Escolar Documentos
Profissional Documentos
Cultura Documentos
? SAP AG 2001
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SAP AG
AP010
Preface-1
Level 3
SAP APO
Level 2
SAP APO
AP210
LO050
5 days
PP - Planning and
Execution for Discrete
and Repetitive
Manufacturing
Demand Planning
AP010
AP215
2 days
3 days
Supply
Network Planning
2 days
Integration Master
Data
AP220
5 days
3 days
Production Planning/
Detailed Scheduling
AP230
LO060
5 days
2 days
Global ATP
PP-PI
Process Manufacturing
BC555
2 days
liveCache
Administration
? SAP AG 2001
??The
level 2 course AP010, the first in the series of SAP Advanced Planner and Optimizer courses,
provides an overview of the individual SAP APO components and is a prerequisite for all
of the level 3 SAP APO courses.
??The
level 3 courses build on the knowledge gained during AP010 and broaden your working
knowledge of the individual SAP APO components. The five level 3 courses give detailed
information on the following areas: Demand Planning, Integration, Supply Network Planning,
Production Planning and Detailed Scheduling, and Global Availability Check.
System administrators can also attend course BC555 liveCache Administration, which is listed in the
Basis Administation Training curriculum.
SAP AG
AP010
Preface-2
Course Prerequisites
Prerequisites
? None
Recommended
? General understanding of supply chain concepts
? SAP AG 2001
SAP AG
AP010
Preface-3
Target group
Target group
Duration
? 2 days
? SAP AG 2001
??There may not be enough time in the course to do all of the exercises. The exercises are additional
examples that are done during the course. Participants can also use these examples to refresh or
extend their knowledge after the course.
SAP AG
AP010
Preface-4
Products
Customers
??The
Precision Pump Company was launched in 1971 and is the market leader, selling a large variety
of high-tech standard pumps. In the product catalog are turbomolecular, centrifugal, rotation and
membrane pumps. Its customers come from the electronics industry, semiconductor industries,
chemical technology, pharmaceutical technology and process technology up to and including vehicle
manufacturers, and universities. The company recently became ISO certified and has been listed in
the New York share index Nasdaq 100 since 1999.
??In the rapidly growing business area of turbomolecular pumps in particular, the company has
shown a clear rise in revenue over the past business year: in the semiconductor industries countless
steps, from wafer manufacture, to the final chip, can only be made under high vacuum conditions.
In this area, there has to be ultimate pressure of < 10-10 mbar (i.e. ultrahigh vacuum).
??During the current fiscal year, the company is planning to enter the booming DVD growth market.
DVDs are a form of rewritable optical memory media. They are distinguished from the CD by
their large memory capacity. Coating equipment needed to create these rewritable DVDs also uses
vacuum technology.
??Via intensive "co-engineering" with manufacturers, Precision Pump Company has optimized a
large number of products to match these special requirements.
SAP AG
AP010
Preface-5
2500 DC Rotterdam
3000 New York
3800 Denver
Denver
1000 Hamburg
Hamburg (main plant
plant and
and company
company
headquarters)
2300 Barcelona
Plant
2400 DC Milan
DC
? SAP AG 2001
SAP AG
AP010
Preface-6
BOM P-102
Pump Precision 102
P-102
(FERT, T-F2##)
(1000, 0, _ )
Item 0010
0020
0030
0040
0050
0060
Fly wheel
Shaft
Pressure cover
100-100
102-200
P-100
100-130
(HALB, T-B?##)
(1000, 10, 2 )
100- 300
(HALB, T-B3##)
(1000, 0, _ )
100-400
(HALB, T-B1##)
(1000, 10, 2 )
(HALB, T-B4##)
(1000, 10, 2 )
(T-F1##)
DRW, 000, 00
(ROH, 100-130)
(1000, 10007, 2 )
Casing
Item 0010
Slug
100-110
0020
Flat gasket
0030
Screw
0010
0010
Slug
1
Slug
0010
Document
1
Slug
100-130
100-210
100-310
100-410
(ROH, T-T3##)
(1000, 1000, 2 )
(ROH, T-T0##)
(1000, 1000, 2 )
(ROH, T-T4##)
(1000, 1000, 2 )
(ROH, T-T5##)
(1000, 1000, 2 )
1002 M ller
(5300000790)
1003 Gusswerke
(?)
1003 Gusswerke
(?)
1003 Gusswerke
(?)
1006 Blacks
(5300000720)
1022 Max
Wholesale
1011 Kugelmeier
(5300001106)
1011 Kugelmeier
(5300001107)
1011 Kugelmeier
(5300001083)
1011 Kugelmeier
(5300000721)
100-120
(ROH, T-T1##)
(1000, 1000, 2 )
(ROH, T-T2##)
(1000, 1000, 2 )
1003 Gusswerke
(5300000866)
1003 Gusswerke
(5300000867)
Screw
(5300001081)
SNP relevant
Only R/3
? SAP AG 2001
??This
slide shows the R/3 BOM for the product P-102 (T-F2##). This BOM was transferred via CIF
as a PP/DS BOM with the screw 100-130 only being planned in R/3. An SNP BOM was then
generated from the PP/DS BOM. During automatic conversion it was defined that only the products
P-102, 100-100, 100-110, 100-300 and 100-310 are SNP relevant.
??Legend:
SAP AG
AP010
Preface-7
APO Overview
Contents:
? Introduction to Supply Chain
? Overview of APO Planning Applications
? SAP AG 2001
SAP AG
AP010
1-1
Course Goals
? SAP AG 2001
SAP AG
AP010
1-2
Unit Objectives
? SAP AG 2001
SAP AG
AP010
1-3
Course Content
Preface
Unit 1
Course Overview
Unit 6
Unit 2
Integration and
Technology
Production Planning /
Detailed Scheduling
Unit 7
Modelling and
Evaluation in APO
Transportation Planning /
Vehicle Scheduling
Unit 8
Global
Available-to-Promise
Unit 9
Unit 10
Conclusion
Unit 3
Unit 4
Demand Planning
Unit 5
Supply Network
Planning
? SAP AG 2001
SAP AG
AP010
1-4
1
11 Course Overview
22 Integration and Technology
3 Modelling and Evaluation in APO
4 Demand Planning
Supply Network
55 Planning
Production Planning/Detailed
6 Scheduling
Transportation
7 Planning/Vehicle Scheduling
88 Global Available-to-Promise
99 Conclusion
? SAP AG 2001
SAP AG
AP010
1-5
Business Scenario
? SAP AG 2001
SAP AG
AP010
1-6
Information flow
Transfer
Supplier
Transfer
Manufacturer
Transfer
Distribution
Transfer
Retail Outlet
Consumer
CASH FLOW
? SAP AG 2001
??Supply
Chain Management includes the management of materials, information, and financial flows
in a network consisting of suppliers, manufacturers, distributors, and customers. The co-ordination
and integration of these flows within and across companies are critical in effective Supply Chain
Management.
??Why
SAP AG
AP010
1-7
Shortened Cycle
Times
Improved
customer service
Flexible reaction
to service
requests
? SAP AG 2001
SAP AG
AP010
1-8
Customers
Pull
Delivery time
? Bullwhip Effect
Lead time
Plants
Push
DCs
Suppliers
? SAP AG 2001
Supply Chain
??The
key supply chain problem is that the delivery time of products to the customer must be
considerably shorter than the production or the lead time. In order to realize this and to guarantee a
high delivery service, inventory and safety stock must be built up at component or finished product
level in plants or distribution centers (DC).
??You
use postponement strategies to define how far the sales order links with the supply chain; in
other words, where the decoupling of make-to-stock production (push strategies) (MTS), and maketo-order production (pull strategies) (MTO), takes place.
??The
bullwhip effect refers to an increase in variability of a (constant) demand pattern - due to large
fluctuations at the manufacturer or the supplier - as we move along the supply chain, triggered by lot
size creation.
??Implementing an APS system (Advanced Planning System) does not in itself solve supply chain
problems. It is also important that company bosses are prepared to consider making organizational
changes to their companies, or at least looking into the possible benefits.
SAP AG
AP010
1-9
Aggregation
Level
Demand Planning for
anonymous demands
MRP II
Master Production
Scheduling (MPS)
APO
Lot Sizing
Capacity Requirements
Planning
Scheduling
Planning
Horizon
Result:
Feasible plans
? SAP AG 2001
??APS
(Advanced Planning Systems) is the description of the new generation of planning systems with
simultaneous quantities and capacity requirements planning.
??The
??The sequential planning process lasts too long; exceptions cannot be replanned quickly
??Constraints and capacities are planned infinitely and require the plan to be postprocessed
??Individual planning of separate products is not given for lot sizes and manufacture of co-products
??Static safety and buffer times lead to long lead times and unrealistic capacity loads
SAP AG
AP010
1-1 0
R/3
Core Business Application Level
Finance
Integration
Strategic
Enterprise
Management
(SEM)
Logistics
Database
structure
Interfaces
Development
tools
Communication
Materials
Management
Client-Server
Sales
Production
Planning
?? ?
Flexibility
liveCache
HR
Core level
Non-R/3
Systems
Supply
Chain
Solutions
(APO)
Electronic
Commerce
B2B
Scalability
Business
Information
Warehouse
(BW)
Open Systems
? SAP AG 2001
SAP AG
AP010
1-1 1
Advantages of APO
? SAP AG 2001
SAP AG
AP010
1-1 2
External procurement
for example,
LES, MM
? SAP AG 2001
Production
planning
PP/DS SNP
SNP
Production
for example,
PP
Outbound
delivery
for example, LES,
MM, SD
Delivery planning
ATP, TP/VS
Customer
planning)
Partner
Partner
Supplier
External
procurement at
customer
Execution
??
