi-finished goods and raw materials The algorithms differ in the way that they make decisions. production. and the level of aggregation that they perform the planning.2 Supply Network Optimization Overview You can use this business process to integrate purchasing. February 2008 23 . storage. Supply Network Optimization is best performed in planning versions that are different from the active planning version. and transportation using optimization and multilevel supply so that comprehensive mid-term to long-term tactical planning and sourcing decisions can be simulated and performed on the basis of a single. the constraints (for such factors as production. global. Make-to-order is possible.

routings. through distribution centers to the plants and their suppliers.1 – SAP liveCache SAP SCM 5. Each algorithm does the following: Distributes production over the plants Selects production options and alternatives Explodes the bill of materials Determines the procurement of semi-finished goods and raw materials 24 February 2008 .1 – SCM Server SAP SCM 5. and other elements. 4. The nodes represent different locations of the network. Supply Network Planning determines a permissible medium to long-term plan for fulfilling the estimated and real sales volumes. or suppliers.4.com/scl.1.Master Guide: SAP SCM 2007 SNP is based on a model of the supply network that represents a specific supply chain (or network) and consists of individual nodes.sap.1 – SCM Optimizer Mandatory X X X Optional For more information about the installation of these components. links. The links between the nodes are represented by the transportation lanes. Technical System Landscape The following software components are either mandatory or optional. consistent model or sub-model. and different kinds of resources are also essential parts of the supply network. plants. see System Landscape [page 15]. such as customer locations. production. The algorithms plan for all sources of supply from the customer. and transportation using multilevel demand and supply matching so that comprehensive mid-term to long-term tactical planning and sourcing decisions can be simulated and performed on the basis of a single. see SAP Service Marketplace at service. The supply network definition itself is not part of the ongoing Supply Network Planning and Outsourcing process. but is an important prerequisite. bills of materials. as indicated below. Supply Network Planning offers three basic algorithms to carry out the planning: Heuristics (together with capacity leveling capability) Optimization Multilevel supply and demand matching (capable-to-match) Starting from a demand plan. The structure of the model and the detailed settings influence the results of the planning run. distribution centers.3 Multilevel Demand and Supply Matching Overview You can use this business process to integrate purchasing. for the technical implementation of this process. Component SAP SCM 5. For other combinations. The following table provides just one way to implement the business process. Elements such as products. distribution (of demands). global.

and an improved customer service level. elements such as products. for the technical implementation of this process. Also. but an important prerequisite. sales orders. links. routings. or suppliers. For other combinations. 4. storage.2. or stock transfer orders) from SAP ERP. and other elements. Component SAP SCM 5.1 – SCM Server SAP SCM 5. Next. as indicated below. see System Landscape [page 15]. plants. purchase orders.TP/VS assigns the loads represented by these documents to resources such as trucks or railcars to create planned shipments that it assigns to carriers.1 – SAP liveCache Mandatory X X Optional For more information about the installation of these components. The links between the nodes are represented by the transportation lanes.sap. or transportation) which they consider. Transportation Planning/Vehicle Scheduling (TP/VS) first reads transportation-relevant business documents (for example. The result is best – but not necessarily optimal – purchasing.2 Transportation Transportation contains the following business processes: Transportation Planning [page 25] Transportation Execution [page 26] Freight Costing [page 26] 4. bills of materials. and on which level of aggregation they perform the planning. such as customer locations. production. see SAP Service Marketplace at service. and distribution decisions as well as reduced order fulfillment times and inventory levels.1 Transportation Planning Overview You can use this process to create optimized shipments and transfer these shipments to SAP ERP for execution. To do this. finally. The following table provides just one way to implement the business process.com/scl. February 2008 25 . and. distribution centers. The nodes represent different locations of the network.4 Business Processes of SAP SCM The algorithms differ in the way they make decisions. the constraints (for such factors as production. The supply network definition itself is not part of the ongoing Supply Network Planning and Outsourcing process. The structure of the model and the detailed settings influence the results of the planning run. Technical System Landscape The following software components are either mandatory or optional. The model represents a specific supply chain (or network) and consists of individual nodes. and different kinds of resources are essential parts of the supply network. tenders the shipments to the assigned carriers. Supply Network Planning is based on a model of the supply network.

26 February 2008 . Technical System Landscape The following software components are either mandatory or optional.Master Guide: SAP SCM 2007 Technical System Landscape The following software components are either mandatory or optional. 4. see SAP Service Marketplace at service. print required shipment documents. handling charges. Technical System Landscape The following software components are either mandatory or optional.sap. see SAP Service Marketplace at service. for the technical implementation of this process.3 Freight Costing Overview You can use this business process to manage your freight costing. The following table provides just one way to implement the business process. 4. and other transportation costs.sap. for the technical implementation of this process.1 – SCM Server SAP SCM 5. Component SAP ERP 6. The shipment cost document lets you calculate the shipment costs for a given shipment.2 Transportation Execution Overview You can use this process to create a shipment. A shipment can have costs that represent the charges from the Transportation Service Provider (TSP). For other combinations. You can then analyze the cost components and the rules that were applied for the components.1 – SAP liveCache SAP SCM 5.com/scl. see System Landscape [page 15]. as indicated below. see System Landscape [page 15]. For other combinations. and set shipment statuses such as Shipment end. surcharges such as fuel. You then settle these costs against the TSP’s invoice. as indicated below. The following table provides just one way to implement the business process.0 Mandatory X Optional For more information about the installation of these components.com/scl. as indicated below. Component SAP SCM 5.1 – SCM Optimizer Mandatory X X X Optional For more information about the installation of these components. for the technical implementation of this process.2.2.

0 Mandatory X Optional For more information about the installation of these components.3 Service Parts Planning The process group Service Parts Planning contains the following business processes: Parts Forecasting [page 27] Stocking List Determination [page 28] Safety Stock Calculation [page 28] Distribution Requirements Planning [page 29] Pull Deployment [page 29] Inventory Balancing [page 30] Parts Monitoring [page 30] 4.1 Parts Forecasting Overview You can use this business process to capture historical demand. to model that demand according to the structure of the service parts supply chain. February 2008 27 . you can choose whether you use SAP ERP 6. For gathering data for the demand history.1 – SCM Server SAP SCM 5. see SAP Service Marketplace at service. for the technical implementation of this process.0 (2004s) usage type BI X Mandatory X X X X Optional For more information about the installation of these components. see System Landscape [page 15]. and to perform forecasts for future demand.1 – SAP liveCache SAP ERP 6.0 or SAP CRM 2006s as source system.sap. For other combinations. Technical System Landscape The following software components are either mandatory or optional.com/scl.0 EhP 2 SAP CRM 2006s SAP NetWeaver 7. Component SAP SCM 5.sap. Demand planning continuously analyzes past forecast performance and adjusts forecast models and parameters accordingly. The following table provides just one way to implement the business process. see System Landscape [page 15]. Component SAP ERP 6.4 Business Processes of SAP SCM The following table provides just one way to implement the business process.3.com/scl. see SAP Service Marketplace at service. For other combinations. as indicated below. 4.

demand frequency.3. The following table provides just one way to implement the business process.com/scl. its demand. Component SAP SCM 5.2 Stocking List Determination Overview You can use this business process to determine the optimal stocking points of a product within the service parts supply chain by considering the characteristics of the product. see SAP Service Marketplace at service. for the technical implementation of this process. as indicated below. and the supply chain structure.sap.1 – SCM Server SAP SCM 5. The following table provides just one way to implement the business process. Technical System Landscape The following software components are either mandatory or optional.1 – SCM Server SAP SCM 5. It uses forecast demand information and its standard deviation to determine the amount of safety stock to be kept at each stocking point in the supply chain. product classification. see SAP Service Marketplace at service. see System Landscape [page 15].3.sap. For other combinations. 28 February 2008 . see System Landscape [page 15]. For other combinations. or the cost of a product at the given location. as indicated below. This enables you to handle demand and supply uncertainty according to a target service level.3 Safety Stock Calculation Overview You can use this business process to optimize the safety stock and the economic order quantity. Technical System Landscape The following software components are either mandatory or optional.1 – SAP liveCache Mandatory X X Optional For more information about the installation of these components. Component SAP SCM 5.Master Guide: SAP SCM 2007 4.1 – SAP liveCache Mandatory X X Optional For more information about the installation of these components. Service levels are determined dynamically and differentiated based on demand. for the technical implementation of this process. 4.com/scl.

