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D2 04 - APO 5-7 Update-FINAL

D2 04 - APO 5-7 Update-FINAL

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SCM CVN Event - Philadelphia

APO – Upgrade from 5.0 to 7.0

Eric Simonson – SCM Solution Management July20, 2011

Agenda

APO – Differences between 5.0 to 7.0
1. 2. 3. 4.

Demand Planning Supply Network Planning Production Planning Detailed Scheduling Global Available to Promise

© 2010 SAP AG. All rights reserved. / Page 2

Continuous Innovation Around a Stable Core

SAP Enhancement Packages for Applications

Industries ERP 6.0 CRM PLM SCM SRM 7.0 7.0 7.0 7.0

Stable core defined to be SAP ERP 6.0 today, extended to core applications of SAP Business Suite in 2008 Leverage proven functionality Continuous innovation delivery via enhancement packages, selectively adoptable Continuous service enablement Uniform availability of industry best practices

SAP Business Suite
(SAP enhancement package 1 for)

SAP NetWeaver 7.0

(as foundation for SAP Business Suite)

Stable Core

© 2010 SAP AG. All rights reserved. / Page 3

All rights reserved. User-defined BAdI Enhanced Chart Engine (SNP also): Generate graphics content with new framework and well defined XML interface. Count.Demand Planning Enhancements – SCM 2007 (5. Minimum. Use higher flexibility in customizing and capability of displaying more chart types Management of obsolete (and delete) characteristic value combinations (CVC) CVC doesn’t have master data (master data: product and location including items which are marked for deletion) CVC doesn’t have planning data (no planning data in LiveCache) © 2010 SAP AG.1) DP Interactive Planning – Ease of Use Display a chart in a popup window only showing the values selected by a user New context menu calculation functionalities: Maximum. / Page 4 .

Demand Planning Enhancements – SCM 2007 (5.1) Maintain Selection Organization (/sapapo/mc77) Button to create a Selection Variant shall display the shuffler window in order to use the interactive selection functionality Shuffler window shall be adjusted to keep the previous condition selection when the “Show property” is changed Mass Maintenance for Selection Variants – Planning Book selector dropdown list Copy Selection Variants assignment from one user to another © 2010 SAP AG. All rights reserved. / Page 5 .

but faster and easier to implement – “low hanging fruit“ Combines statistical forecasting with causal analysis Calculates fluctuation due to inventory in the retail supply chain (which is not visible to the manufacturer) Works with Life Cycle Planning UI adjustment for the end user to set up the forecasting method as well as changing parameters in interactive planning Has its own new alerts: Diagnosis group using MAPE Insufficient data to execute algorithm MAPE upper limit exceeded Calculated MAPE greater than statistical forecast MAPE © 2010 SAP AG.0 Forecasting Enhancement “MLR with POS” Improved demand visibility and response leads to higher forecast accuracy Exact Method Using detailed POS data (e. / Page 6 .Demand Planning Enhancements – SCM 7. but time & resource-intensive – CPU & user Qualitative Method Include POS data in existing processes with no or marginal process extension benefit potential maybe not be as high as exact methods.g. All rights reserved. by store/sku/day) to create a store level POS forecast and include replenishment parameters to calculate impact on manufacturer supply chain Highest benefit potential.

All rights reserved.Forecast in Interactive Planning Run & adjust forecast in interactive planning Key figures: Forecast Shipment history POS history Statistical forecast Inventory flux Adjust forecast parameters in interactive planning on the fly: Forecast / history horizon or number of periods Statistical forecast model & smoothing factors Key Figure & version Other parameters View messages © 2010 SAP AG. / Page 7 .

0 Continued Statistical Forecast Enhancement – Re-Initialization & Trend Dampening Introduce new means of limiting or dampening the trend while also providing a means to make more generally applicable settings use a trend dampening profile set an upper limit for the trend value set an upper limit for the forecast use the trend dampening factor Phi (applicable only for exponential smoothing methods) Improve reaction of exponential smoothing methods (for certain smoothing parameters) to structural changes in the data by re-initialization.Demand Planning Enhancements – SCM 7. A structural change is detected in the historical data by means of 2 measures: Tracking Signal (TS) & Normalized Error (NE) When the structural change was identified the forecast parameters (basic value. seasonal indices) are reinitialized from the historical values of the period that was processed and the periods that follow Offer new BAdI method for additional white noise test calculation New white noise test is based on the Box-Pierce test Method= /SAPAPO/SCM_FCSTPARA -> WHITE_NOISE_TEST © 2010 SAP AG. All rights reserved. / Page 8 . trend value.