In Supply Chain Management, there is a planning level and an execution level. Within the
planning level APS systems are used (APS = Advanced Planning Systems), and at the execution
level, ERP systems (ERP = Enterprise Resource Planning) are used. The planning level is divided
into different planning levels depending on the meaning of the decisions made: strategic, tactical and
operational. The criterion for deciding what belongs to which planning level is not primarily the
planning horizon but rather the scope of the planning. Each hierarchically superior level determines
the ranges of the planning levels below it.
??
Strategic level (strategy planning): Here, comparatively unstructured and simple planning tools
such as portfolio techniques (product life cycle analysis, Boston Consulting Group portfolios,
McKinsey portfolios, for example) are used to make decisions about the direction of the company
(such as product diversification strategies, quality strategies, cost leadership).
??
Tactical level (strategy realization and infrastructure planning): decisions about direction are
realized at this level when the company is restructured based on the strategies. Tactical planning is
decisive for operational planning and execution because they form the planning environment in the
company (plann ing personnel, IT systems for planning, their selection, implementation and setting
parameters, planning processes) as well as the part of the company that physically executes (such as
factory planning, personnel planning, transportation planning, logistically-relevant IT system for
execution). This links the operational planning level and the execution level.
...
SAP AG
AP010
1-1 3
...
??
Operational level (operational aggregated and detailed planning): Structured, recurring planning
based on tactical realization decisions such as strategies for settling sales orders and pre-planning,
which are not questioned again in operational planning. Operational planning can also be long-term
to bridge bottlenecks that will occur in the future, such as early planning for seasonal requirements or
planning runs to determine components with longer replenishment times. Planning for further
planning in the future is usually done aggregated objectively or based on time since planning data is
uncertain. Aggregated planning also serves to redirect tactical planning if necessary, for example,
additional shifts, additional capacity, outline agreements with suppliers. Detailed planning attempts
to optimally use the logistic system within the limits set by tactical and aggregated planning and
based on the most current data.
??
Execution level: Along with the development of the product (production, stock transfer, sorting,
receipt, delivery), administrative activities are also performed at the execution level. These activities
are supported by execution systems, for example, when papers for production (production orders) are
printed.
SAP AG
AP010
1-1 4
Monitor
Tactical
Network Design
Supply Network
Planning
Agg. Planning
Sales
Detailed Planning
Purchasing
Production
Planning
&
Detailed
Scheduling
Distribution
Planning
&
Deployment
Transportation
Planning
&
Planning
Vehicle
Scheduling
Scheduling
Global Available-to-Promise
BUY
MAKE
STORE
MOVE
SELL
? SAP AG 2001
??Supply
Chain Cockpit: A graphical tool for evaluating and controlling the supply chain.
??Demand Planning (DP): aggregated and detailed demand planning with a variety of forecasting
??Production
??Transportation
??Global
SAP AG
AP010
1-1 5
Network Design
? SAP AG 2001
??Network Design
is a component used specifically for strategic planning. You can use this tool to
make assignment decisions (relationships between individual locations and assignment of products to
locations), as well as to make additional decisions regarding locations (location determination and
location selection), taking account of demand and cost structures. Network Design can also be
implemented for regular evaluation of the existing supply chain in order to discover any weaknesses
and take any necessary measures.
??There
are four methods available in Network Design for planning the supply chain network. These
methods optimize either geographical distances or costs, in each case taking the demand structures
into account.
SAP AG
AP010
1-1 6
APO
Flexible Planning
Demand
Planned ind.reqmts
management
Sales &
Sales order
Distribution (SD)
Planned ind.reqmts
Consumption
Sales order
Supply Network Planning (SNP)
Prod. Plng & Det. Schedlng (PP/DS)
Planned order
Conversion
Production order
Purchasing
(MM)
Planned order
Production order
Purchase requisition
Purchase order
Purchase requisition
Purchase order
Stock transport
requisition
Deploy
-ment
??In APO
Demand Planning (DP) you base forecasts on aggregated historical data from the R/3 or
Business Information Warehouse (BW) system (such as sales quantities from past sales orders). You
use the "Administrator Workbench" in APO to upload aggregated historical data from the R/3 or BW
system. In APO Demand Planning you generate planned independent requirements (release
forecast to APO Demand Planning) that are used for make-to-stock planning.
If you are not yet using APO Demand Planning, it is also possible to generate planned independent
requirements in the R/3 system (either manually in R/3 Demand Management, or automatically in
R/3 Demand Management using data from R/3 Flexible Planning, Sales and Operation Planning (R/3
SOP), or Sales and Profit Planning (R/3 CO/PA). If you do this, the planned independent
requirements are transferred to APO through the R/3 APO interface (CIF).
??Sales
orders and planned independent requirements form the starting point for both Supply Network
Planning (SNP) and Production Planning / Detailed Scheduling (PP/DS) in APO. Existing storage
location stock is also included in the planning. Here, sales orders are entered in the R/3 system (sales
module) but the availability check (or ATP check - Available to Promise) is done in APO. Sales
orders then consume the planned independent requirements in APO depending on the APO
"requirements strategy".
??In
Supply Network Planning (SNP) you plan for the short- or mid-term horizon for the entire
supply chain: you generate stock transport requisitions (for planning and stock transfer) between
distribution centers and plants, and can also generate planned orders (for in-house production
planning) and purchase requisitions (for external procurement planning) directly in the production
plant for the longer term horizon. In Production Planning and Detailed Scheduling however, you
usually generate planned orders and purchase requisitions directly in the production plant for the
short term horizon.
...
SAP AG
AP010
1-1 7
SAP AG
AP010
1-1 8
...
??Transaction
data generated in APO (such as planned orders) is transferred to the R/3 system
through the R/3 APO interface (CIF: Core Interface). The APO demand plan is only transferred from
APO to the R/3 system as planned independent requirements through mass processing from within
APO Demand Planning (however, you only need to do this if Production Planning is being done in
the R/3 system rather than in APO). It is however possible to automatically transfer planned
independent requirements that have been maintained in R/3, to APO through the CIF.
??As
soon as planned orders and purchase requisitions get closer to the today-line, the stock planner or
buyer can collectively convert planned orders into production orders and purchase requisitions into
purchase orders. You use the APO Deployment /TLB (Transport Load Builder) to convert stock
transport requ isitions into stock transport orders.
??You
SAP AG
AP010
1-1 9
Demand Planning
Supply Network
Planning
Production
Planning
? SAP AG 2001
SAP AG
AP010
1-2 0
? Cross-company Demand
Planning (internet)
? Consistent, detailed and
consolidated plans
? Statistical and causal
forecasting techniques
Retail outlet
? Lifecycle planning
? Promotion planning
Suppliers
Production
units
Distribution
centers
? SAP AG 2001
??Demand
Planning is a complex, powerful, and flexible tool that supports your company's demand
planning process. User-specific planning layouts and interactive planning books not only allow you
to include different departments, you can also use them to include other companies in the forecast
creation process. With APO Demand Planning you can use statistical forecasting methods and
advanced macro techniques to do the following: - Create forecasts from sales history, based on many
different causal factors; - Test predefined, and user-defined forecast models, and forecast results; And use a consensus-based approach to consolidate the demand plans of different departments. You
can use forecast overrides and promotions to add marketing intelligence and management
adjustments. The seamless integration with APO Supply Network Planning supports an efficient
Sales and Operations Planning (S&OP) process.
SAP AG
AP010
1-2 1
Location
Product hierarchy
Future demand
forecast
Sold-to party
Sales organization
Region
? Incoming
order
value
?
Quantities
Values
? Invoice
?
Quantities
Values
? Statistical
BW
forecasting
? Collaborative
R/3
Excel
Non-SAP system
forecasting
? Promotions
? SAP AG 2001
??The
APO DP library of statistical forecasting and advanced macro techniques allows you to create
forecasts based on sales history as well as any number of causal factors, and use a consensus -based
approach to consolidate the results.
??Marketing
intelligence and management adjustments can be added by using forecast overrides and
promotions.
??Aggregated
actual data can be extracted from the R/3 system in exactly the same way as it can be
imported from BW, Excel, and legacy systems.
SAP AG
AP010
1-2 2
Collaboration
with Suppliers
Supplier
Collaboration
with Customers
Customer
Manufacturer
?
?
?
?
Product requirements
Production dates
Procurement
Delivery dates
?
?
?
?
Demand plans
Promotions
Stock levels
Delivery dates
SAP AG
AP010
1-2 3
Screen Title
APO - Product
ID
Supply Network
Planning
Object
Text
Object 1
Text 1
Des
Gra
ign
ph
Grid Title
Object 2
Text 2
Key Figure 1
Object 3
Text 3
Key Figure 2
Object 4
Text 4
Key Figure 3
Tota
l
APO - Product
W 24
W 25
W 24
W 25
Capacity
Leveling
Tota
l
W 26
W 27
W 28
W 26
W 27
W 28
Key Figure 4
Selection Profile
Key Figure 5
User
Selection ID
Grid 2 Title
Key Figure 1
Key Figure 2
Key Figure 3
Key Figure 4
Key Figure 5
Planning Book
? SAP AG 2001
??The
SNP BOM contains critical products that are produced on bottleneck resources and products
with a long replenishment lead time.
??SNP
ensures that the right quantity is available on the right day without critical resources being
overloaded. The smallest unit used for scheduling is days.
SAP AG
AP010
1-2 4
Demand Plan
Supplier
Plant
DC
Customer
??The role
SAP AG
AP010
1-2 5
Sales orders
Forecasts
Sales orders
planned orders
? Purchase
Forecasts
planned orders
? Purchase requisitions
requisitions
? Stock transfers
? Stock transfers
? PP/DS
? SNP
? Finite,
? Cross-plant
finite planning
? Distribution
and procurement
? Sequences
? Continuous
? Quantity
and order-related
? Pegging
? SAP AG 2001
? No
Production
horizon
and bucket-oriented
pegging
Time
??SNP
??Pegging
is the link between receipts and issues along the supply chain. When an order is shifted, all
dependent orders can be adjusted automatically.