see System Landscape [page 15]. as well as supplier schedule stability rules.1 – SCM Server SAP SCM 5. but only creates stock transfer requisitions to the triggering locations. Technical System Landscape The following software components are either mandatory or optional. 4.0 X Mandatory X X X Optional For more information about the installation of these components.3. For other combinations. The following table provides just one way to implement the business process. Pull Deployment uses the current inventory situation within the supply chain network as the basis for decision making.1 – SAP liveCache SAP NetWeaver 7. for the technical implementation of this process.4 Business Processes of SAP SCM 4. Technical System Landscape The following software components are either mandatory or optional.1 – SAP liveCache SAP ERP 6. Component SAP SCM 5. It determines a prioritized fair share distribution among all subordinate locations of the same level. The following table provides just one way to implement the business process.5 Pull Deployment Overview Pull Deployment is triggered based on a material need of a subordinate location in the supply chain. for the technical implementation of this process. see SAP Service Marketplace at service. as indicated below.0 (2004s) usage type PI SAP ERP 6. schedule adjustments for seasonal demands and inventory build-up.4 Distribution Requirements Planning Overview You can use this business process to determine rounded net requirement needs throughout the service parts supply chain.0 X Mandatory X X Optional February 2008 29 .3. minimum net demand for slow moving items.sap. as indicated below. The distribution requirements planning calculation considers full interchangeability to use up existing inventory of a predecessor product.1 – SCM Server SAP SCM 5. Component SAP SCM 5. For other combinations.com/scl. see SAP Service Marketplace at service.sap.com/scl. These requirements are aggregated along the hierarchical supply chain structure to result in supply proposals that are covered either by supply of remanufactured parts or by purchase requisitions or schedules to one or more suppliers.

7 Parts Monitoring Overview You use this process to provide visibility for all planning-related processes and for potential follow-up activities.1 – SCM Server SAP SCM 5.com/scl.3. for the technical implementation of this process. For other combinations. Triggered by a number of events such as an unfulfilled Pull Deployment requisition. for the technical implementation of this process. as indicated below.com/scl.1 SAP ERP 6. see System Landscape [page 15]. Component SAP SCM 5. 4. see SAP Service Marketplace at service. 4.3.1 – SAP liveCache SAP SNC 5. see System Landscape [page 15]. Component SAP SCM 5. and service benefits. Inventory Balancing determines excess and shortage locations within a predefined balancing area. Technical System Landscape The following software components are either mandatory or optional.sap. It suggests stock transfers based on a cost-benefit analysis that compares the additional cost of a lateral transfer with the inventory. as indicated below.0 EhP 2 SAP CRM 2006s SAP NetWeaver 7.6 Inventory Balancing Overview You can use this business process to manage lateral material movement in the service parts supply chain.1 – SAP liveCache SAP ERP 6.0 (2004s) usage type BI X Mandatory X X X X X Optional 30 February 2008 . For other combinations.Master Guide: SAP SCM 2007 For more information about the installation of these components.0 X Mandatory X X Optional For more information about the installation of these components. The following table provides just one way to implement the business process.1 – SCM Server SAP SCM 5. see SAP Service Marketplace at service. warehouse.sap. The following table provides just one way to implement the business process. Technical System Landscape The following software components are either mandatory or optional.

It helps companies to provide better customer service by increasing and meeting fulfillment expectations. It can increase revenue by selling what you have.1 – SAP liveCache Mandatory X X Optional For more information about the installation of these components.1 Availability Check Overview You can use this business process in a heterogeneous system landscape to provide real time information as quickly as possible. The availability check uses predefined rules to automate business decisions about how to best serve your customer. The availability check is an online search that ensures that your company can provide the requested product at the requested time in the requested quantity. for the technical implementation of this process. 4. reducing overall operating expenses.4 Available to Promise This business process group contains the following business process: Availability Check [page 31] 4.1 – SCM Server SAP SCM 5.com/scl.4 Business Processes of SAP SCM For more information about the installation of these components. see SAP Service Marketplace at service. The following table provides just one way to implement the business process.1 if you wish to use supplier delivery performance rating. Component SAP SCM 5. 4.4. Technical System Landscape The following software components are either mandatory or optional. as indicated below. see System Landscape [page 15]. For other combinations.5 Production Planning and Detailed Scheduling (PP/DS) The process group Production Planning and Detailed Scheduling contains the following business processes: Production Scheduling with Capacity Reservation [page 32] MRP-based Detailed Scheduling [page 32] February 2008 31 .sap. and increasing your company’s efficiency. see System Landscape [page 15]. You only have to install SAP SNC 5.

Capacity reservations help shorten delivery times to strategic customers by reserving capacity for them. and account director. the selected characteristics are customer. Technical System Landscape The following software components are either mandatory or optional. see System Landscape [page 15]. For other combinations. This document lists the steps involved in activating MRP-based Detailed Scheduling and its individual functions.1 – SCM Server SAP SCM 5.2 MRP-Based Detailed Scheduling Overview MRP-based Detailed Scheduling allows you to combine Material Requirements Planning (MRP) in SAP ERP and detailed scheduling in SAP Advanced Planning and Optimization (APO) without transferring bills of materials (BOMs). Additionally.1 – SAP liveCache SAP ERP 6. for the technical implementation of this process.1 Production Scheduling with Capacity Reservation Overview You use this business process to model capacity reservations on resources.0 X X Mandatory X X Optional For more information about the installation of these components. 32 February 2008 . It is possible to reserve capacity for up to three different dimensions (characteristics) for a single resource. as indicated below. Technical System Landscape The following software components are either mandatory or optional.5. This date specifies when the unused reserved capacity can be freed for reassignment. as indicated below. for a given resource. Component SAP SCM 5.sap. or production versions to SAP APO. sales region.Master Guide: SAP SCM 2007 4. In this case. For example. This enhanced process enables you to derive the benefits of detailed scheduling in APO while continuing to use the planning functions of SAP ERP. The following table provides just one way to implement the business process.1 – SCM Optimizer SAP SCM 5. you can reserve capacity for certain customers and for a sales region and for certain account directors as well. 4. During a CTP check capacity reservations are checked and a realistic delivery date can be given to the customer. see SAP Service Marketplace at service.com/scl.5. you can maintain a release date to prevent reserved capacity from remaining unused. for the technical implementation of this process. routings.

across all industries.6 Order Fulfillment The process group Order Fulfillment contains the following business processes: Sourcing [page 33] Supersession [page 34] 4. February 2008 33 . can I find stock somewhere else in my supply chain?” or “Do I have stock that has been promised to another customer that I would be willing to sell to another customer instead?” Sourcing enables better visibility of material activity. So the simple question “Do I have stock to sell?” quickly evolves into “Do I have stock to sell in the location closest to the customer.6. For other combinations. Technical System Landscape The following software components are either mandatory or optional.com/scl.sap. see SAP Service Marketplace at service. 4.sap. Some customer orders may have priority over others. but not in others. The following table provides just one way to implement the business process.4 Business Processes of SAP SCM The following table provides just one way to implement the business process. Component SAP SCM 5.0 EhP3 SP9 Mandatory X X (X) X Optional For more information about the installation of these components. For other combinations.com/scl. as indicated below. transfers between internal locations. With clear visibility. see SAP Service Marketplace at service. and lower shipping costs. often resulting in higher customer satisfaction. for the technical implementation of this process. it is not an easy question to answer. if not. and.1 – SCM Optimizer SAP ERP 6. answering other key questions such as “Are we selling too many products to one-time customers while neglecting our established customer base?” The benefits of being able to intelligently answer these questions are felt throughout the supply chain.1 Sourcing Overview You can use this business process to answer the critical and complex question “Do I have stock to sell?” In most businesses. A material may be maintained in some locations. higher fill rates. clearly showing and guiding the processes of material sales.1 – SCM Server SAP SCM 5. see System Landscape [page 15].1 – SAP liveCache SAP SCM 5. you can make better business decisions. and use of materials in manufacturing processes.

sap. Component SAP SCM 5.0 Mandatory X X X Optional For more information about the installation of these components. Part B replaces Part A. after Part B has replaced it. The following table provides just one way to implement the business process. When an ATP check (from a sales order) is performed in global ATP for Part A. Part B will be the part sold. see System Landscape [page 15]. 4.2 Supersession Overview You can use this business process to enable chains of product substitution. 4.6.com/scl.1 – SAP liveCache SAP ERP 6. Technical System Landscape The following software components are either mandatory or optional.1 – SCM Server SAP SCM 5. Part C replaces Part B. For other combinations. In many business scenarios. see SAP Service Marketplace at service. particularly those in manufacturing. as indicated below.0 Mandatory X X Optional X For more information about the installation of these components.7 Manufacturing (Planning & Operations) The process group Manufacturing (Planning & Operations) contains the following areas: Production Planning (Process Manufacturing) [page 35] Production Planning (Discrete Manufacturing) [page 38] Production Planning (Repetitive Manufacturing) [page 44] Production Scheduling [page 49] Manufacturing Execution [page 53] 34 February 2008 . and eventually.1 – SCM Server SAP SCM 5. it is common that parts are discontinued and replaced by one or more other parts. see System Landscape [page 15]. Using supersession chains in SAP SCM it is possible to create and maintain this relationship among parts. for the technical implementation of this process.1 – SAP liveCache SAP ERP 6.Master Guide: SAP SCM 2007 Component SAP SCM 5.