/ Page 9 .Structural change in history Structural change © 2010 SAP AG. All rights reserved.

Demand Planning Enhancements – SCM 7. All rights reserved. readiness and completeness of data Functional Enhancements Flexible BI structures to store incoming forecast data New IDOC functionality for IDOC types “DELFOR” / “PROACT” Customizable settings for analyzing customer forecast data Forecast analysis process run Waterfall analysis in structured excel format © 2010 SAP AG. completeness of data) Check tolerances to compare different versions of customer forecasts Provide waterfall analysis of customer forecast Powerful customer forecast analysis dashboard Intercept customer forecast and analyze tolerances. / Page 10 .0 Continued Customer Forecast Management Objective of new development Integrate customer forecast to APO Demand Planning Use customer forecast to shape demand Receive and analyze customer forecasts (readiness.

Requires mandatory manual review/approval © 2010 SAP AG. / Page 11 . All rights reserved.Customer Forecast Analysis Dashboard View customer forecast data grouped according to alerts generated during the forecast analysis run You can filter the forecasts. Use: Netweaver Business Client Internet Browser Forecast duration not for entire expected horizon Forecast not received per expected frequency New Forecast exceeds specified tolerance limits New Forecast Received. change predefined queries or create new ones. and you can also personalize the table for displaying the results of the query.

/ Page 12 . creating adjusted customer forecasts. Approve and release for downstream planning Per profile– Comparison of new customer forecast with last customer forecast Adjust Customer Forecast as needed Per profile– Comparison of new customer forecast with new adjusted forecast © 2010 SAP AG.CFM Dashboard . All rights reserved. Release the data to Demand Planning by approving the data on the Customer Forecast Management overview or detail screen.Detailed View Make the necessary adjustments to the data.

All rights reserved.0 1. Demand Planning Supply Network Planning Production Planning Detailed Scheduling Global Available to Promise © 2010 SAP AG. 2. 3.Agenda APO – Differences between 5.0 to 7. / Page 13 . 4.

1) Profitability Driven Supply Chain Planning SNP Optimizer can consider penalty groups to prioritize customers or customer segments Optimizer can consider quantity based penalty costs to prioritize larger orders Layered SNP Optimization to sequentially plan customer segments according to their importance Use Set-up Matrix in SNP optimization to optimize block schedule Display of sequence information in SNP interactive planning to evaluate optimization result Create Capacity Reservation proposal from SNP to ensure most profitable capacity utilization Generate block proposal from SNP to minimize set-up costs and define most profitable production schedule Shelf Life in SNP Display shelf life data of demands.Supply Network Planning Enhancements – SCM 2007 (5. batch determination for delivery creation) *Prerequisite: SAP ECC 6. receipts. / Page 14 . All rights reserved. and expiring/wasted goods and shelf life based stock balance Propagate shelf life data of demands (for example: customer orders) across the supply chain Generate alerts for goods that will expire or for shelf life mismatches between demands and stocks Integrate shelf life data of purchase requisition to ERP (*) for further processes in ERP (purchase order. stocks.0 EhP03 © 2010 SAP AG.

Profitability Driven Supply Chain Planning screen shots © 2010 SAP AG. / Page 15 . All rights reserved.

Production orders are created even if there is no real demand In Interactive Planning minimum build quantities are defined as time series key figure on location product level CTM engine can now also be used with Linux platform with similar performance and memory consumption as windows server *Prerequisite: SAP ECC 6.Supply Network Planning Enhancements – SCM 2007 (5. All rights reserved. / Page 16 .1) Continued Subcontracting Enhancements Subcontract information record allows several production versions to be defined per subcontract vendor/material relationship. One level push of surplus supply happens according to the outbound quota.0 © 2010 SAP AG. Lot sizes as well as transportation and handling resources are now considered during the supply distribution Minimum Production Quantity: In order to utilize given capacities a minimum level of production is necessary. ensuring an efficient utilization of existing capacities (*) Planning of the subcontractor production lines Planning which bill of material will be used for the subcontract build Consider preferred subcontractor production lines by priorities or costs depending on the planning algorithm used Enable planners to perform manual adjustments and create subcontract purchase requisitions manually to incorporate any new information into the planning results Enable a seamless integration with R/3 (*) Capable to Match Enhancements Supply Distribution: Incorporated (before or after) into CTM planning run.