SAP AG
AP010
1-2 6
Production Planning/
Detailed Scheduling
? SAP AG 2001
??Where
Supply Network Planning (SNP) is usually used for rough mid- to long-term planning over
the entire supply chain (in particular when there are several plants and distribution centers),
Production Planning and Detailed Scheduling (PP/DS) is usually used for to-the-minute shortterm planning in a production plant.
??In Supply Network Planning (SNP) demands ar e aggregated for a specified bucket ("day" for
example). It is irrelevant here whether a requirement falls within an early or a late shift, as
requirements are only planned roughly here - it does not include break times either. The sequence
of orders is not an SNP time consideration. Cross-plant planning, and mid - to long-term planning
in the production plant however do all play an important role in Supply Network Planning.
??Production Planning and Detailed Scheduling however, does schedule orders to-the-minute
(meaning that shifts and breaks are included here), and does include order sequences (sequencing
and optimization of sequences). In the short-term horizon, these functions are highly important for
the production plant.
??As
soon as a requirement (such as a sales order or planned independent requirement) falls within a
specific horizon, it is no longer planned in the SNP planning run, but instead in the production
planning run of PP/DS.
SAP AG
AP010
1-2 7
Customer
Resource 2
Resource 1
Resource 3
30
Resource 3
20
Resource 2
Resource 1
10
Time
? SAP AG 2001
(PP/DS) is used mainly for short-term to-theminute planning (both for in-house production and external procurement) in the production plant.
PP/DS schedules and plans all operations of an order that are relevant for planning at the different
resources. PP/DS has the following functions:
??It generates planned orders (to plan in-house production), and purchase requisitions or scheduling
agreement schedule lines (to plan external procurement) in the event of product shortage. It uses
simultaneous material and capacity requirements planning to do this: You can define
resources as finite resources (planning-critical resources) in the resource master. Order
operations are only created at these resources if there is sufficient capacity for the order quantity
on the corresponding date. When there is no available capacity, the system searches for a date on
which the order operation can be carried out, taking account of the capacity situation.
??Takes order sequences into account: when new in-house production orders are created, the setup
times in the new order can be determined automatically from the setup status of the resources
(depending on the preceding order).
??It is possible to display the orders in graphic format (in the detailed scheduling planning board),
and to sequence from there. Alternatively you can use the optimizer to execute a sequencing.
??Machine scheduling optimization: during planning, it is possible for orders to be generated that
do not have an optimum order sequence. Therefore, you can change the sequence and resource
assignments of existing orders using the optimization run.
??PP/DS
is a planning tool. Execution functions such as confirmations and goods receipts are
performed in the execution system (for example, R/3). Therefore, the planning results are transferred
to the execution system.
SAP AG
AP010
1-2 8
Deployment
Deployment adjusts the stock transfers for short-term changes
on both the supply and demand side (distribution detailed planning).
? Fair Share
?
Proportional distribution
Proportional target
fulfillment
DC1
Calgary
Winnipeg
Quota arrangements
? Push deployment
Plant Customer
DC2
Chicago
Push horizon
? SAP AG 2001
??The deployment function in SNP determines how and when inventory and planned supplies should
variety of deployment strategies are used depending on the current situation (e.g., fair share, push
deployment, pull-push deployment).
SAP AG
AP010
1-2 9
Transportation Management
APO TP/VS
(Planning)
BW
(Monitoring)
LES
(Execution)
??The
APO system includes the tactical and operational planning area from the SAP Transport
Management solution, which is complemented for transportation execution by the SAP component
from Logistics Execution Systems (LES).
SAP AG
AP010
1-3 0
? Event-driven
? Internet capabilities
? Rules-based ATP:
?
Location substitution
Product substitution
? Product allocations
? High performance (time series)
? SAP AG 2001
??You use
Global ATP (Available To Promise) to check product availability and capacities, to provide
customers with reliable confirmation dates for their sales orders.
ATP checks are triggered from the OLTP system (R/3 system, or non-SAP system) as an event
(event-driven). In the interface with APO you can specify that the ATP check is to be done in APO
and not R/3. If you create a sales order in R/3, for example, the system first checks if there is enough
of the requested product in stock. The system can also check if receipts (for example, production
orders and planned orders) have already been planned by the requested date.
functions:
??Rules-based ATP: When there is no availability, it is possible in AP O to set it so that the system
does an ATP check for the product at another location or else substitutes that product for an
alternative one (location and product substitution).
??Integration with PP/DS : It is also possible to set it so that when a product is not available, the
sales order directly triggers production. If it triggers an order for in-house production, APO creates
a planned order for the required quantity in PP/DS.
??Product allocations: Product allocation allows you to manage the supply of scarce products to
customers, so that each customer only receives an allocated amount.
??Time series: Planned orders and production orders are aggregated and represented in a time series,
which can be used to evaluate the incoming requests from the sales orders. This improves
performance of the ATP check.
SAP AG
AP010
1-3 1
Optimization Solutions
Tab. search
Supply
Network
Design +
Planning
Genetic algorithm
constraint-based
programming
Production Planning/
Detailed Scheduling
Transportation
planning
? SAP AG 2001
??In
APO, the following optimizers are available: optimizer for CTM, optimizer for PP/DS, optimizer
for Network Design, optimizer for Sequence Planning, optimizer for Supply Network Planning,
optimizer for Transportation Planning.
??In
Supply Network Planning, optimization problems are usually of the nature that they can be
solved with an "exact mathematical solution procedure" (which can be solved using linear
equations). For this reason, linear programming is used for optimization in Supply Network
Planning. Linear programming is able to calculate an "exact solution".
??In
Production Planning and Detailed Scheduling (PP/DS) however, there are usually more
complex optimization problems for which no "exact solutions" can be found. Therefore, linear
programming is less suited for PP/DS. Instead, solutions are more able to approximate an "optimum
or exact solution". Approximate optimization procedures are therefore more suited to be used in
PP/DS (genetic algorithm/constraint-based programming). This allows the optimization system
to find a suitable solution faster.
??The
different optimizers can be installed on the same server on which the APO application, the
liveCache, and the database are all installed (but you can also install them on different servers). The
APO application server and the optimizer are linked via a TCP/IP connection. Here you specify
whether the optimizer is to be called on the APO application server or on a different server
(transaction sm59).
SAP AG
AP010
1-3 2
? SAP AG 2001
SAP AG
AP010
1-3 3
Contents:
? liveCache Technology
? Integration of the Online Transaction Processing (OLTP)
System and APO
? Pegging
? SAP AG 2001
SAP AG
AP010
2-1
Unit Objectives
? SAP AG 2001
SAP AG
AP010
2-2
1 Course Overview
2
22 Integration and Technology
3 Modelling and Evaluation in APO
4 Demand Planning
55 Supply Network Planning
Production Planning/Detailed
6 Scheduling
7 Transportation
Planning/Vehicle Scheduling
88 Global Available-to-Promise
99 Conclusion
? SAP AG 2001
SAP AG
AP010
2-3
Business Scenario
? SAP AG 2001
SAP AG
AP010
2-4
OLTP
OLTP (R/3)
(R/3)
APO
LIS, CO-PA
HR, FI
Planned Indep.
Requirements
Demand Planning
Customer
orders
Production
Scheduling
Inventory
management
Transportation
processing
Information
Warehouse
Warehouse
(SAP BW)
Historical
data
PP / DS
Global
ATP
Supply
Network
Planning
Deployment
Key
Performance
Key figures
(KPIs)
Transportation Planning
? SAP AG 2001
??Aggregated
??You
release the demand plan to Production Planning, which creates planned independent
requirements for Supply Network Planning (SNP), and PP/DS. You can also transfer the demand
plan to the operating system (OLTP) as planned independent requirements.
??The
seamless integration with Supply Network Planning (SNP), and PP/DS supports an efficient
S&OP process.
SAP AG
AP010
2-5
What is liveCache ?
? Main objective = higher performance:
?
Application
Application
> 1 ms
< 10 s
Data Storage
Data Storage
liveCache
live
Cache
? SAP AG 2001
??Access
to data in the liveCache is approximately 100 times faster than it is in a database (10
microseconds as opposed to one millisecond).
??Display
of complex data structures (nets, trees). The typical liveCache data structure is NOT a
relational data table.
??Easy
??Simultaneous
??Applications
??Further
??"Shared data" for application and the application server (independent of the R/3 OLTP database).
??Higher performanc e (performance-critical routines run the stored operations and problem-specific
data modeling is therefore supported in the same address space as it is in data management. This is
more efficient than relational data modeling).
??Scalability via a number of processors.
??Scalability of the liveCache, because of an interlaced architecture.
?? Higher
data security in a simple C program that saves all data. In case of a program termination
(downtime), data will not be lost.
SAP AG
AP010
2-6
liveCache Technology
Application Server
ABAP-Application Program
exec sql.
Execute procedure "Schedule_order"
(OUT
: var1,
IN
: table1,
IN
: var2)
endexec.
liveCache
? SAP AG 2001
??A liveCache
??During
the first liveCache upload (bring up), mass data (master data and transaction data) from the
connected R/3 and legacy system(s) is either sent to the APO System, reduced (filter) or transformed
into an APO presentation. Some of the data is then also sent to the liveCache.
??Changes from an OLTP are transmitted into APO in real-time and therefore into
liveCache, if the
OLTP system is an R/3 System. In case of non-R/3 Systems there is only one periodic upload of the
changes.
??The
APO server presents changes to be sent back from APO or liveCache into an OLTP system, in a
special data structure (black board). From here, the OLTP system collects the relevant changes in
regular intervals.