4 Business Processes of SAP SCM 4.com/scl. Make-to-order production is carried out with reference to a sales order. These orders represent receipt elements for in-house production and external procurement. Extensive planning steps. This business process includes analysis. and the process-oriented electronics industry. February 2008 35 . for the technical implementation of this process.7.1. Component SAP ERP 6. usually run in the background.sap. as indicated below.0 Mandatory X Optional For more information about the installation of these components.1. Technical System Landscape The following software components are either mandatory or optional.7.1 Production Planning (Process Manufacturing) The area Production Planning (Process Manufacturing) contains the following business processes: Production Planning (Process Manufacturing) MTS in ERP [page 35] Production Planning (Process Manufacturing) MTO in ERP [page 35] Production Planning (Process Manufacturing) MTS in SCM [page 36] Production Planning (Process Manufacturing) MTO in SCM [page 37] 4. see SAP Service Marketplace at service. that is.2 Production Planning (Process Manufacturing) MTO in ERP Overview You can use this business process to carry out make-to-order production in SAP ERP.1 Production Planning (Process Manufacturing) MTS in ERP Overview You can use this business process to carry out make-to-stock production in SAP ERP. such as material requirements planning. although they can also be performed manually. and evaluation of the planning results. You can use the order to plan material requirements across all BOM levels based on the customer requirements for the finished products and components. planning according to MRP logic. see System Landscape [page 15]. For other combinations. This business process is used in process industries including the chemical and pharmaceutical industries.7. Maketo-stock production is carried out without reference to a sales order. The following table provides just one way to implement the business process. the items in a manufacturing order are only manufactured for a certain customer. food and beverage industry. 4.

Master Guide: SAP SCM 2007 This business process is used in process industries including the chemical and pharmaceutical industries.7. usually run in the background. 36 February 2008 . or when the threshold value for the available stock falls short (reorder point). 4. Technical System Landscape The following software components are either mandatory or optional. You can use the order to plan material requirements across all BOM levels. based on the customer requirements for the finished products and components.com/scl.sap. Extensive planning steps. in the production planning run. whereas finished products are normally manufactured with make-to-order production. although they can also be performed manually. based on the requirements for the finished products and components from the forecast and demand plan.3 Production Planning (Process Manufacturing) MTS in SCM Overview You can use this business process to carry out make-to-stock production in SAP SCM. You can use the order to plan material requirements across all BOM levels. The following table provides just one way to implement the business process. Extensive planning steps. This business process includes analysis. such as material requirements planning. make-to-stock production is frequently used for raw materials and unpackaged goods (bulk ware) the. although they can also be carried out manually. planning according to MRP logic. as indicated below.1. see System Landscape [page 15].0 Mandatory X Optional For more information about the installation of these components. This business process is used in process industries including the chemical and pharmaceutical industries. food and beverage industry. These orders represent receipt elements for in-house production and external procurement. and evaluation of the planning results. The requirement quantities for the finished products are determined in demand planning. for the technical implementation of this process. and the process-oriented electronics industry. see SAP Service Marketplace at service. normally run in the background. This business process includes analysis. Component SAP ERP 6. Maketo-stock production is carried out without reference to a sales order. Incoming sales orders are delivered from the warehouse. It is normally carried out in Production Planning and Detailed Scheduling (PP/DS) in SAP SCM. For other combinations. such as material planning (MRP). planning according to MRP logic. and the process-oriented electronics industry. These orders represent receipt elements for in-house production and external procurement. food and beverage industry. In process industries. and evaluation of the planning results.

com/scl. see SAP Service Marketplace at service. as indicated below. You can use the order to plan material requirements across all BOM levels. For other combinations. for the technical implementation of this process. In process industries. Extensive planning steps.sap.1. This includes the chemical and pharmaceutical industries. After the sales order has been received. but finished products are manufactured with make-to-order production.1 – SCM Server SAP SCM 5. These orders represent receipt elements for in-house production and external procurement. food and beverage industry. the items in a manufacturing order are only manufactured for a certain customer. For other combinations.sap. It is normally carried out in Production Planning and Detailed Scheduling (PP/DS) in SAP SCM. make-to-stock production is frequently used for unfinished products. Component SAP SCM 5. see SAP Service Marketplace at service. based on the customer requirements for the finished products and components. normally run in the background in the production planning run. see System Landscape [page 15].1 – SAP liveCache SAP ERP 6.7. such as product planning (MRP). 4. planning according to MRP logic. although they can also be carried out manually. Make-to-order production is carried out with reference to a sales order. and evaluation of the planning results. This business process is used in process industries. as indicated below.4 Production Planning (Process Manufacturing) MTO in SCM Overview You can use this business process to carry out make-to-order production in SAP SCM. In some cases. Technical System Landscape The following software components are either mandatory or optional. and the process-oriented electronics industry. This business process includes analysis.4 Business Processes of SAP SCM Technical System Landscape The following software components are either mandatory or optional. The following table provides just one way to implement the business process. the bulk ware is packaged for the customer. that is. the bulk ware is packaged using customer-specific packing materials. February 2008 37 . for the technical implementation of this process.0 Mandatory X X X Optional For more information about the installation of these components.com/scl. The following table provides just one way to implement the business process.

usually run in the background although they can also be planned manually.1 Production Planning (Discrete Manufacturing) MTS in ERP Overview You can use this business process to carry out make-to-stock production in SAP ERP.1 – SAP liveCache SAP ERP 6. based on the requirements for the finished products and components from the forecast and demand plan. as indicated below.Master Guide: SAP SCM 2007 Component SAP SCM 5.1 – SCM Server SAP SCM 5. planning according to MRP logic. or when the threshold value for the available stock falls short (reorder point). This process includes analysis.2 Production Planning (Discrete Manufacturing) The area Production Planning (Discrete Manufacturing) contains the following business processes: Production Planning (Discrete Manufacturing) MTS in ERP [page 38] Production Planning (Discrete Manufacturing) MTO in ERP [page 39] Production Planning (Discrete Manufacturing) CTO in ERP [page 39] Production Planning (Discrete Manufacturing) ETO in ERP [page 40] Production Planning (Discrete Manufacturing) MTS in SCM [page 41] Production Planning (Discrete Manufacturing) MTO in SCM [page 41] Production Planning (Discrete Manufacturing) CTO in SCM [page 42] Production Planning (Discrete Manufacturing) ETO in SCM [page 43] 4. see System Landscape [page 15]. Technical System Landscape The following software components are either mandatory or optional. machine construction.7. These orders represent receipt elements for in-house production and external procurement. 38 February 2008 . for the technical implementation of this process. such as material requirements planning. Make-to-stock production is carried out without reference to a sales order. and evaluation of the planning results. and electronics industries. This process is designed to meet the requirements of discrete industries including the consumer products.0 Mandatory X X X Optional For more information about the installation of these components. metal and paper production. Extensive planning steps. 4. You can use the order to plan material requirements across all BOM levels.2.7.

7.2 Production Planning (Discrete Manufacturing) MTO in ERP Overview You can use this business process to carry out make-to-order production in SAP ERP. such as material requirements planning. machine construction. Technical System Landscape The following software components are either mandatory or optional. 4. for the technical implementation of this process. that is. You can use the order to plan material requirements across all BOM levels. see SAP Service Marketplace at service.7. This business process is used in discrete industries. and in particular the automotive industry. the items in a manufacturing order are only manufactured for a certain customer. This includes the consumer products industry.sap.2.com/scl. For other combinations. Make-to-order production is carried out with reference to a sales order. as indicated below. see SAP Service Marketplace at service. Extensive planning steps. February 2008 39 .4 Business Processes of SAP SCM The following table provides just one way to implement the business process. 4. metal and paper production. usually run in the background.2. and the electronics industry.3 Production Planning (Discrete Manufacturing) CTO in ERP Overview You can use this business process to carry out configure-to-order production in SAP ERP. planning according to MRP logic.com/scl. the electronics industry. although they can also be planned manually. that is. For other combinations. based on the customer requirements for the finished products and components. This includes the machinery and plant engineering and construction industry. see System Landscape [page 15]. Configure-to-order production is carried out with reference to a sales order. and evaluation of the planning results. the items in a manufacturing order are only manufactured for a certain customer. see System Landscape [page 15].0 Mandatory X Optional For more information about the installation of these components. Component SAP ERP 6. This business process includes analysis.0 Mandatory X Optional For more information about the installation of these components. This business process is used in discrete industries. These orders represent receipt elements for in-house production and external procurement. Component SAP ERP 6.sap. The following table provides just one way to implement the business process.