1) Continued Optimization Enhancements Quota Arrangements: SNP Optimization respects time-dependent inbound quota arrangements on procurements from source locations.0 EhP03 . / Page 17 *Prerequisite: SAP ECC 6. external suppliers and in-house production Receipts Bounds: SNP Optimization respects limits (lower and upper bounds) on TOTAL RECEIPTS of location products. Mass maintenance: /SAPAPO/TSKEYFMAIN SNP Optimizer engine can now also be used with Linux platform with similar performance and memory consumption as windows server © 2010 SAP AG. All rights reserved.Supply Network Planning Enhancements – SCM 2007 (5.

Supply Network Planning Enhancements – SCM 2007 (5.0 EhP03 . / Page 18 *Prerequisite: SAP ECC 6.1) Continued SNP Interchangeability Interchangeability Master Data can be transferred from SAP ERP (*) system Single discontinued part from Material Master in ERP with Effective-Out Date & Follow-up material defined. Stock is forwarded over the whole supersession group Algorithm for forwarding stock using Form–Fit–Function (FFF) classes is enhanced Consideration of Interchangeability rules at target location Heuristic and optimization based Deployment consider interchangeability of products Supports Fair Share Rule A (Prop. Create integration model with simple discontinuation active. All rights reserved. Based upon Demands) Visualization of the results created by deployment: New key figures for confirmed substitution demand and receipts are introduced BADIs are introduced to control how existing stock is used up and to control handling of horizons © 2010 SAP AG.

/ Page 19 . All rights reserved. © 2010 SAP AG.Interchangeability within SAP APO Modules SAP APO Application Discontinuation (forward) Supersession (full) FFF classes DP SNP Deployment X CTM PPDS GATP X X X X X X X X X X X X X The table gives a brief overview of which interchangeability scenarios are compatible with which SAP APO application. In the individual applications there are some restrictions on using product interchangeability and other functions.

All rights reserved. percentage value of coverage of Master Data More detailed information about failures in LLC calculation failed. deployment etc. or is using the background screen in dialog mode Starts Planning Area Initialization © 2010 SAP AG.g. optimizer. e. a list of problematic master data is displayed Navigation to incorrect Master Data is possible directly from the Application Log Significant performance improvements in entering SNP Interactive Planning Table SNP Master Data Queue Performance Improvements SNP Master Data Queue is updated in the background (as default setting) When user enters interactive planning table (~ 80%) When user Starts an SNP planning run (heuristics.) from interactive planning When user schedules a background job.0 Low Level Code Determination Objective: To enhance the usability of the low level code (LLC) determination for the SNP heuristic planning & to improve the performance of the SNP interactive and background planning Enable LLC determination for selected Master Data in case of Supply Network Planning (SNP) LLC determination for SNP is integrated to the Process Chain Tool Provision of Information regarding Quality of LLC calculation.Supply Network Planning Enhancements – SCM 7. / Page 20 . e.g.

when Lot Sizes are set at the Destination Location Using BAdI /SAPAPO/SNP_HEU makes it possible possible to use these inbound quota arrangements as part of the planning run Further info in OSS Note 1260960 VMI Enhancements Transfer of intransit consignment special stock (with ERP EhP4) Integration of consignment special stock in a third party logistic provider scenario (ERP SD .0 Continued SNP Heuristics Improvements Current Behavior: The SNP Heuristic does not consider the Quotas set in Inbound Quota Arrangements.Supply Network Planning Enhancements – SCM 7. / Page 21 .special stock partner modeling) Split of TLB shipment and appropriate mapping to ERP sales order types if a parallel consigned and non consigned scenario is used Creation of ship-to location (“customer”) products in SCM via CIF based on customer master data in ERP Automatic ATP check of TLB shipments published to ERP © 2010 SAP AG. All rights reserved.