SAP AG
AP010
2-7
BBP
CRM
BW
SEM
R/3
Plug-in
R/3
CIF
APO
??An
R/3 interface is marked with an R/3 Plug-in to make it possible to integrate a mySAP.com
component (for example, APO or BW) with one or several R/3 Systems. With R/3 Plug-ins, several
mySAP.com components can be inserted at the same time. Most Plug-ins concern add-ons (R/3
standard software enhancements with additional functions).
??The
data transfer between R/3 and APO Systems is defined and controlled using the APO Core
Interface (CIF). The CIF is the central interface for connecting APO to the existing R/3 System
environment.
components with transaction and master data. In this way, APO CIF does not
only provide the SAP APO System with initial data records (initial supply), it also guarantees a stepby-step supply with all the relevant data changes. Only the object data relevant for the individual
planning and optimization process in APO is transferred from the complex data records into R/3. The
integration between R/3 and APO is possible as of R/3 release 3.1I (for the PM/SM area and
production process models, integration is possible as of 4.5B).
SAP AG
AP010
2-8
APO
Company
A
Plant
1
APO
Company
B
Plant
2
liveCache
Plant
Plant
3
Company
C
? SAP AG 2001
??A
??Different
SAP AG
AP010
2-9
SAP R/3
NonNonR/3
R/3System
System
LO
SD
HR
BAPI
CIF
BAPI
(Core Interface)
BAPIs
SAP
SAPAPO
APO BAPI
? SAP AG 2001
??The
APO Core Interface (CIF) is responsible for the data exchange between APO and R/3 Systems.
The APO Core Interface is a real-time interface, linking APO with one or several R/3 Systems.
??Only
the data objects needed in the data structures in APO for the different planning and
optimization processes are transferred from the complex dataset of the R/3 into APO.
guarantees both the initial data transfer (initial transfer) and also the transfer
of data changes within APO.
??The outbound delivery from APO CIF takes place as an R/3 Plug-in.
??Technical
SAP AG
AP010
2-1 0
R/3
Sales order
Planned order
Production order
Order
...
Plant, Customer,...
Material master
Capacity
Routing and
bill of material
APO
CIF
Real-time
CIF
Order
live
live
Cache
Cache
Production
Procurement
Replenishment
Location
Product
Resource
Production
process model
? SAP AG 2001
??The
planning in APO is based on its own master data that is usually transferred automatically from a
R/3 System, but can also be created manually.
??The
transfer of master data from the R/3 is displayed in the corresponding master data in APO. Only
the master data relevant for planning in APO is transferred (firstly in the form of an initial transfer,
and then later as transfers of data changes).
??The
R/3 remains the execution system for the master data. Only the settings which cannot be
transferred from the R/3 are maintained directly in APO.
??The
transaction data relevant for planning, such as warehouse stock and sales or production orders is
also transferred from the R/3 into APO via the CIF interface. And vice versa, the results of the
planning in APO are returned to the R/3 via CIF and executed there. This integration of transaction
data takes place in real-time.
SAP AG
AP010
2-1 1
R/3
APO
Plant
Location
Customer
Product
Vendor
Resource
Material master
Capacity
Production
process model
Routing and
bill of material
Incremental data
transfer
? SAP AG 2001
??The
APO Core Interface concerns a real-time interface. Only the data objects needed in the data
structures reconciled in the planning in APO for the particular planning and optimization processes
are transferred from the complex dataset in R/3 into APO.
??Both
the initial data transfer (initial transfer) and the transfer of data changes within APO take place
via the APO Core Interface.
??The
master data objects in APO are not identical with those in R/3. For the master data transfer it is
in fact the relevant R/3 master data that is mapped onto the corresponding planning master data in
APO.
??The R/3 System remains the dominant system for the master data. Only specific APO master data
SAP AG
AP010
2-1 2
APO
R/3
R/3 transaction data
Orders
Initial data
transfer
Purchase requisitions
Sales orders
Planned orders
Planned ind. reqmts
Reservations
Supplies
...
Change
transfer
Realtime
? SAP AG 2001
??The
initial data transfer of transaction data takes place first, via the APO Core Interface. The change
transfer between R/3 and APO usually automatically follows for transaction data objects that belong
to an active integration model. New transaction data or changes to existing transaction data is
automatically transferred. (For transaction data of the APO component SNP, you can define in
Customizing whether a real-time or periodic publication is to be performed.)
??The
transaction data objects in APO are not identical to those in R/3. All transaction data in R/3 is
transferred to APO as orders that can be distinguished by ATP category.
??In
the standard system, planned independent requirements can only be transferred from the R/3 into
APO. The retransfer of the planned independent requir ements that you may require if you only
perform Demand Planning in APO, must be triggered from Demand Planning in APO with a specific
transaction.
??For
planned orders and purchase requisitions, you can specify in APO that they are only transferred
from APO to the R/3 System if the conversion indicator has been set.
SAP AG
AP010
2-1 3
Name
Target system
Sales orders
Production orders
Storage location stock
...
? SAP AG 2001
??You
define the integration model that controls the transfer of master and transaction data in the R/3
System. You can find the menu option Core Interface Advanced Planner and Optimizer (the CIF
menu) under Logistics -> Central Functions -> Supply Chain Planning Interface.
??The
integration model distinguishes between master data and transaction data. We recommend
selecting these two types of data in separate integration models and then also transferring them
separately.
??In
the integration model, you select the master and transaction data you want to transfer. You specify
the following in the integration model:
??The APO target system for the data transfer
??The data objects you want to transfer
??You can
delete integration models that you no longer need. Note that you must first deactivate these
integration models.
??For
any transaction data that is contained in an active integration model, a continuous real-time
incremental data transfer is performed between the R/3 System and APO.
SAP AG
AP010
2-1 4
BW
extractors
Forecast
DP
Sales order
SD
APO
liveCache
Planned indep.
requirement
CIF
Purchase requisition
Stock transfer
MM
Planned order
Production order
PP
R/3
? SAP AG 2001
??The
historical data from Demand Planning (DP) is transferred into APO with the help of the
extractors from the Business Information Warehouse (BW).
??You
can release the Demand Planning forecast to the liveCache and therefore create planned
independent requirements. Alternatively, you can transfer planned independent requirements from
the execution system.
??The
orders, supplies and planned independent requirements of the execution systems are transferred
via the CIF interface into APO.
??The
planning results of APO, the purchase requisitions, stock transport requisitions, stock transport
orders and planned independent requirements, are also distributed via the CIF interface into the
execution systems. Planned orders can also create direct production orders in the OLTP system.
SAP AG
AP010
2-1 5
APO
OLTP
Planned independent
requirements
Planned orders
Purchase requisitions
Stock transport
requisitions
Planned orders
Production orders
Purchase requisitions
Stock transport
requisitions
Adjustment of
stock transport
requisitions
Deployment
Grouping of
stock transport orders
??This
slide shows the exchange of movement data between APO and the connected OLTP systems.
??You
can transfer the results of Demand Planning as planned independent requirements to the OLTP
systems, similar to the transfer from Flexible Planning or Sales and Operations Planning (R/3) to
demand management.
??You
can transfer the SNP planning results as planned orders, purchase requisitions and stock
transport requisitions to the OLTP system.
??You
can also transfer the PP/DS planning results as planned orders, purchase requisitions and stock
transport requisitions to the OLTP system. If you convert SNP planned orders into PP/DS planned
orders, the planned orders are adjusted in the OLTP system. You can only transfer planned orders as
production orders to the OLTP system from PP/DS.
??Deployment
and the TLB confirm the OLTP stock transport requisitions and can convert them into
stock transport orders or VMI sales orders.
-> Supply Chain Planning -> Supply Network Planning (SNP) -> Basic
Settings -> Configure Transfer to OLTP Systems you can configure how transfer should take place.
SAP AG
AP010
2-1 6
Pegging
50
Output node
50
50
20
30
Input node
Pegging
80
20
assigns receipts to
requirements
propagates the
requirements through
the BOM
is cross-location
Order
? SAP AG 2001
??Pegging
describes the assignment of quotation and requirement. It links each input node from
requirements or rec eipts with output nodes from receipts. The material flow between requirements,
stock transfers, purchase requisitions, planned orders and storage location stock is therefore defined
in the system. Pegging allows the bi-directional planning of components to the end product and of
the end product to the components.
??Dynamic Pegging: The pegging relationship is re-calculated each time, with regard to quantity
and date changes, when a product receipt or issue takes place.
??Static Pegging: All relationships are fixed. Only the user or an external program can change these
relationships.
SAP AG
AP010
2-1 7
Sales order
10
20
10
10
20
40
10
30
40
60
(-10)
50
100
Transfer order
Shortage
30
100
Surplus
20
30
50
30
50
50
50
50
50
50
(+20)
Production order
50
80
30
20
80
50
(+10)
Order
? SAP AG 2001
SAP AG
AP010
2-1 8
Conclusion
? SAP AG 2001
SAP AG
AP010
2-1 9
Contents:
? Models and version in APO
? Supply Chain Cockpit
? Supply Chain Engineer
? Alert Monitor
? Evaluations using the BW explorer
? SAP AG 2001
SAP AG
AP010
3-1
Unit Objectives
? SAP AG 2001
SAP AG
AP010
3-2
1 Course Overview
22 Integration and Technology
Modelling and Evaluation
33 in APO
4 Demand Planning
55 Supply Network Planning
Production Planning/Detailed
6 Scheduling
Transportation
7 Planning/Vehicle Scheduling
88
Global Available-to-Promise
99 Conclusion
? SAP AG 2001
SAP AG
AP010
3-3
Business Scenario
? SAP AG
AG 2001
SAP AG
AP010
3-4
Legacy
R/3
Active1Model
Model
PPMs
Products
Transportation
lanes
Simulation
Models
Locations
Planning Version 1
Planning Version n
? SAP AG 2001
??The
network model represents the supply chain and consists of individual nodes and relationships. In
APO it is possible to create and maintain different versions of a model for simulation purposes.
There is only one active model (000) with an active version. The active planning version is 000.