For other combinations. for the technical implementation of this process.com/scl. These orders represent receipt elements for in-house production and external procurement. These orders represent receipt elements for in-house production and external procurement. and evaluation of the planning results. The following table provides just one way to implement the business process.sap.0 Mandatory X Optional For more information about the installation of these components. planning according to MRP logic. Component SAP ERP 6. Extensive planning steps.0 Mandatory X Optional For more information about the installation of these components. Extensive planning steps. usually run in the background. Technical System Landscape The following software components are either mandatory or optional.sap. that is. You can use the order to plan material requirements across all BOM levels. Engineer-to-order production is carried out with reference to a project from the project system. This business process is used in discrete industries including the machinery.2. and the aerospace industries. based on the customer requirements for the configured finished products and components. plant engineering. although they can also be planned manually. construction. such as material requirements planning. as indicated below. for the technical implementation of this process. such as material requirements planning.Master Guide: SAP SCM 2007 You can use the orders to plan material requirements across all BOM levels. 4. Technical System Landscape The following software components are either mandatory or optional. see SAP Service Marketplace at service. Component SAP ERP 6. For other combinations. the items in a manufacturing order are manufactured for a specific project. 40 February 2008 .7. and evaluation of the planning results. based on the requirements for the finished products and components required in the project. see System Landscape [page 15].4 Production Planning (Discrete Manufacturing) ETO in ERP Overview You can use this business process to carry out engineer-to-order production in SAP ERP. The following table provides just one way to implement the business process. The business process includes analysis. as indicated below. see SAP Service Marketplace at service.com/scl. usually run in the background although they can also be planned manually. This business process includes analysis. see System Landscape [page 15]. planning according to MRP logic.

1 – SCM Optimizer Mandatory X X X Optional For more information about the installation of these components. see SAP Service Marketplace at service. normally run in the background in the production planning run. You can use the order to plan material requirements across all BOM levels. or when the threshold value for the available stock falls short (reorder point). see System Landscape [page 15].com/scl. This business process is suitable for products with short replenishment lead times for the finished product and for all incoming assemblies and components. based on the requirements for the finished products and components from the forecast and demand plan.1 – SAP liveCache SAP SCM 5. For other combinations. Component SAP SCM 5. the in-house production or procurement of products is only started when the sales order has been received.2.6 Production Planning (Discrete Manufacturing) MTO in SCM Overview You can use this business process to carry out make-to-order production in SAP SCM. These orders represent receipt elements for in-house production and external procurement. This includes the consumer products industry. mechanical engineering. This business process includes analysis.7. This business process is used in discrete industries. It is normally carried out in Production Planning and Detailed Scheduling (PP/DS) in SAP SCM. and evaluation of the planning results. planning according to MRP logic. as indicated below.1 – SCM Server SAP SCM 5. Incoming sales orders are delivered from the warehouse. The requirement quantities for the finished products are determined in demand planning.7. Extensive planning steps. The following table provides just one way to implement the business process.4 Business Processes of SAP SCM 4. for the technical implementation of this process. In make-to-order production. Make-to-stock production is carried out without reference to a sales order. metal and paper production. although they can also be carried out manually.2. February 2008 41 . such as product planning (MRP). and the electronics industry.5 Production Planning (Discrete Manufacturing) MTS in SCM Overview You can use this business process to carry out make-to-stock production in SAP SCM.sap. Technical System Landscape The following software components are either mandatory or optional. 4.

In case of long replenishment lead times for assemblies and components and low costs.Master Guide: SAP SCM 2007 This business process is useful if the costs of procurement and production of assemblies and components is very high. machine construction. for the technical implementation of this process. see SAP Service Marketplace at service. based on the sales orders. You can use the generated orders to plan material requirements across all BOM levels. 4. This business process is used in discrete industries. This business process is used in discrete industries such as consumer products (high-quality consumer products). planning according to MRP logic. metal and paper production. Technical System Landscape The following software components are either mandatory or optional. Extensive planning steps. the aerospace and electronics industries. the in-house production or procurement of products is only started when the sales order has been received. These orders represent receipt elements for in-house production and external procurement. The following table provides just one way to implement the business process. and can be displayed according to the customer. With this business process. such as material requirements planning usually run in the background although they can also be planned manually. This business process is suitable for identical products with characteristics that the customer can define on the sales order.1 – SAP liveCache SAP SCM 5. The product characteristics are determined when the sales order is created.1 – SCM Optimizer Mandatory X X X Optional For more information about the installation of these components. These orders represent receipt elements for in-house production and external procurement. based on the sales orders.sap. forecasting for assemblies is useful in order to reduce the delivery time for the sales order. and evaluation of the planning results. and can be displayed according to the customer.com/scl. see System Landscape [page 15]. and electronics. additional storage costs can be avoided if incorrect forecasts have been made. For other combinations. This affects assemblies that contain a large number of finished products.1 – SCM Server SAP SCM 5. The material flow between the BOM levels can be coordinated. The material flow between the BOM levels can be harmonized. In configure-to-order production. This business process includes analysis. This includes the machinery and automotive industries. You can implement planning at the assembly level for the assemblies that are not influenced by customer requirements.2. Component SAP SCM 5. and component supplier industries. as indicated below.7 Production Planning (Discrete Manufacturing) CTO in SCM Overview You can use this business process to carry out configure-to-order production in SAP SCM. You can use the generated orders to plan material requirements across all BOM levels. it is not used to plan at the finished product level.7. therefore. 42 February 2008 .

com/scl. This business process includes analysis. see System Landscape [page 15]. For other combinations. although they can also be planned manually. and the aerospace industry.com/scl. for the technical implementation of this process. Component SAP SCM 5.sap. for the technical implementation of this process.1 – SAP liveCache SAP SCM 5. the items in a manufacturing order are manufactured for a specific project. such as material requirements planning. based on the requirements for the finished products and components required in the project. Extensive planning steps. Component SAP SCM 5. 4. that is. Extensive planning steps. although they can also be planned manually. This includes the machinery and plant engineering and construction industry. such as material requirements planning. as indicated below.1 – SAP liveCache SAP ERP 6.sap. These orders represent receipt elements for in-house production and external procurement. usually run in the background.7. and evaluation of the planning results. February 2008 43 . This business process is used in discrete industries. Technical System Landscape The following software components are either mandatory or optional.0 Mandatory X X X Optional For more information about the installation of these components. planning according to MRP logic. You can use the order to plan material requirements across all BOM levels. see SAP Service Marketplace at service. The following table provides just one way to implement the business process. as indicated below. Technical System Landscape The following software components are either mandatory or optional.2.1 – SCM Server SAP SCM 5.4 Business Processes of SAP SCM This business process includes analysis.1 – SCM Optimizer Mandatory X X X Optional For more information about the installation of these components. For other combinations. and evaluation of the planning results.8 Production Planning (Discrete Manufacturing) ETO in SCM Overview You can use this business process to carry out engineer-to-order production in SAP SCM. The following table provides just one way to implement the business process. planning according to MRP logic.1 – SCM Server SAP SCM 5. see System Landscape [page 15]. Engineer-to-order production is carried out with reference to a project from the project system. usually run in the background. see SAP Service Marketplace at service.