Business Function CA_CIF_INILOAD_01 need to be activated. Quickly and reliably reports problems that occur. All rights reserved.0 Continued CIF Enhancements All correct material master data and product data structure objects in an integration model are transferred from SAP ERP to SAP APO The erroneous master data are not transferred to SAP APO Transaction: /sapapo/cfmincr Incorrect master data are collected in the integration model: If one Master Data object fail in a Logical Unit of Work (LUW) then the whole LUW fail.com/monitoring © 2010 SAP AG. / Page 22 . All the objects in that LUW have to be reintegrated.Supply Network Planning Enhancements – SCM 7.sap. a parallel CIF load logic has been implemented Prerequisite: ERP EhP04. SNP Master Data Monitoring integrated into the CCMS Monitor CCMS = Computing Center Management System Flexible and universally applicable infrastructure with which you can monitor the entire IT landscape centrally. More info at http://service. Re-transfer of these master data objects to SAP APO can be easily triggered after the master data are corrected To enhance the performance in transferring product data structure objects from SAP ERP into SAP APO.

4.0 1.Agenda APO – Differences between 5. 3. All rights reserved. 2.0 to 7. / Page 23 . Demand Planning Supply Network Planning Production Planning Detailed Scheduling Global Available to Promise © 2010 SAP AG.

/ Page 24 . leads to customer getting reliable delivery date promises and better visibility of production capacity Block Planning Proposals from SNP Propose blocks from resource load after SNP optimizer run Propose characteristic requirements. start date and length for download to block maintenance Download can be done for definable time interval Optimal length and sequence of blocks regarding set-up costs.Production Planning & Detailed Scheduling Enhancements – SCM 2007 (5.1) Capacity Reservations Define “Demand Characteristics” vs. All rights reserved. “Production Characteristics” (Blocks) that can reserve capacity within bucket for strategic customer requirements that meet the defined criteria Goal: Guarantee most profitable capacity utilization while improving production lead times. profits and existing requirements Capable To Promise (CTP) Enhancements Check capacity reservations Check allocations on semi-finished products in multilevel CTP (Badi required) Pegging Alternatives: Automatic proposal of receipt allocation with the ability to interactively assign receipts to order requirements © 2010 SAP AG.

4. MRP in ERP Production Orders.1) Continued MRP Based DS (process flow) 1. 3.0 EhP03 Continuous Improvements Delta report for manual reservations Copy the shelf life dates from the SNP orders to PP/DS (order specific) CIF Post Processing & CIF Restart [Report /SAPAPO/CIF_EMRG_QINSCHED (for SCM inbound)] © 2010 SAP AG. Material and Resource Campaign Planning Enhancements – Usability & Integration Merge campaigns in the graphical planning board Split campaign in the graphical planning board Move orders via drag&drop from one campiagn to another campaign Select all order of a campaign in receipts view Add external campaign number information from ERP to SAP APO (*) Delta reporting for campaigns (*) *Prerequisite: SAP ECC 6. / Page 25 .Production Planning & Detailed Scheduling Enhancements – SCM 2007 (5. only Plant. Planned Orders and Purchase Requisitions are transferred to SAP APO Scheduling for all of these objects is performed in SAP APO – Detailed Scheduling Scheduled dates for all of these objects are transferred to ERP Note: No PDS/PPM in SAP APO. All rights reserved. 2.

sub-assemblies and purchase requisitions. to the selected order Enhance the Product Planning Table for display of cross location parameters New Cross Location Chart: Provides the planner a consolidated view of the cross location planning attributes. Delete Dependent Order Network: Deletes all pegged orders downwards.e. to visualize distributed relationships Characteristics and configuration filters Display of Production Output in periodic format for the resource Multiple loading of periodic charts Enhanced Block Maintenance Heuristics Rescheduling of orders when a block is modified or the sequence of blocks is changed The links between operations and blocks are kept intact. / Page 26 .0 Characteristics Based Cross Location Planning Enhance the heuristics functionalities of PP/DS for sophisticated Cross Location Planning Interactive Sourcing: Enables the planner to decide on the source of procurement based on the availability of key components and key resource capacity Descriptive Characteristics Propagation: Propagation of descriptive (Commercial) characteristics across location and production levels to enable consumption and capacity reservation Shelf Life Propagation: Propagates the shelf lives of the demand across locations and production levels Demand Propagation: Enables the planner to propagate demand across locations. if possible Operations are rescheduled according to the DS strategy profile © 2010 SAP AG.Production Planning & Detailed Scheduling Enhancements – SCM 7. All rights reserved. i.