??All APO planning functions are based on the supply chain model. The model covers the entire
supply chain network. It is modeled in the Supply Chain Engineer and contains details like locations,
resources, products, transportation lanes and production process models (PPMs).
??You also have the option of creating several models, each with different versions for simulation
purposes.
??Master
data like locations, products, resources and plans that are transferred from OLTP systems are
automatically assigned to model 000. You must assign master data that you create in APO explicitly
to the model.
SAP AG
AP010
3-5
Engineer
Cockpit
Alert Monitor
Information
Warning
Error
Ignore
Modeling the
Network
Analysis of the
Planning Situation
Evaluation of the
Exception Messages
? SAP AG 2001
??The
Supply Chain Engineer enables you to maintain the model of your supply chain. You can use
this component to create or change supply chain network models. The network model represents a
supply chain and consists of individual node points and links. A model can have different planning
versions. You also have the option of creating several models, each with different versions for
simulation purposes.
??The
Supply Chain Engineer is a fully integrated APO component used for creating models. The
model is the basis for all APO planning functions. It covers all areas of the network chain, from the
supplier's supplier to the customer's customer. The relevant data objects are imported here from the
source system to APO.
??The
Supply Chain Cockpit allows planners to make an integrated analysis of transactional data in the
supply chain. It also allows data to be broken down into planner-specific subsets, such as by
indvidual region or product line.
??The Alert Monitor gathers messages regarding problems within your plan.
SAP AG
AP010
3-6
Work Areas
? SAP AG 2001
??The
complete supply chain view can be unclear. You can limit th e view to the objects on which you
want to concentrate when you are defining work areas. The work area is used exclusively as a filter
for displaying objects in the Cockpit and Engineer.
??The
pre-defined work area is the basis for the queries which you can use to gain information about
all aspects of your supply chain from the APO system. The transportation lanes in your work area are
defined using the model in which you are working.
??In
SAP AG
AP010
3-7
? Locations
Supplier
Plant
? Transportation lanes
? SAP AG 2001
??In
APO, a location can represent a distribution center, manufacturing plant, supplier location, a
customer, a carrier, transportation zones, MRP areas, for example.
??The
material flow between locations is modeled via transportation lanes. You map your supply chain
via locations and transportation lanes.
??A
transportation zone can be used to group together customers, for example, in the form of a location
hierarchy. The transportation zone is used in the TLB and in transportation planning. Carriers and
stock transfer points are only used in transportation planning. An MRP area is planned in SNP like a
production plant.
??Product
master rec ords, resources and PPMs (production process models) are assigned to the
locations.
??You can map production, storage, transportation and handling capacities via resources.
??DP, SNP and PP/DS PPMs (production process models) are available to allow you to define
BOMs and routings.
SAP AG
AP010
3-8
Work
Work
areas
areas
Overview
Overview map
Planning
Planning
objects
objects
Network
Network map
map
Control
Control panel
panel
? SAP AG 2001
??Use
Application
Application toolbar
toolbar
Alert
monitoring
monitoring
three main business tools available from the Supply Chain Cockpit include:
SAP AG
AP010
3-9
Information Retrieval
Business Information
Warehouse
Key Performance
Indicators
- Service level
- Supply chain costs
Planning Results
- Production
- Demand
- Stock
- Transportation
- Capacity load
Alert Monitor
APO Applications
??Queries
??Key
Products
Resources
Locations
Transportation lanes
Production process model
SAP AG
AP010
3-1 0
? SAP AG 2001
??The
APO key performance indicators (KPIs) express abstract supply chain objectives in financial or
physical units for comparative purposes. Data pertaining to the various planning and execution
processes such as demand planning or product planning is collected, measured, and transformed into
physical or financial information that can be used to compare results and thus measure performance.
??For
example, a KPI could tell you what percentage of your products were damaged during
production. Based on that information, you could set a goal to reduce the percentage of damaged
goods by 5%. After implementing the steps necessary to reach the goal, you would again launch a
KPI query to check your progress.
SAP AG
AP010
3-1 1
? Purchasing
? Order quantities/values
? Days' supply
? Delivery time
? Stock levels
? Service level
? Material consumption
? Vendor evaluation
? Resource load
? Days' supply
? Production
? Service
? Lead times
? Credit memos
? Date variances
? Deliveries
? Scrap
? Billing documents
? Delays
? Returns
? SAP AG 2001
??The
slide shows some of the standard KPIs provided by SAP. In addition, you have the option to
defin e specific KPIs - tailor-made to your company - in the Business Information Warehouse and to
assign them to the Supply Chain Cockpit.
SAP AG
AP010
3-1 2
4. Compare
results of KPIs
3. Measure
performance
using KPIs
2. Execute
? SAP AG 2001
??The
graphic above depicts the three steps to improving supply chain performance using APO KPIs:
KPI function allows you to track and measure your supply chain performance by retrieving
information stored in the Business Information Warehouse (BW) pertaining to your business.
??Performance
??The
use of metrics to measure performance is a complex business process that requires careful
planning, analysis and a thorough knowledge of the supply chain. For more information on
measuring supply chain performance, refer to the SCC1_E.doc, Appendix 1: The SCOR Model.
SAP AG
AP010
3-1 3
Exception Window
for Details
Alert
Alert Notification
??The
role of the Alert Monitor is to inform you of exception cases that occur in your plan. Every
situation that has to be adjusted in planning is an exception.
??In
Supply Network Planning you have the option to display either database or dynamic alerts. The
database alerts show the planning situation as it was at the time of the planning run, while the
dynamic alerts reflect the current planning situation.
??The
Alert Monitor in Supply Network Planning enables you to display and remove alerts for
resources and location products. Typical alerts are: When the resource is too overloaded (over 100%
utilization of capacity), when the resource is not sufficiently load ed (less than 50% utilization),
backlog, shortfall in safety stock, target days' supply excess/shortfall, customer -specific alerts.
??You
retain constant control over your supply chain network because of the alerts you defined and
because you have the option to send these by mail. As planner or manager you will be prepared for
any problems that occur. You will be informed in time so that you can take the necessary
precautions.
SAP AG
AP010
3-1 4
PP/DS
PP/DS
Cockpit
DP
DP
SNP
Problem resolution
Example:
APO
Alert
Repository
Production
Planning /
Detailed
Scheduling
Supply Network
Planning
ATP
Alert Monitor
? SAP AG 2001
??The
Alert Monitor in Supply Network Planning enables you to display and remove alerts for
resources and location products. Typical alerts are: When the resource is too overloaded (over 100%
utilization of capacity), when the resource is not sufficiently loaded (less than 50% utilization),
backlog, shortfall in safety stock, target days' supply excess/shortfall, customer -specific alerts.
??You
retain constant control over your supply chain network because of the alerts you defined and
because you have the option to send these by mail. As planner or manager you will be prepared for
any problems that occur. You will be informed in time so that you can take the necessary
precautions.
??You
can call the Alert Monitor from the Supply Chain Cockpit, from the menu or directly from
interactive planning. Right-click on the alert to go directly to the problem resolution screen.
SAP AG
AP010
3-1 5
Alert Types
Demand
Planning
Supply
Network
Planning
Production
Planning/
Detailed
Scheduling
ATP: Requirements
not covered
ATP
? SAP AG 2001
Business
Information
Warehouse
??APO's
monitoring component comes equipped with a selection of 20 alert types ranging from
product shortage to various capacity overloads. The alert types must be prioritized and assigned to
the various APO applications. For example, some alerts apply only to SNP, but others can be
assigned to DP and PP/DS as well.
??The
Alert Monitor differentiates between alerts in a specific planning version and alerts in general.
For example, capacity overload pertains to a specific planning version while Demand Planning alerts
are general. Both types of alerts, however, are displayed in the Monitor.
??If
you want to show an alert in the SCC, you can assign the alert type to the application. This ensures
that the traffic lights in the monitoring slot in the control panel go on. Lights indicate that at least one
alert of that priority type exists.
??Since
some alert types cannot always be clearly assigned, it can happen that the same alerts may
appear under more than one priority light.
??Each
SAP AG
AP010
3-1 6
Evaluations in APO
Extraction
structure
Planning
area
RemoteCube
liveCache
Business Explorer
DP InfoCube
? SAP AG 2001
??You
??It
is not only the aggregated actual data from the InfoCubes that are evaluated, but also all of the
order and time series objects from the liveCache.
??The
prerequisites for 'liveReporting' orders and time series are as follows: a planning area in APO;
an extraction structure for the planning area; an infosource, and an SAP RemoteCube that reflects the
liveCache data.
SAP AG
AP010
3-1 7
Conclusion
? SAP AG 2001
SAP AG
AP010
3-1 8
Exercises
Unit:
The group number ## that you need for the following exercises is on your monitor.
1-1
000
For model
000
Work area
PUMP
Change to the logical view PUMP and analyze the supply chain. Which distribution
centers supply the plants 1000 and 2300?
1-2
Display the global master data for the product T-F225 and the master data for the
product T-F225 in the distribution center 2400 in the Supply Chain Cockpit.
1-3
SAP AG
AP010
3-1 9
1-4
1-5
Open your user settings profile directly from the Cockpit. Enter the SDP alert
profile PUMP. Save the profile, go back to the Cockpit and refresh the alert
situation. Are alerts displayed? How can you process the alerts?
1-6
SAP AG
Evaluate the aggregated historical data for the product T-F2##. Log on to the APO
system using the Business Information Warehouse (BW) Analyzer and open the
query SALES DATA for the SALES InfoCube.
Find out the extent that Product T-F2##, with Sold-to party 1000, and in Sales
Organization 1000, contributed to sales in the past few months.
AP010
3-2 0
Solutions
Unit:
The group number ## that you need for the following exercises is on your monitor.
1-1
000
For model
000
Work area
PUMP
Change to the logical view PUMP and analyze the supply chain. Which distribution
centers supply the plants 1000 and 2300?