This business process is designed to meet the requirements of discrete industries. Sales order quantities are delivered from stock and consume the planned independent requirement quantities in Demand Management according to the planning strategy you select. Back flush and settlement are carried out periodically. Technical System Landscape The following software components are either mandatory or optional.7.7. This business process includes analysis. This means that production is controlled without a direct reference to a sales order. and the component supplier industries. You can carry out extensive planning steps.1 Production Planning (Repetitive Manufacturing) MTS in ERP Overview You can use this business process to create a production plan for Repetitive Manufacturing. for the technical implementation of this process. The requirements are generated by demand management (from forecast or demand planning) or by stock levels falling below reporting point levels. Component SAP ERP 6. This includes the consumer goods industry. depending on your business requirements.0 Mandatory X Optional 44 February 2008 . A product cost collector is used to collect actual data and to settle costs. material requirements planning. Various planning tools are available. and evaluation of the planning results. such as the MRP run. not for an individual product. the machine construction and automotive industries. based on a run schedule header. which you can use separately or in combination. Run schedule quantities determine the production quantity and the date. You can create a product cost collector for a single run schedule header or for multiple run schedule headers.3 Production Planning (Repetitive Manufacturing) The area Production Planning (Repetitive Manufacturing) contains the following business processes: Production Planning (Repetitive Manufacturing) MTS in ERP [page 44] Production Planning (Repetitive Manufacturing) MTO in ERP [page 45] Production Planning (Repetitive Manufacturing) CTO in ERP [page 46] Production Planning (Repetitive Manufacturing) MTS in SCM [page 47] Production Planning (Repetitive Manufacturing) MTO in SCM [page 47] Production Planning (Repetitive Manufacturing) CTO in SCM [page 48] 4.com/scl. see SAP Service Marketplace at service. For other combinations. in the background or manually. but for a sales or production order. as indicated below. The following table provides just one way to implement the business process. such as the planning table and sequencing. the electronics industry. You use Repetitive Manufacturing as a make-to-stock production.Master Guide: SAP SCM 2007 4.sap.3.

see SAP Service Marketplace at service. The material is manufactured on the basis of these planned orders.3. You can implement planning at the assembly level for the assemblies that are not influenced by customer requirements. This affects assemblies that contain a large number of finished products.0 Mandatory X Optional For more information about the installation of these components. made up of a forecast or demand planning. which you can use separately or in combination. as indicated below. Requirements are not generated until sales orders are created. Technical System Landscape The following software components are either mandatory or optional. Back flush and settlement are carried out periodically. The system creates one or several planned orders that directly reference the sales order item. depending on your business requirements. Production is only triggered when the sales orders are received. see System Landscape [page 15].sap. and the component supplier industries. Component SAP ERP 6. the result of which is the demand program. Run schedule quantities determine the production quantity and the date. The production planning process includes analysis.2 Production Planning (Repetitive Manufacturing) MTO in ERP Overview You can use this business process to create a production plan for Repetitive Manufacturing. This business process is designed to meet the requirements of discrete industries. such as material requirements planning. 4. see System Landscape [page 15]. Various planning tools are available. for the technical implementation of this process. This includes the machine construction and automotive industries. For other combinations. such as the planning table and sequencing. Demand management. You can create a product cost collector for one run schedule header or for multiple run schedule headers. and evaluation of the planning results. You can use Repetitive Manufacturing in a make-to-order production environment. the electronics industry. usually run in the background although they may also be planned manually. is not used here. February 2008 45 .7.com/scl. not for an individual product or for a sales or production order. A product cost collector is used to collect actual data and to settle costs. The following table provides just one way to implement the business process.4 Business Processes of SAP SCM For more information about the installation of these components. planning according to MRP logic. Extensive planning steps.

and evaluation of the planning results. The business process is designed to meet the requirements of discrete industries including machine construction. For each sales order item. separately or in combination. The procedure it is not used to plan at the finished product level. although they can also be performed manually. Run schedule quantities determine the production quantity and the date. planning according to MRP logic. 46 February 2008 . as indicated below. The following table provides just one way to implement the business process. Extensive planning steps. automotive. to simplify order processing in production. You can create a product cost collector for one run schedule header or for multiple run schedule headers. For other combinations. Back flush and settlement are carried out periodically for multiple sales or production orders at a time. depending on your business requirements.com/scl.7.3. electronics. which includes a forecast or demand plan. The relationships between the components and the operations are saved as dependencies in variant configuration. Requirements are not generated until sales orders are created. You can use Repetitive Manufacturing in a configure-to-order production environment where the system creates one or several planned orders that directly reference a sales order item. the system selects components from a number of possible configurable material variants by evaluating the relevant characteristics and combining them to form a concrete material variant. It is possible to harmonize the material flow between the low level codes. Component SAP ERP 6.3 Production Planning (Repetitive Manufacturing) CTO in ERP Overview You can use this business process to create a production plan for Repetitive Manufacturing. for the technical implementation of this process. The Production Planning process includes analysis. The material is manufactured on the basis of these planned orders and production is triggered when the sales orders are received. You can use various planning tools. The main goals of Repetitive Manufacturing are to evenly distribute the use of production lines. for example dependent components or operations. see System Landscape [page 15]. and component suppliers.sap. Technical System Landscape The following software components are either mandatory or optional. is not used. A product cost collector is used to collect actual data and to settle costs. This procedure is suitable for similar products that have possible characteristics that the customer can define when placing the order. This affects assemblies that contain a large number of finished products. see SAP Service Marketplace at service. and to reduce setup times. such as the planning table and sequencing. Demand management. usually run in the background.0 Mandatory X Optional For more information about the installation of these components.Master Guide: SAP SCM 2007 4. such as material requirements planning. You can plan at the assembly level for assemblies that are not influenced by customer requirements. Selecting a characteristic value can involve the automatic selection of other characteristics.

Technical System Landscape The following software components are either mandatory or optional. This business process is useful if your procurement and February 2008 47 . The material flow between the BOM levels can be harmonized.com/scl. The following table provides just one way to implement the business process. The required quantities for finished products are determined in demand planning. This includes the consumer goods industry. based on planned independent requirements such as forecast values. Incoming sales orders are delivered from the warehouse.1 – SAP liveCache SAP SCM 5. 4. such as material requirements planning. for the technical implementation of this process.4 Business Processes of SAP SCM 4. In make-to-order Repetitive Manufacturing. the electronics industry. Repetitive Manufacturing is suitable for companies that manufacture similar products in large quantities for which manufacturing is not based on sales orders. as indicated below.3.1 – SCM Optimizer Mandatory X X X Optional For more information about the installation of these components. This business process includes procurement planning. This business process is used in discrete industries.3. see System Landscape [page 15]. see SAP Service Marketplace at service. and evaluation of planning results.7. demand plans. analysis. and the component supplier industries. The main aims of Repetitive Manufacturing are to evenly schedule resources and to simplify order processing in production.sap.1 – SCM Server SAP SCM 5. For other combinations. Component SAP SCM 5.7. the machine construction and automotive industries.4 Production Planning (Repetitive Manufacturing) MTS in SCM Overview You can use this business process to create a production plan for Repetitive Manufacturing. The system generates orders for finished products and components to cover the requirements across all BOM levels. although they can also be performed manually. These orders represent receipt elements for in-house production and external procurement. usually run in the background. Extensive planning steps. the in-house production or procurement of products starts when the sales order is received. or stock levels. This business process is suitable for products that have short replenishment lead times for the finished product and all incoming assemblies and components.5 Production Planning (Repetitive Manufacturing) MTO in SCM Overview You can use this business process to create a production plan for Repetitive Manufacturing.

If you have long replenishment lead times for assemblies and components and low costs. The main goals of Repetitive Manufacturing are 48 February 2008 . electronics. see SAP Service Marketplace at service. for the technical implementation of this process.1 – SCM Optimizer Mandatory X X X Optional For more information about the installation of these components. automotive. Technical System Landscape The following software components are either mandatory or optional. This includes the automotive industry. the in-house production or procurement of products starts when the sales order is received. You define the product characteristics when you create the sales order. 4. and can be displayed by selected customer. and the component supplier industries.sap.1 – SAP liveCache SAP SCM 5. You can forecast at the assembly level when the assemblies that are not influenced by customer requirements.1 – SCM Server SAP SCM 5.7. This business process is used in discrete industries including machine construction. forecasting for assemblies is useful in order to reduce the delivery time for the sales order. This business process includes procurement planning.Master Guide: SAP SCM 2007 production costs are high because you can avoid unnecessary storage costs if your forecasts are not accurate. to simplify production order processing. as indicated below. see System Landscape [page 15]. This affects assemblies that contain a large number of finished products. The system generates orders based on sales orders that represent receipt elements for inhouse production and external procurement. This business process is used in discrete industries. usually run in the background. analysis. and evaluation of planning results. and component suppliers. Extensive planning steps.3.6 Production Planning (Repetitive Manufacturing) CTO in SCM Overview You can use this business process to create a production plan for configurable products that are manufactured with Repetitive Manufacturing. The system generates orders that are based on the sales orders and that cover the requirements for all BOM levels. The following table provides just one way to implement the business process.com/scl. This business process is suitable for identical products with characteristics that the customer defines when the sales order is created. For other combinations. Component SAP SCM 5. the electronics industry. In configure-to-order Repetitive Manufacturing. The main goalsof Repetitive Manufacturing are to schedule resources evenly. it is not useful to carry out forecasting at the finished product level. such as material requirements planning. These orders represent receipt elements for in-house production and external procurement. although they can also be performed manually. and to smooth material flow between BOM levels.