Production Planning & Detailed Scheduling Enhancements – SCM 7. / Page 27 .0 Continued Deployment with PPDS Deployment functionalities available for PP/DS for both Make-to-Stock and Make-to-Order segment PP/DS Deployment has similar capabilities as SNP Deployment It confirms quantities that really can be transferred and changes the planned stock transfers accordingly ATD quantity is calculated based on the ATI and ATR categories Characteristics based deployment Consideration of subset of deployment relevant characteristics defined in the characteristic profile Deployment only for identical characteristics values Only Pull Deployment Possible CTM with PP/DS Master Data will now consider: Shelf Life Data Block Planning Object dependencies for order generation Selection Conditions Procedures with/without reference characteristics Activity Valuation Variant tables © 2010 SAP AG. All rights reserved.

and will show if this constraint has been violated Order Header has been enhanced to include the Resource Network ID Finite Tank Planning Ability to develop a feasible plan while considering capacity limitations of storage resources Tank selection and order creation is now part of the PPDS Optimizer run. It will create feasible orders based upon the “Max Fill” of the modeled container resources New Master Data element “Product Storage Definition” has been created to allow for the modeling of enhanced product flow. Supported for both PPM & PDS.0 Continued Resource Networks Used to model restrictions of the flow of product through the plant based on the physical abilities to connect resources Reduces the number of Master Data permutations in the PPM & PDS by eliminating the need for mode coupling New Master Data element will be stored within additional tables in APO and can be changed Resource Network links can be prioritized Will constrain within orders as well as cross orders New Alerts have been created. / Page 28 .Production Planning & Detailed Scheduling Enhancements – SCM 7. Can also be integrated from R/3 Product Flow master data Pegging will be considered from a specific storage resource Blending (no reaction) in a Mixer resource will also be supported © 2010 SAP AG. All rights reserved.

/ Page 29 . 4. All rights reserved. 2.0 to 7.Agenda APO – Differences between 5. Demand Planning Supply Network Planning Production Planning Detailed Scheduling Global Available to Promise © 2010 SAP AG. 3.0 1.

can be defined. % can be defined by Manual (user defined) Automatic by system © 2010 SAP AG. Min. & Max. / Page 30 .1) BOP Equal Quality Distribution (EQAL) Goal: To fairly redistribute available quantities among items during BOP in case of supply shortage. Two Distribution Methods: Value Based All items get the same minimum and up to a maximum quantities and remainder is distributed in the order of the sorter.SCM 2007 (5. Distributed proportioned quantities that exceed maximums or fall below minimum will be adjusted. All rights reserved. Percentage Based All items get a given % of their original required quantities.Global Available to Promise .

The update of characteristic combinations and time series in DB has been enhanced to meet high volume requirements Planning Area can be bypassed using BAPI_APOPAL_INSERT Enhanced Allocation Characteristic Updates Generated selection view allows users togive restrictions based on the characteristic combinations Added additional option “Backward Consumption from Nearest Bucket“ in addition to always consuming the oldest first Subcontracting in MATP (Enhanced) – Flow on following slide © 2010 SAP AG.Global Available to Promise . / Page 31 . All rights reserved.SCM 7.0 BOP Enhancements De-integration of BOPI from Product View Performance Improvements BOP update performance for STOs improved by Variant Split Sorts all items of one STO into one variant and thus prevents locking issues Adoption of Scheduling Results in BOP Reuses the scheduling results from the ATP check in the batch backorder processing and sends them to the OLTP system Update multiple ERP documents per queue Allocation Enhancements Performance Improvements.

CP1: plant is provider .CP2: D-Center is provider CP2 RBA FP: Finished Product CP: Component : Flow of goods © 2010 SAP AG. All rights reserved. / Page 32 .Scenario & Process Description – Flow Subcontracting with RBA Customer orders FP at plant ATP-check at plant: No stock! RBA-check at plant: alternative location: Vendor Subcontracting activated… BOM explosion at vendor: CP1 and CP2 required D-Center Customer Plant FP ATP FP My company Vendor/ Subcontractor RBA FP BOMExplosion CP1 RBA CP1 CP2 RBA-ATP-check at vendor: .

com service.com/rkt-scm Q&A Thank you for your interest! © 2010 SAP AG. developments. Please note that this document is subject to change and may be changed by SAP at any time without notice.simonson@sap. product strategy.” © SAP AG 2010 / .sap. This document contains only intended strategies.SAP SCM Eric Simonson eric. All rights reserved. and/or development. / Page 33 “This presentation is a preliminary version and not subject to your license agreement or any other agreement with SAP. and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business. SAP assumes no responsibility for errors or omissions in this document.

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