Supply Chain Monitoring ? Supply Chain Cockpit
Enter the input data and select Use.
Select the Fit to objects button on the left above the graphic to adjust the
objects.
Enter the logical view PUMP and select Logical view.
If you want to restrict the area further, you can define the zoom area using the
left mouse button.
The transportation lanes show you that the plants 1000 and 2300 supply the
distribution centers 2400 and 2500.
SAP AG
AP010
3-2 1
1-2
Display the global master data for the product T-F225 and the master data for the
product T-F225 in the distribution center 2400 in the Supply Chain Cockpit.
Choose the Products tab
Right-click on product T-F225 and display the master data for this product:
Display ? Product
Select the location 2400 in the graphic and the product T -F225 in the Products
tab and display the location product by right-clicking on the product: Display ?
Product at location
1-3
1-4
1-5
Open your user settings profile directly from the Cockpit. Enter the SDP alert
profile PUMP. Save the profile, go back to the Cockpit and refresh the alert
situation. Are alerts displayed? How can you process the alerts?
Settings ? User profile
Enter the SDP alert profile PUMP in the Alert Monitor tab.
Save the profile and use the green arrow to go back to the Cockpit.
Press the Refresh alerts button and the exception messages are shown in red.
Double-click here to go directly to the Alert Monitor and right-click to process the
alerts.
SAP AG
AP010
3-2 2
1-6
Evaluate the aggregated historical data for the product T -F2##. Log on to the APO
system using the Business Information Warehouse (BW) Analyzer and open the
query SALES DATA for the SALES InfoCube.
Find out the extent that Product T-F2##, with Sold-to party 1000, and in Sales
Organization 1000, contributed to sales in the past few months.
Call up the BW Analyzer, activate the macros, and press the Open icon in the
Business Explorer. Log on to your APO system.
Expand the SALES PLANNING info area and the SALES infocube. Select the
SALES DATA query and press OK.
You are given an aggregated view of the invoiced sales quantity and invoiced
sales value of the three sales organizations. Right-click on the field next to APO
product to restrict the evaluation for your product T-F2## via Select filter
value.
By right-clicking on sales organization you can drilldown the evaluation
according to sold-to parties by choosing Add Drilldown According to sold-to
parties.
By right-clicking on the SALES key figure, you can drilldown the evaluation
according to months by choosing Filter and drilldown according to
cal.year/month.
SAP AG
AP010
3-2 3
Contents:
? Demand Planning Tasks and Functions
? Integration with the Business Information Warehouse (BW)
? Forecast Toolbox
? Lifecycle Planning
? Promotions
? SAP AG 2001
SAP AG
AP010
4-1
Unit Objectives
? SAP AG 2001
SAP AG
AP010
4-2
1 Course Overview
22 Integration and Technology
3 Modelling and Evaluation in APO
44 Demand Planning
Supply Network
55 Planning
Production Planning/Detailed
6 Scheduling
Transportation
7 Planning/Vehicle Scheduling
88 Global Available-to-Promise
99 Conclusion
? SAP AG 2001
SAP AG
AP010
4-3
Business Scenario
? SAP AG
AG 2001
??Demand
Planning is a complex, powerful, and flexible tool that supports your company's demand
planning process. User-specific planning layouts and interactive planning books not only allow you
to include different departments, you can also use them to include other companies in the forecast
creation process. With APO Demand Planning you can use statistical forecasting methods and
advanced macro techniques to do the following: - Create forecasts from sales history, based on many
different causal factors; - Test predefined, and user-defined forecast models, and forecast results; And use a consensus-based approach to consolidate the demand plans of different departments. You
can use forecast overrides and promotions to add marketing intelligence and management
adjustments. The seamless integration with APO Supply Network Planning supports an efficient
Sales and Operations Planning (S&OP) process.
??Demand
Planning is the application component in the Advanced Planner and Optimizer (APO) that
allows you to forecast market demand for your company's products. The result of APO Demand
Planning is the demand plan.
SAP AG
AP010
4-4
? SAP AG 2001
??The
Business Information Warehouse (BW) infrastructure includes easy to use features for
extracting all the data from execution systems and analyzing it in the SAP BW Business Explorer.
??Macros can be used to perform complex calculations, and to define conditions and exception
messages (alerts). Mails can be sent automatically, and status automatically queried.
??In
the S&OP scenario, the feasible production plan from SNP or PP/DS is compared with the
original demand plan. Deviations are identified automatically and reported to the planner.
??The
following statistical procedures are all available for forecasting; Constant model, Trend model,
Seasonal model, Trend and Seasonal model, Croston method with exponential smoothing, Linear
regression, and Causal models with multilinear regression. External forecasting procedures can also
be linked to this.
??"Like
modeling" refers to the forecasting of new products using historical data from old products.
Life cycle definition is also covered in like modeling.
??You
can make each planning book accessible to customers or suppliers over the internet in order to
be able to exchange data as soon as possible.
SAP AG
AP010
4-5
Company 1
Central
Promotion
Store
Promotion
Regional
D/C
Central
Store
Regional Store
Promotion
D/C
Promotion
Customer
Season
Season
Sales
Sales Force
Force
Price
Price
Price
Price
Weather
Weather
Advertisement
Advertisement
?
Multiple sources of demand plan data such as: internally created forecasts
based on history, forecasts from customers, or point of sale (POS) data
direct from retailers
? SAP AG 2001
??The
SAP AG
AP010
4-6
Demand Planning
Forecast
APO
Data Mart
Reporting
Sales history,
Price, Costs, ...
Business
Information
Warehouse
Forecast
Demand Planning specific data
? Summarized data
Causal factors
Lifecycle patterns
Seasonal patterns
Promotional patterns
? SAP AG 2001
??SAP's
Business Information Warehouse (SAP BW) is contained in the APO scope of supply and is
completely integrated with it.
??If
you are going to execute extensive reporting, it is a good idea to set up an independent BW server,
and only transfer the data that is relevant for planning to the APO system.
??As
data structures in BW and APO are identical, you can also evaluate APO data with the BW
frontend.
SAP AG
AP010
4-7
Location
Product hierarchy
Future demand
forecast
Sold-to party
Sales organization
Region
? Incoming
order
value
?
Quantities
Values
? Invoice
?
Quantities
Values
? Statistical
BW
forecasting
? Collaborative
R/3
Excel
Non-SAP system
forecasting
? Promotions
? SAP AG 2001
??The
APO DP library of statistical forecasting and advanced macro techniques allows you to create
forecasts based on sales history as well as any number of causal factors, and use a consensus -based
approach to consolidate the results.
??Marketing
intelligence and management adjustments can be added by using forecast overrides and
promotions.
??Aggregated
actual data can be extracted from the R/3 system in exactly the same way as it can be
imported from BW, Excel, and legacy systems.
SAP AG
AP010
4-8
Aug.
W32
W33
W34
Sept.
W35
W36
W37
W38
W39
W40
W41
time sequence
Pe
rio
d
Customer
203
124
Regions
Material
Product Groups
? SAP AG 2001
??Planning
??Consistent
planning means that planning data on all planning levels can be consistently held
(automatic aggregation and disaggregation).
SAP AG
AP010
4-9
Selection
APO - Product
ID
Object
Text
Design
Object 1
Object 2
Object 3
Text 1
Text 2
Text 3
Title view
Key figure 1
Key figure 2
Object 4
Text 4
Key figure 3
Key figure 4
Selection profile
User
Selection ID
Total
APO - Location
Graph
Total
Capacity Leveling
W 24
W 25
W 26
W 27
W 28
Key figure 5
Header information
Selected objects
Planning book
Data views
Standard selections
Macros
? SAP AG 2001
??The
APO modules Demand Planning and Supply Network Planning have a standard user interface. It
consists of two significant components: the selection range and the work area.
??The
selection range (Shuffler) is the window, where you choose the InfoObjects to be planned.
??In
the Shuffler, you can save commonly used selections, and load existing selections. To open the
Shuffler, choose the symbol selection window.
??The
selection profile displays all the selection IDs which have been assigned for the planner. The
planner can access commonly used selections quickly using the selection IDs.
??In
the data view area, you choose your planning books, and views. You can define a filter for
available planning books and views.
SAP AG
AP010
4-1 0
? SAP AG 2001
??Macros
perform complex calculations quickly and accurately. The extreme flexibility of the macros
allows the planner to model a planning environment based on individual business tasks.
SAP AG
AP010
4-1 1
Statistical Toolbox
? Univariate Forecasting
?
Moving average
Exponential smoothing
Holt-Winters
? Causal Analysis
?
? Composite forecasting
?
? SAP AG 2001
??The
product portfolio of a company covers a variety of products in different stages of their lifecycle
and with different demand types.
??APO
Demand Planning offers a "toolbox" of proven forecasting methods. The system allows you to
choose the best method for a specific demand type.
??Composite
forecasting extends the idea of pick-the-best; with this technique you combine two or
more methods.
??Croston's
??The
statistical forecasting toolbox provides all the features you require to efficiently create accurate
forecasts, including everything from data analysis via time series models through multiple linear
regression.
SAP AG
AP010
4-1 2
Sales
Like
Lifecycle
Time
? SAP AG 2001
??You
use lifecycle planning and "Like" modeling to forecast the launch (phase-in) and
discontinuation (phase-out) of a product.
??A
product's lifecycle consists of different phases: launch (phase-in), growth, maturity, and
discontinuation (phase-out). This process models launch, growth and discontinuation phases.
??For
all characteristic value combinations, you can use either a "like" profile, a phase-in profile, or a
phase-out profile, or any combination of these.
??If
the phase-out profile period is within the history horizon of the master forecast profile, the system
adjusts history input values, displays the adjusted values in the original history and corrected history
key figures, and writes the adjusted values in the corrected history.