such as material requirements planning. see SAP Service Marketplace at service. Extensive planning steps.com/scl.1 – SAP liveCache SAP SCM 5. and to smooth material flow between BOM levels. although they can also be performed manually. and adjustments.4. This business process is carried out in the component Production Planning and Detailed Scheduling (PP/DS) in SAP APO. February 2008 49 .7.7. For other combinations. The following table provides just one way to implement the business process.You can also combine it with other variants in detailed scheduling. see System Landscape [page 15]. such as optimization. analysis. Technical System Landscape The following software components are either mandatory or optional. You can use detailed scheduling to adjust capacity requirements from manufacturing orders to the available production capacity. You can use detailed scheduling with manual scheduling. This business process includes procurement and capacity planning. and analyzing and evaluating planning results. scheduling and creating production orders and operation sequences.4 Business Processes of SAP SCM to schedule resources evenly. This business process includes problem analysis.1 – SCM Server SAP SCM 5.1 – SCM Optimizer Mandatory X X X Optional For more information about the installation of these components. 4. to simplify production order processing.4 Production Scheduling The area Production Scheduling contains the following business processes: Production Scheduling (Manual Scheduling) [page 49] Production Scheduling with Scheduling Heuristics [page 50] Production Scheduling Optimization [page 51] Production Scheduling with Block Planning [page 51] Production Scheduling with Production Campaigns [page 52] 4. for the technical implementation of this process. as indicated below.sap. usually run in the background. You can combine different planning methods and strategies with one another depending on your business requirements. procurement planning is followed by detailed scheduling. Component SAP SCM 5.1 Production Scheduling (Manual Scheduling) Overview In production planning.

Master Guide: SAP SCM 2007

Technical System Landscape
The following software components are either mandatory or optional, as indicated below, for the technical implementation of this process. The following table provides just one way to implement the business process. For other combinations, see SAP Service Marketplace at service.sap.com/scl. Component SAP SCM 5.1 – SCM Server SAP SCM 5.1 – SAP liveCache Mandatory X X Optional

For more information about the installation of these components, see System Landscape [page 15].

4.7.4.2 Production Scheduling with Scheduling Heuristics
Overview
In production planning, procurement planning is followed by detailed scheduling. You can use detailed scheduling to adjust capacity requirements from manufacturing orders to the available production capacity. You can combine different planning methods and strategies depending on your business requirements. Heuristics are planning functions that carry out scheduling for selected objects such as products, resources, operations, or line networks, based on pre-defined rules, including sort and priority rules. In detailed scheduling, planning mostly focuses on resources and operations. You can use detailed scheduling with heuristics for all industries. You can also combine it with other variants in detailed scheduling, such as optimization. For special planning problems, industry-specific heuristics are available (for example, for the metal and paper industries). This business process includes problem analysis, detailed scheduling, and analysis and evaluation of planning results. It is executed in the component Production Planning and Detailed Scheduling (PP/DS) in SAP APO.

Technical System Landscape
The following software components are either mandatory or optional, as indicated below, for the technical implementation of this process. The following table provides just one way to implement the business process. For other combinations, see SAP Service Marketplace at service.sap.com/scl. Component SAP SCM 5.1 – SCM Server SAP SCM 5.1 – SAP liveCache Mandatory X X Optional

For more information about the installation of these components, see System Landscape [page 15].

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4.7.4.3 Production Scheduling Optimization
Overview
In production planning, procurement planning is followed by detailed scheduling. You can use detailed scheduling to adjust capacity requirements from manufacturing orders to the available production capacity. You can combine different planning methods and strategies depending on what the user requires. Heuristics are planning functions that carry out scheduling for selected objects (products, resources, operations, or line networks for each planning focus) based on rules that are stored in the function. This includes sort and priority rules. In detailed scheduling, planning mostly focuses on resources and operations. You can use detailed scheduling with heuristics for all industries. You can also combine it with other variants in detailed scheduling, such as optimization. For special planning problems, branch-specific heuristics are available (for example, for the metal and paper industries). This business process includes problem analysis, scheduling in the detailed scheduling planning board, and analyzing and evaluating of planning results. It is executed in the component Production Planning and Detailed Scheduling in SAP APO.

Technical System Landscape
The following software components are either mandatory or optional, as indicated below, for the technical implementation of this process. The following table provides just one way to implement the business process. For other combinations, see SAP Service Marketplace at service.sap.com/scl. Component SAP SCM 5.1 – SCM Server SAP SCM 5.1 – SAP liveCache SAP SCM 5.1 – SCM Optimizer Mandatory X X X Optional

For more information about the installation of these components, see System Landscape [page 15].

4.7.4.4 Production Scheduling with Block Planning
Overview
In production planning, procurement planning is followed by detailed scheduling. You can use detailed scheduling to adjust capacity requirements from manufacturing orders to the available production capacity. Detailed scheduling with block planning completes the different types of detailed scheduling (detailed scheduling with manual scheduling, heuristics, and optimization). Detailed scheduling with block planning entails forecasting or preassigning resources for products with certain properties for better utilization of capacities. In industries such as metal and paper, orders are scheduled based on predefined planning as well as on delivery dates, priority, and availability.You define which product types and products are combined according to their production requirements. The reason for this is that

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combining these products for production can take advantage of the same production setup and reduce the number of production runs. Specified product sequences and maintenance required in fixed intervals are important, especially for block durations. Blocks can also represent production cycles and periods in which only certain products can be manufactured (planning at characteristics level). Block definitions are determined by technical conditions for production, for example, steel type A is only manufactured every first week, and steel type B every second week. Block planning has no effect on a sequence defined by a setup key. It runs in the blocks. Detailed scheduling with block planning is normally used in the metal and paper processing industries, but it can also be used in other industries, such as food processing, where products with certain characteristics must be grouped into predefined blocks. This business process covers block definitions, scheduling, and analyzing and evaluating planning results. The business process is carried out in the component Production Planning and Detailed Scheduling (PP/DS) in SAP APO.

Technical System Landscape
The following software components are either mandatory or optional, as indicated below, for the technical implementation of this process. The following table provides just one way to implement the business process. For other combinations, see SAP Service Marketplace at service.sap.com/scl. Component SAP SCM 5.1 – SCM Server SAP SCM 5.1 – SAP liveCache SAP SCM 5.1 – SCM Optimizer Mandatory X X X Optional

For more information about the installation of these components, see System Landscape [page 15].

4.7.4.5 Production Scheduling with Production Campaigns
Overview
In production planning, procurement planning is followed by detailed scheduling. You can use detailed scheduling to adjust capacity requirements from manufacturing orders to the available production capacity. A production campaign is a combination of orders that are required to manufacture products on a production line without having to perform major setup activities. Generally, setup and clean-out activities are required on the production resources between campaigns. In SAP APO, the planned and manufacturing orders are combined to manufacture one or more products. Detailed scheduling with production campaigns is mostly used in the process industries (for example, in the chemical, pharmaceutical, and food industries). However, you can also use it in industries in which several orders are grouped together based on certain criteria and must be maintained together. This business process includes performing pre-processing setup, creating clean-out orders, creating the production plan, campaigns, setup and clean-out orders, analyzing and

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5. and managing production campaigns.7. see SAP Service Marketplace at service. It is carried out in the component Production Planning and Detailed Scheduling (PP/DS) in SAP APO.1 – SCM Server SAP SCM 5.com/scl. As soon as a planned order or another request is generated from material requirements planning. For other combinations. The order-relevant data is also added to ensure complete order processing.1 – SCM Optimizer Mandatory X X X Optional For more information about the installation of these components. Process manufacturing supports the following: Production campaigns (equal distribution of setup and clean-out costs) Joint production Mass processing of process orders Active ingredient management and material quantity calculation (cost and quantity calculation is dependent on batch characteristics such as concentrations) February 2008 53 .4 Business Processes of SAP SCM evaluating planning results. and the processoriented electronics industry.7. Technical System Landscape The following software components are either mandatory or optional. for the technical implementation of this process. 4.1 – SAP liveCache SAP SCM 5.sap. The following table provides just one way to implement the business process. You use process orders to monitor production and control cost accounting within a company. where production control and internal activity planning and accounting for products is carried out using orders. food and beverage industries. This business process is used in industries such as the chemical and pharmaceutical industries.5 Manufacturing Execution The area Manufacturing Execution contains the following business processes: Manufacturing Execution (Process Manufacturing) [page 53] Manufacturing Execution (Discrete Manufacturing) [page 54] Manufacturing Execution (Repetitive Manufacturing) [page 55] 4.1 Manufacturing Execution (Process Manufacturing) Overview You can use process manufacturing with process orders in process industries for batchoriented manufacturing based on recipes. Component SAP SCM 5. as indicated below. see System Landscape [page 15]. the information is passed on to shop floor control.

