Hana Simplification list

30thth july 2018

Copyright © 2012 Mahindra & Mahindra Ltd. All rights reserved. 1

 Simplified Sourcing
 Simplification List Item Description
 In MRP, the system calculates material shortages, then the lot sizes, and then it determines the sources of
supply. In lot sizing, the system can decide to cover several material shortages with just one material receipt.
After lot sizing, the planned material receipts and their requirement dates and quantities are known.
Subsequently, sourcing determines whether the required quantity is manufactured or purchased and, if
purchased, from which supplier. The basic idea of this simplification is a reduced set of possible sources of
supply with a clear and symmetric definition that do not require any additional settings in the material master
or in customizing. In addition, quota arrangements are always considered if they exist. Consideration of quota
arrangements is not dependent on any material master attributes.
 Business Impact
 SAP S/4HANA supports the following types of sources of supply:
 • If the material is manufactured, production versions are the only valid source of supply (irrespective of any
material master attributes or customizing).
 • If the material is purchased, delivery schedules, purchasing contracts, and purchasing info records are valid
sources of supply even without using source list records.
 If defined, quota arrangements will always be taken into consideration.
 Required and Recommended Action(s)
 Make sure you have production versions for all manufactured materials (using the Production Version
Migration Report)

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LSMW LEGACY SYSTEM MIGRATION
WORKBENCH
 The LSMW (Legacy System Migration Workbench) tool
(transaction code LSMW) is still available within SAP
S/4HANA on-premise but not considered as the migration
tool. LSMW might propose incorrect migration interfaces
that cannot be used in SAP S/4HANA anymore
Instead, SAP S/4HANA data migration content called SAP
Rapid Data Migration based on SAP Data Services
software is offered to migrate data into SAP S/4HANA (on
premise). This content has been specifically built for the
new SAP S/4HANA target system, its interfaces and data
structures. The content is free of charge and can be
downloaded under the link above. There are two ways to
leverage the content 3
 JOB SCHEDULING
 SAP S/4HANA contains a new component which
automatically schedules certain technical background jobs.
Deleting or modifying such jobs manually (via transaction
SM37) will not have a lasting effect since the automation
mechanism will re-schedule these jobs with predefined
attributes. Job Definitions can be customized or
deactivated via transaction SJOBREPO.
 After the upgrade/migration to SAP S/4HANA, apply the
correction from note 2499529 also in your new system.
This correction will ensure that automatic job scheduling
by Technical Job Repository will commence once report
BTCTRNS2 is executed by the conversion team. Be sure
to have deactivated unwanted job definitions (for example
SAP_REORG_JOBS) in SJOBREPO by that time
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Request for Quote
 The previous concept was based on Request for Quote
with a mandatory Supplier Field. In addition it was only
possible to enter one Supplier Quote per Request for
Quote. This does not fit to different Sourcing Integration
Scenarios (Example Ariba Sourcing, Ariba Spot
Quote€¦).With the new concept, the behaviour of the
system allows to send RFQ via Fiori App to external
sourcing platforms without a Supplier included and to
receive from them multiple Supplier Quotes.
 Following IDOCS and Transactions related to Request for
Quote are not considered as the target architecture
(Functionality available in current SAP S/4HANA delivery
but not considered as future technology. Functional
equivalent is not available). 5
RFQ Simplified Transaction

 The previous concept was based on Request for Quote with a mandatory Supplier Field. In addition
it was only possible to enter one Supplier Quote per Request for Quote. This does not fit to different
Sourcing Integration Scenarios (Example Ariba Sourcing, Ariba Spot Quote€¦).With the new concept,
the behaviour of the system allows to send RFQ via Fiori App to external sourcing platforms without
a Supplier included and to receive from them multiple Supplier Quotes.
 Following IDOCS and Transactions related to Request for Quote are not considered as the target
architecture (Functionality available in current SAP S/4HANA delivery but not considered as future
technology. Functional equivalent is not available).
 Following IDOCS and Transactions related to Request for Quote are not considered as the target
architecture (Functionality available in current SAP S/4HANA delivery but not considered as future
technology. Functional equivalent is not available).
 It is planned to replace them with cXML messages:
 REQOTE (Basic Idoc type = ORDERS05) is the IDOC for RFQ
 QUOTES (Basic Idoc type = ORDERS05) is the Idoc for Quote

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Line-Balancing and Sequencing

 Sequence planning determines the production sequence of planned orders on assembly

lines operating at a constant rate or takt. It is part of repetitive manufacturing and only
suitable for repetitive manufacturing planned orders.
 SAP recommends to perform sequencing planning for assembly lines with PPDS.
Sequencing in PPDS is superior to sequencing in ERP for the following reasons:
 • PPDS sequencing in the short term horizon works together with PPDS model-mix
planning for the mid-term horizon
 • You can define restrictions like "Minimum distance restrictions between two units with
a certain characteristic" or "At most x units per day with a certain characteristic"
 • PPDS optimizers can compute production sequences that minimize violations of
restrictions
 The classic sequence planning transactions are still available but will be replaced in a
future S/4HANA release by a PPDS based solution (Functionality available in SAP
S/4HANA on-premise edition 1511 delivery but not considered as future technology.
Functional equivalent is available).

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MRP in HANA

 SAP S/4HANA features MRP Live; an MRP run optimized

for SAP HANA. MRP Live reads material receipts and
requirements, calculates shortages, and creates planned
orders and purchase requisitions all in one database
procedure. This minimizes the volume of data that has to
be copied from the database server to the application
server and back, which considerably improves
performance.
 MRP Live is a prerequisite for the future production
planning and detailed scheduling PP/DS solution in SAP
S/4HANA

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Forecast Based Planning

 MRP live does not perform forecast based planning in

HANA but sends the affected materials into the classic
ABAP planning procedure. This results in a performance
loss.
 • Forecast demand and planned independent
requirements are semantically very similar. Planned
independent requirements can be created from forecast
demand
 • The system records all changes of planned independent
requirements which facilitates reporting

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Demand Forecasting

 HANA has a built in library of forecasting algorithms, which

could be utilized for forecasting material demand. A future
demand forecasting solution will probably perform the
forecasting algorithm in HANA utilizing HANA's forecasting
library.

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Batch History

 The functionality Batch History is considered as not the

target architecture within SAP S/4HANA, on-premise
edition 1511(Functionality available in SAP S/4HANA on-
premise edition 1511 delivery but not considered as future
technology. Functional equivalent is available). The
available functional equivalent is global batch traceability
(GBT)

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 Overall Benefit of S4 HANA targeted
• Simplified User Experience:
 FIORI is new way of interacting with system
 “ACTIVE BOARDS” – instead of “DASHBOARDS”, using fiori factsheet apps
 Leaves Approvals
 PR/PO Approvals
 Finance Approvals
• Business Apps:
 Sales Numbers
 Vehicle Production
 Stock Visibility
 Serial Number Quality Status
 Dispatch
 Track your Requisitions
• Smart Business Cockpits:
 MRP Cockpit
 Sales Order Fulfillments
 Pricing-Simulations
• Reduce Debtor & Creditors Days : Overall Process is completed faster due to (a) faster approvals (b) well monitoring of OPIs
& KPIS using HANA-LIVE Analytics and FIORI SMART Apps

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