??If
the phase-in profile period is within the future horizon of the specified master forecast profile, the
system adjusts baseline (original) forecasts, and writes the adjusted values in the corrected forecast
key figure.
SAP AG
AP010
4-1 3
Promotion Planning
Forecast simulation
Sales
Total sales:
Profit
Total profit:
Promotion 1
-10%
Price
Promotion patterns
Planner
Planner
95
96
97
98
Quantity
? SAP AG 2001
??Promotions
??In
APO Demand Planning, you can plan promotions or other special events independently of the rest
of your forecast.
??Use
Promotion Planning to record either one-time events, such as the millennium, or repeated events
such as quarterly advertising campaigns. Other examples of promotions are trade fairs, coupons,
free-standing inserts, competitors' activities, market intelligence. Examples of events that also have
an impact on consumer behavior are upward/downward economic trends, and acts of nature, such as
hurricanes, and tornadoes.
??Promotional
uplifts can be defined in units or percentages by common promotion patterns. The effect
of a promotion pattern that occurred in the past can be automatically detected using sales history or
estimated by the planner. A promotion pattern can be archived in a promotion catalog; it can
therefore be reused if a promotion of the same type is repeated. A copy function in the promotion
catalog also supports "like" modeling of "like products," "like regions", and so on. There are several
techniques available to determine the impact of a historical promotion. One suc h technique is
multiple linear regression with or without a trend or seasonality.
SAP AG
AP010
4-1 4
Demand Planning
Production Planning
Planned independent
requirements
Macros
Alerts
SNP
PP/DS
Production quantities
? SAP AG 2001
??Once
the various stakeholders in the forecast have reached a one-number, consensus plan, you
release the demand plan as a planned independent requirement.
demand plan from Demand Planning (DP) via either the demand planner or the SNP
planner.
??This
release causes planned independent requirements to be created in the order liveCache. These
anonymous demands form the basis of SNP, or PP/DS, where BOM explosion, capacity planning,
and sourcing are carried out for the complete supply network.
??After
feasibility of the planned sales quantities in SNP or PP/DS has been checked, the results can be
transferred back to Demand Planning. Macros are used to analyze the differences between the
demand plan and feasible quantities and alerts are generated if large differences occur.
SAP AG
AP010
4-1 5
? SAP AG 2001
SAP AG
AP010
4-1 6
Exercises
Unit:
Demand Planning
1-1
Go to Demand Planning.
Open the selection window and, under Show, select APO PRODUCT. Version
000 is already displayed automatically. In the next row, enter APO - Product once
again, and on the right-hand side enter your product T -F2##. Load the data for the
product into the planning table.
1-2
Perform a univariate forecast and analyze the graphic results. The seasonal pattern
that occurred in the past has been extrapolated into the future. Go back to the
planning table.
1-3
For three months from now enter a manual correction of 100 pumps. Check that the
correction is automatically added to the demand plan. Save your plan.
SAP AG
AP010
4-1 7
1-4
1-5
SAP AG
Release your demand plan to Production Planning. Use the RELEASE variant,
and enter your product T-F2## and the horizon. Which locations have had planned
independent requirements created for them?
Field Name
Input Data
Planning area
SALES
Planning version
000
Key figure
FINFOR
Planning version
000
Category
FA
Horizon
90 days
Product
T -F2##
Make sure that planned independent requirements have been created in the
LiveCache. Go to PP/DS product view for version 000, product T-F2##, and
location 2400.
AP010
4-1 8
Solutions
Unit:
Demand Planning
1-1
Go to Demand Planning.
Open the selection window and, under Show, select APO PRODUCT. Version
000 is already displayed automatically. In the next row, enter APO - Product once
again, and on the right-hand side enter your product T -F2##. Load the data for the
product into the planning table.
Demand Planning ? Planning ? Interactive Demand Planning
The selection window is the second icon in the top left. Open the selection
window and, under Show, select APO PRODUCT. Version 000 is already
displayed automatically. In the next row, enter APO - Product once again, and
on the right-hand side enter your product T-F2##. Select Adopt, and your
selection will be adopted by the selection window.
Double click on your product T-F2##. Entries can now be made for this
selection in the planning table rows.
1-2
Perform a univariate forecast and analyze the graphic results. The seasonal pattern
that occurred in the past has been extrapolated into the future. Go back to the
planning table.
Click on the STAT symbol and the forecast is calculated automatically. Select
the Switch table/graphic button, and the forecast results plus historical data
will be displayed graphically.
To get back to the original table, click on the green back arrow.
1-3
For three months from now enter a manual correction of 100 pumps. Check that the
correction is automatically added to the demand plan. Save your plan.
In the Correction key figure, type in 100.
The total from the Forecast plus Correction key figures is displayed in the
Demand Plan key figure. Save your plan and exit the table.
SAP AG
AP010
4-1 9
1-4
Release your demand plan to Production Planning. Use the RELEASE variant,
and enter your product T-F2## and the horizon. Which locations have had planned
independent requirements created for them?
Demand Planning ? Planning ? Release to Supply Network Planning
Select the Get variant... button and choose the RELEASE variant. Enter your
product T-F2##, and choose Execute.
Field Name
Input Data
Planning area
SALES
Planning version
000
Key figure
FINFOR
Planning version
000
Category
FA
Horizon
90 days
Product
T -F2##
1-5
Make sure that planned independent requirements have been created in the
LiveCache. Go to PP/DS product view for version 000, product T-F2##, and
location 2400.
Production Planning ? Interactive Production Planning ? Product View
Enter version 000, product T-F2##, and location 2400. Continue. Your monthly
planned sales quantities have been transferred here and distributed over days.
SAP AG
AP010
4-2 0
Contents:
? Distribution Network and Process Flow
? Master Data Requirements
? Planning Methods
?
SNP Heuristic
SNP Optimizer
Capable-to-Match
? SAP AG 2001
SAP AG
AP010
5-1
Unit Objectives
? SAP AG 2001
SAP AG
AP010
5-2
1 Course Overview
22 Integration and Technology
3 Modelling and Evaluation in APO
4 Demand Planning
55
Supply Network
Planning
Production Planning/Detailed
6 Scheduling
Transportation
7 Planning/Vehicle Scheduling
88 Global Available-to-Promise
99 Conclusion
? SAP AG 2001
SAP AG
AP010
5-3
Business Scenario
? SAP AG
AG 2001
SAP AG
AP010
5-4
? SAP AG 2001
SAP AG
AP010
5-5
Planning Horizon
Demand Planning (DP)
Deployment
??The
??DP is used for long-term unconstrained planning of the future demand plan
??SNP is used for mid-term planning of feasible cross-plant procurement and production
??PP/DS optimizes production in the plant in the next few weeks according to sequences and setup
times
??Deployment and the TLB (Transport Load Builder) are functions of the SNP module for shortterm replenishment planning.
Deployment and the TLB adjust stock transfers according to short-term changes on the demand or
supply side.
??In Transportation Planning, routes and vehicle utilization are optimized.
SAP AG
AP010
5-6
? SAP AG 2001
SAP AG
AP010
5-7
Production plant
Manufacturer
DC
Customer DC
Supplier plant
Supplier WH
? SAP AG 2001
??SNP
??The
stock and previously-planned receipts for finished products and components of all connected
OLTP systems are known by SNP.
??Various
planning methods can be used to create cross-location, feasible plans for the material flow
along the supply chain, taking account of constraints and penalties. The result is optimal purchasing,
production, and distribution decisions, reduced inventory levels, and improved customer service.
??Possible
constraints are, for example, material availability and unrestricted availability of work
center, storage, transportation and handling capacities.
SAP AG
AP010
5-8
Supplier
Plant
Transportation MRP
zone
area
DC
Customer
Stock transfer
point
Carrier
? SAP AG 2001
??Production,
??A
handling and a storage resource can be associated with a location to represent aggregate handling
and storage capacity.
??The
geographical data is used to position the location on the geographical map of the Supply Chain
Engineer. Predefining it as a part of the location data forces the location to be positioned at a specific
point on the map. If you leave these fields blank, they are filled automatically when you place the
location on the map.
only applies to the location type '1010 customer'. The carrier tab is only
activated when you select the location type '1020 carrier'.
??Input
fields that are not available to other location types are activated for location type '1007 MRP
area'.
??For
each location you can define costs for storage, handling, procurement and production as well as
penalties for non-delivery. Procurement costs are used to select suppliers and production costs for
selecting PPMs. An integrated examination of the costs is carried out during the SNP optimization
run.
SAP AG
AP010
5-9
Transportation Lanes
Transportation lanes control the material flow along
the supply chain
? Procurement
? Transportation method
? Products that can be carried
by a transportation method
? Transportation capacity by
volume, weight, pallets
? Transportation costs per unit,
product and transportation
method
? SAP AG 2001
??A
transportation lane in APO represents a business relationship between the locations that you can
use to transport goods. The relationships and the locations represent the supply chain network. The
direction of the transportation lane from source to target location defines the material flow. These
transportation lanes enable you to:
??Define the product procurement parameters like lot sizes, cost functions, unit costs and lane
priorities
??Define the transportation methods (truck, ship, airplane, etc) for each lane and the related
parameters like transportation costs, distances and times
??Assign product-specific transportation methods
??Assign carriers to the lanes
??You
can query the lane relevant data via the Supply Chain Engineer menu or on the map. For
example, you can display a list of all products that are assigned to a specific lane.
SAP AG
AP010
5-1 0
Resource Categories
Production
Transportation
Storage
Handling
? SAP AG 2001
??You
can model additional bottlenecks in your supply chain using bucket resources.
??You
??Quantity (without time base) - this defines the transportation capacity of a truck or the storage
capacity of a warehouse, for example.
??Rate (quantity with time base) - this defines the consumption or production capacity of a resource,
for example; in other words, the quantity that is consumed or produced on a working day at the
resource.