The order-relevant data is also added to ensure complete order processing. Production orders are used to control and monitor production within a company and also to support cost accounting.Master Guide: SAP SCM 2007 HTML-based PI sheets (integrated interface for creating and processing various production-relevant data) Electronic batch records to continuously document the production process (to meet FDA/GMP regulations) In-process monitoring (inspection results in quality management) Integration at field device level (for example.1 – SAP liveCache SAP ERP 6. 4. where production control. As soon as a planned order or other request is generated from material requirements planning. This business process is used in industries with discrete manufacturing.7.sap.2 Manufacturing Execution (Discrete Manufacturing) Overview You can use this business process to carry out work-to-order manufacturing based on bills of material and routings.com/scl. Production order processing supports the following: Collective orders (planned orders or production orders that are linked to one another over several production levels) Joint production Batch-specific material unit of measure (product quantity management) Assembly orders (the system can create an assembly order automatically when you create a sales order) Order splits Mass processing of production orders 54 February 2008 . barcode scanners) Technical System Landscape The following software components are either mandatory or optional. Component SAP SCM 5. the information is passed on to shop floor control. see SAP Service Marketplace at service. see System Landscape [page 15]. internal activity planning.0 X Mandatory Optional X X For more information about the installation of these components. and accounting for materials and assemblies is carried out using orders. For other combinations. such as the automotive industry and mechanical engineering.5. for the technical implementation of this process. as indicated below.1 – SCM Server SAP SCM 5. The following table provides just one way to implement the business process.

Sales order quantities are delivered from stock and consume February 2008 55 . The requirements are generated by Demand Management. Component SAP SCM 5. The main areas of use are industries with discrete manufacturing such as the automotive industry. This means that production is controlled without a direct reference to a sales order. as indicated below. Run schedule quantities determine the dates and quantities.4 Business Processes of SAP SCM In-process monitoring (inspection results in quality management) Technical System Landscape The following software components are either mandatory or optional. Instead. For other combinations.0 X Mandatory Optional X X For more information about the installation of these components.5. The goals of Repetitive Manufacturing are: Creation and revision of production quantities on a period and quantity basis (reduction in individual lot and order-specific processing) Reduction of work in production control and simplification of the back flush You can implement Repetitive Manufacturing if the following applies to your production process: You produce the same or similar products over a lengthy period of time. The following table provides just one way to implement the business process. such as the chemical industry. The costs are settled per material or per version using a product cost collector (product cost by period).com/scl. ERP supports the following variants: You only use Repetitive Manufacturing for make-to-stock production.1 – SCM Server SAP SCM 5. and you do not need to perform controlling based on production orders.3 Manufacturing Execution (Repetitive Manufacturing) Overview You can use Repetitive Manufacturing for production planning and control within repetitive manufacturing and flow manufacturing environments. see SAP Service Marketplace at service.1 – SAP liveCache SAP ERP 6. Routings tend to be simple and do not vary much. see System Landscape [page 15]. or industries with continuous production processes. for the technical implementation of this process. 4. at a certain rate per part or period. You do not manufacture in individually defined lots. you produce a total quantity over a certain period of time.7. for example. Your products always follow the same sequence through the machines and work centers in production.sap.

Component SAP SCM 5. see SAP Service Marketplace at service. 56 February 2008 . you create a product cost collector for the material that is delivered to the sales order stock.1 – SAP liveCache SAP ERP 6. If you are a repetitive manufacturer and work in a make-to-order environment with valuated sales order stock. as indicated below.Master Guide: SAP SCM 2007 the planned independent requirement quantities in Demand Management according to the planning strategy you select. Technical System Landscape The following software components are either mandatory or optional. Production is triggered by sales orders. The costs incurred for the production of the inventory are collected by the product cost collector and can be analyzed there.com/scl. The system creates one or several planned orders that directly reference the sales order item. You use Repetitive Manufacturing in a make-to-order production environment. For other combinations. for the technical implementation of this process. The following table provides just one way to implement the business process.0 X Mandatory Optional X X For more information about the installation of these components.1 – SCM Server SAP SCM 5. see System Landscape [page 15]. A product cost collector is used to collect actual data and to settle costs.sap. on the basis of which material is manufactured.

In case of highly complex planning scenarios. together with SAP liveCache. February 2008 57 .1. the SAP BI embedded in SAP SCM Server is not meant to be used for reporting purposes of your company. Specific business scenarios only require a subset of these components. see the section Business Scenario Overview. that is. Supply Network Planning. SAP APO Optimizer is an optional part of the SCM business scenarios.1 Application Components 5.5 Software Components Overview 5 Software Components Overview This section provides additional information about the most important software components of SAP SCM. It is an advanced planning and scheduling tool that enables real-time decision support and collaborative network optimization across the extended supply chain. You can use SAP APO Optimizer for Detailed Production Scheduling. User-specific optimizers. 5. optimization results improve with increasing CPU time. Embedded SAP BI SAP SCM Server is shipped with an embedded SAP BI 7. SAP SCM Server helps companies synchronize supply chain activities with their partners and excel to improve customer service and order fulfilment. For a scenario-specific overview of components. External optimizers can be called and run in batch mode from the SAP SCM Server. and Sequencing.0 that. This technology integrates different planning methods in one planning system to utilize the following:: Optimizers guided by global objective functions based on key performance indicators. such as external optimizers.1.1 SAP Supply Chain Management Server (SAP SCM Server) SAP Supply Chain Management Server (SAP SCM Server) is part of the SAP Supply Chain Management application suite.2 SAP SCM Optimizer SAP has developed an innovative and flexible APS optimization solution that opens SAP SCM's advanced planning and scheduling capabilities to an external optimization technology: The Optimization Extension Workbench. Transportation Planning and Vehicle Scheduling. This strategy enables SAP SCM customers to take advantage of both the SAP SCM existing set of optimizers and company-specific optimization software. SAP SCM Server uses the embedded SAP BI architecture to plan for technical reasons (such as using info cubes). 5. enhances the performance of forecasting and replenishment tasks.

0. timely shipments of replenishments.1. and advanced shipping notification and invoice creation.3 SAP ERP 6. SAP EM can automatically inform the decision maker of critical situations in which action is required (for example. and evaluate event messages with application data from the supply chain network. processes.4 SAP Event Management SAP Event Management (SAP EM) offers the possibility to process application objects in various application systems and to track events for individual objects.6 SAP Supply Network Collaboration (SAP SNC) SAP Supply Network Collaboration (SAP SNC) is an application that supports participants in a complex supply chain network to collaborate efficiently with each other.sap. update. for example.1.com/instguides SAP Business Suite Applications SAP ERP mySAP ERP 2005 Planning. 5. measure. Employ checking processes and notify persons responsible for controlling events SAP EM checks the Supply Chain Event Management-relevant objects as soon as they are saved in the application system.5 SAP SCM . among other things.0 Product instance SAP ERP 6. It is the central component of SAP ERP 6. production end. purchase order transfer.0.1. 5. It also supports forecasting processes and work order collaboration.0 and is the successor component of SAP ECC 5.Web Communication Layer (SCM WCL) SCM WCL is the SAP front end that offers information access and full supply chain visibility for SAP EM using the Internet. SAP SNC supports.1. It allows you to: Monitor. and evaluate business processes SAP EM automatically monitors events such as.SAP ECC Server (SAP ERP Central Component) consists of product version SAP ECC 6. e-mail or the Internet) 5. and the successor of the former SAP R/3 releases. For more information. goods issue. or parts of these throughout the entire supply chain. 58 February 2008 .0. or unreported proof of delivery SAP EM can automatically transfer data to a data warehouse system that uses key performance indicators to aggregate performance data . the management of inventories by suppliers and customers. automatic re-scheduling of a process step when a delay has occurred). Exchange and query information between partners (using.5 Software Components Overview 5. SAP EM can link. see the ERP Master Guide on SAP Service Marketplace at service.

An SQL class provides access from the LCA routines (formerly known as COM routines) to the SQL data.2. requirements.5 Software Components Overview 5. high-speed processing of very large data volumes. This provides the flexibility needed in today’s fast-changing business world. SAP liveCache has an SQL interface that is used to communicate with the SAP instances. LCA Routines for SAP SCM ABAP programs and SAP APO optimizers use native SQL for communicating through the standard SAP database interface to liveCache. As a result. 5.2 SAP liveCache (SCM LC) SAP liveCache for SAP SCM SAP liveCache is based on SAP DB technology and ensures the highest SAP SCM performance.sap.1 SAP Exchange Infrastructure (SAP XI) Based on a native Web infrastructure that leverages open standards. February 2008 59 . Instead of directly coding point-to-point interfaces for each new component. The LCA routines are part of a dynamic link library that runs in the process context of the SAP liveCache instance. and routing.com/scm.2. The LCA routines have direct access to the objects stored in the SAP liveCache and can change them. This includes creation and deletion of objects in the SAP liveCache. SAP liveCache is SAP's state-of-the-art memory-based computing technology for real-time. SAP Exchange Infrastructure (SAP XI) makes it possible to manage the broad diversity of highly heterogeneous components from a multitude of vendors and to run in various technological environments. It also establishes an infrastructure for business process management and high-performance execution within and across organizational boundaries. With native SQL. ABAP programs call stored procedures in the SAP liveCache that point to Component Object Model (COM) routines written in C++. optimization and planning tasks can be performed in minutes or seconds. the exchange infrastructure allows instant plug-in of new components. see SAP Service Marketplace at service. It includes technical functions. Exchange-based process integration removes the problems of direct connections by extracting shared collaboration knowledge. queuing. and performance recommendations. These shared business semantics ease the integration of both external and internal components. Built-in business functionality in the form of C++ object methods Semantic synchronization with the SAP database Ready to exploit 64-Bit technology For more information about liveCache technology infrastructure. mapping. The main capabilities of SAP's memory-resident object-oriented technology are the following: Application logic execution where the data is stored in order to avoid network overload Aggregation of relational data structures retrieved from the database into applicationspecific optimized data representations in main memory. The integration capabilities capture shared business semantics and act as a mediator between the services and their technical implementations. and it reduces integration costs compared to the direct connection approach.2 Technology Components 5. such as Web service discovery.

com/scl).1 – SAP liveCache Software Component Key: X = mandatory. For other ways to implement the business processes.0 (2004s) usage type BI SAP NW 7.0 .sap.6 Software Component Matrix 6 Software Component Matrix This section provides an overview of the components that are used by each SAP SCM business process.1 SAP ERP 6.1 to implement each business process.1 – SCM Server SAP CRM 2006s Demand Planning & Forecasting Demand and Supply Planning Safety Stock Planning Distribution Planning Supply Network Planning Heuristic Supply Network Optimization X X X X X X X (X) X X X X Multilevel Demand and Supply Matching X X 60 February 2008 SAP SNC 5. There are software requirements for each component below which are not explicitly mentioned in this documentation.1 – SCM Optimizer SAP SCM 5. see the Scenario Component List Viewer on SAP Service Marketplace (service. (X) = optional SAP NW 7. SAP SCM Business Processes Process Group Business Process SAP SCM 5. This Master Guide provides one way that is valid for SAP SCM 5. The requirements are documented in the relevant installation guides.0 (2004s) usage type PI SAP SCM 5.

1 – SAP liveCache SAP SCM 5.1 – SCM Optimizer SAP SCM 5.0 (2004s) usage type BI SAP NW 7.1 – SCM Server SAP NW 7. (X) = optional SAP SCM 5.0 Transportation Transportation Planning Transportation Execution Freight Costing Parts Forecasting X X (X) X X X X X X X X (X) X (X) Services Parts Planning Stocking List Determination Safety Stock Calculation Distribution Requirements Planning Pull Deployment Inventory Balancing Parts Monitoring X X X X X (X) (X) (X) X X X X X (X) X (X) (X) ATP Availability Check Production Scheduling with Capacity Reservation MRP-Based Detailed Scheduling Sourcing Supersession PP/DS X X (X) (X) X X (X) X Order Fulfillment X X X X (X) (X) February 2008 61 SAP SNC X .0 (2004s) usage type PI SAP CRM 2006s SAP ERP 6.6 Software Component Matrix SAP SCM Business Processes Process Group Business Process Software Component Key: X = mandatory.

6 Software Component Matrix SAP SCM Business Processes Process Group Business Process Software Component Key: X = mandatory. (X) = optional SAP NW 7.1 – SAP liveCache SAP NW 7.0 (2004s) usage type BI SAP SCM 5.1 – SCM Server SAP SCM 5.0 Production Planning (Discrete Manufacturing) MTS in ERP Production Planning (Discrete Manufacturing) MTO in ERP Production Planning (Discrete Manufacturing) CTO in ERP Production Planning (Discrete Manufacturing) ETO in ERP Production Planning (Discrete Manufacturing) MTS in SCM Production Planning (Discrete Manufacturing) MTO in SCM Production Planning (Discrete Manufacturing) CTO in SCM Production Planning (Discrete Manufacturing) ETO in SCM X X Manufacturing (Planning & Operations) X X X X (X) X X (X) X X (X) X X (X) 62 February 2008 SAP SNC .0 (2004s) usage type PI SAP CRM 2006s SAP ERP 6.1 – SCM Optimizer SAP SCM 5.

1 – SCM Server SAP SCM 5.6 Software Component Matrix SAP SCM Business Processes SAP SCM 5.1 – SAP liveCache Process Group Business Process Software Component Key: X = mandatory.1 – SCM Optimizer SAP NW 7.0 Production Planning (Repetitive Manufacturing) MTS in ERP Production Planning (Repetitive Manufacturing) MTO in ERP Production Planning (Repetitive Manufacturing) CTO in ERP Production Planning (Repetitive Manufacturing) MTS in SCM Production Planning (Repetitive Manufacturing) MTO in SCM Production Planning (Repetitive Manufacturing) CTO in SCM Production Scheduling (Manual Scheduling) Production Scheduling with Scheduling Heuristics Production Scheduling Optimization X X X Manufacturing (Planning & Operations) X X (X) X X (X) X X (X) X X X X X X X February 2008 63 SAP SNC .0 (2004s) usage type PI SAP CRM 2006s SAP SCM 5.0 (2004s) usage type BI SAP ERP 6. (X) = optional SAP NW 7.

1 – SCM Optimizer SAP NW 7.0 Production Scheduling with Block Planning Manufacturing (Planning & Operations) Production Scheduling with Production Campaigns Manufacturing Execution (Process Manufacturing) Manufacturing Execution (Discrete Manufacturing) Manufacturing Execution (Repetitive Manufacturing) X X (X) X X (X) (X) (X) X (X) (X) X (X) (X) X 64 February 2008 SAP SNC .0 (2004s) usage type PI SAP CRM 2006s SAP SCM 5.6 Software Component Matrix SAP SCM Business Processes SAP SCM 5.1 – SCM Server SAP SCM 5.1 – SAP liveCache Process Group Business Process Software Component Key: X = mandatory. (X) = optional SAP NW 7.0 (2004s) usage type BI SAP ERP 6.

com/instguides SAP Business Suite Applications SAP ERP SAP ERP 2005 SAP ERP 6.1 Installation Guide – SAP Solution Manager Installation Guide – SAP Event Management – WCL 5.0 (2004s) Installing the ERP Server Installing the SCM Server service.sap.sap.sap.7 References 7 References Below is a list of referenced documentation for SAP SCM and its business processes: Title Installation Guides Installation Guides of SAP ERP 6.sap.1 Installation Guide – SAP NetWeaver 7.com/instguides SAP Business Suite Applications SAP SCM SAP SCM Server Using SAP SCM 5.com/instguides SAP Components SAP Solution Manager service.com/instguides SAP Business Suite Applications SAP SCM SAP EM Using SAP EM 5.1 SAP Event Management – WCL 5.sap.1 service.1: Installation Guide February 2008 65 .com/ installNW70 Purpose Where to Find Installing the XI Server Installing the BI Server Installing Solution Manager Installing SAP Event Management – WCL 5.1 Server service.0 Installation Guide – SAP Supply Chain Management 5.0 service.

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