??You
can use transport bucket resources to model the capacity of transport fleets in order to avoid
overloading them.
??You
can use storage bucket resources to model the capacity of storage locations in order to avoid
overloading them.
??You
can use handling bucket resources to model the capacity of forklifts, conveyor belts or pipelines
in order to avoid overloading them.
SAP AG
AP010
5-1 1
Control costs
Operations:
?
Material staging
Activities:
Pre-assembly
Produce
Product
Final assembly
Tear down
Relationship
Inspection
Queue time
Resources
In / Out
Sequence
Resource consumption
? SAP AG 2001
??The
detailed information required for producing a product is specified in the plan. Each plan includes
one or more operations. Each operation includes one or more activities, the components consumed
by the activity, the resources used and their sequence within the operation.
??The plans used for Supply Network Planning (SNP) are usually rougher than those used for
??Activity
??Consumption
??Resources:
that determine the location, lot size, and time inter val for which the plan is valid are assigned
to the plan.
??A
consistency check can be performed manually but is always executed when saving the PPM. If
there are inconsistencies, the PPM cannot be activated.
SAP AG
AP010
5-1 2
Release demand
plan
TLB run
Deployment
run
Release constraintbased SNP plan
to DP
Check plan/
solve problems
Finalize SNP plan
(available to PP / DS)
? SAP AG 2001
??Planned
independent requirements are generat ed for SNP or PP/DS when the demand plan is
released from Demand Planning. This step can either be carried out using the demand planner or the
SNP planner.
??Performing
the SNP run using the SNP Heuristic, SNP optimization, or Capable-to-Match (CTM)
results in a mid-term production and distribution plan.
??After
the SNP run, check the exception messages (alerts) and resolve any problems that occur.
??The
final SNP plan consists of purchase requisitions, stock transport requisitions and SNP planned
orders. You can automatically convert the SNP planned orders into PP/DS planned orders in the
production horizon. Production Planning and Detailed Scheduling (PP/DS) then starts with these
PP/DS planned orders to remove detailed constraints and bottlenecks and to create a feasible
production plan.
??The
final SNP plan can be released back to DP for comparison of the unconstrained demand plan
with the feasible SNP plan. If the differences between these two plans are too great, you can use a
macro to trigger alerts so that the demand planner plans his forecasts again.
??After
production planning has been completed, the deployment run confirms the stock transport
requisitions based on current supplies and demands.
??The
TLB run groups the stock transport requisitions resulting from the deployment run into stock
transport orders.
??You
can build stock transport orders manually for stock transport requisitions that could not be taken
into account during the TLB run due to specified threshold values.
SAP AG
AP010
5-1 3
Heuristic
Capable-to-Match (CTM)
Optimization
Propagation
Heuristic
Optimization
? SAP AG 2001
??The
??Supply Network Planning creates feasible mid-term procurement, production and distribution
plans.
??Deployment distributes stock and available receipts to distribution centers and vendor-managed
inventory (VMI) customers.
??Transport Load Builder converts the stock transport requisitions used by deployment into stock
transport orders, taking account of transportation capabilities.
SAP AG
AP010
5-1 4
Heuristic Scenario
2. Demand
no stock
4. Valid transportation
lanes, quota
arrangements,
priorities
1. Demand
no stock
3. Explosion of plan
Creation and scheduling of
receipts
? SAP AG 2001
?? The
??There is a demand in the customer location. The net requirements calculation does not find any
stock. The product is procured externally. The system analyzes the possible transportation lanes.
??There is also no stock in the distribution center so the Heuristic checks the possible transportation
lanes in the plant.
??There is no stock in the plant, so the SNP plan is exploded and a planned order is created for the
finished product and dependent demands for the components.
??Procurement for the components then occurs via the possible transportation lanes and quota
arrangements or priorities.
SAP AG
AP010
5-1 5
Capacity Leveling
BACKWARD
100 %
1. Day
2. Day
3. Day
4. Day
5. Day
? SAP AG 2001
??The
??Backward shift of capacity load to satisfy demand with high priorities without due date violations.
However, rescheduling does not create any orders in the production horizon. Forward shift of
capacity load related to demand with lower priorities and minimization of due date violations
based on demand priorities.
??A combination of backward and forward shift of capacity load.
??If
you choose a time-based capacity leveling option, you can select various priority rules:
??If you do not select a priority rule, the priority is determined by the system and is completely
random.
??If you choose Time-Based Capacity Leveling by decreasing order quantity, the system first adjusts
the largest order, then the second largest, and so on. If you choose Time-Based Capacity Leveling
by increasing order quantity, the system adjusts the smallest order first, then the second smallest,
and so on.
??If you choose Time-Based Capacity Leveling by decreasing stock range of coverage, the system
first adjusts the order with the largest stock range of coverage, then the one with the second largest
range, and so on. If you choose Time-Based Capacity Leveling by increasing stock range of
coverage, the system adjusts the order with the smallest range of coverage first, then the one with
the second smallest range, and so on.
??If you choose Time-Based Capacity Leveling by decreasing product priority, the system first
adjusts the order with the highest priority, then the one with the second highest priority, and so on.
If you choose Time-Based Capacity Leveling by increasing product priority, the system adjusts the
order with the lowest priority first, then the one with the second lowest, and so on. The product
priority is maintained in the product location master record on the SNP2 tab.
SAP AG
AP010
5-1 6
CTM Scenario
4. Strategy: Search for
surplus stock
Result: Stock
5. Stock transfer
created
1. Demand with
highest priority,
no stock
2. Transp. lane
highest priority
??This
slide shows the determination of feasible receipts for the demand with highest priority. CTM
gradually checks the feasible receipts, whereby you can define the sequence of checks via rules.
CTM takes the first feasible solution.
??CTM
considers:
is order -based planning that uses pegging methods to trace orders back to the individual
requirement. In Supply Network Planning no order-based planning takes place; rather, quantity
planning takes place. After the optimization run (or after the heuristic run), no information relating to
connections between particular planned production orders and original sales orders can be
determined.
SAP AG
AP010
5-1 7
Demand Prioritization
Priority
Order
Date
Customer
KAUF
1.3. 2001
Baker
P-102
KAUF
1.4. 2001
Baker
P-102
forecast
1.2. 2001
DC1
P-102
Prioritized
Demands
Product priority
Order type
Due date
Demands
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
? Demand selection
?
Product
? SAP AG 2001
??CTM
prioritizes current demands based on order category (for example, sales order (KAUF) and
demand planning forecasts), due date and the defined priorities.
??The
sequence of the priority criteria is of great importance for processing demands in the CTM run.
Note : If no priorities are set, prioritization occurs on a first come, first-served basis by due date.
??You
??Below
is a list of possible prioritization criteria: Maximum number of partial deliveries allowed per
item, stock / receipt / demand / forecast categories, confirmed quantity, ATP, BOP: confirmation
share, CTM quantity, order / MRP element number, order / MRP element item, date on which the
record was added, delivery group (items are delivered together), location, ATP, BOP: delivery date,
delivery priority, location, location product number priority, product priority, material staging date,
item type sales document, ATP, BOP: user exit priority, sales document type, requested quantity.
??The
??Define
your demand selection in the CTM profile. (Multilevel Supply & Demand Matching >
Planning > Planning CTM > Demands tab) or (Multilevel Supply & Demand Matching >
Environment > Current Settings > Demand Prioritization > Sort Profile)
SAP AG
AP010
5-1 8
CTM Results
Categorized
Supplies
Capable-to-Match
Prioritized
Demands
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
? SAP AG 2001
??The
CTM planning run is powered by the CTM engine, which matches the prioritized demands to
the available stock and receipts. Then it matches receipts and demands, taking account of production
capacities and transportation capabilities.
??Performing
the CTM planning run in the SNP environment generates a mid-term production and
distribution plan.
??CTM
complements SNP's multi-site supply chain planning strategies. Its purpose is to perform a
quick check of production capacities and transportation capabilities based on a preprocessed set of
categorized supplies and prioritized demands.
SAP AG
AP010
5-1 9
Product requirements
priorities, resources,
horizons
? Constraints:
? Customer priority
? Product priority
Simultaneous product
and resource
planning
? Production capacity
Optimizer
? Storage capacity
? Transportation capacity
? Lot sizes
? Safety stock
Result:
? SAP AG 2001
??The
Optimizer uses linear programming to consider all relevant factors simultaneously as one
problem. The Optimizer compares alternative solutions for the incurred costs and proposes the best
feasible solution based on constraints defined in the system. You use the control costs to also
configure your priorities such as minimizing delays or minimizing on-hand stock. The Optimizer
considers all constraints in the supply chain model that were activated in the optimizer profile. As
more constraints are activated, the optimization problem becomes more complex and the time
required to solve this problem increases.
SAP AG
AP010
5-2 0
Aims of Optimization
Costs - optimal
Prerequisite: "simplified"
costs accepted
Non-delivery costs :=
Sales price + surcharge for
customer loss/dissatisfaction
(Control costs)
:= high
:= > 0, << NC
:= << NC
? SAP AG 2001
??Service
level - optimal on this slide shows the simpler configuration made by the Optimizer. You
maintain high non-delivery costs (NC) and storage costs for the finished products via mass
maintenance. The high non-delivery costs force the Optimizer to exhaust all possible procurement
and production capacities to satisfy the demands. The storage costs make sure that procurement and
production are carried out as late as possible.
??Costs
- optimal on this slide shows the more complex configuration made by the Optimizer. You
maintain realistic costs for procurement, production, transportation and storage. You model lost sales
and customer dissatisfaction via delay and non-delivery costs. In this scenario the Optimizer uses the
costs to determine the most cost-effective integrated solution.
??The
result of the optimization run is an optimal solution (minimum costs or maximum profit) taking
account of planning-relevant transportation, production, storage and handling constraints. In that
sense, the solution is feasible. However, the result might be that due date constraints are violated or
safety stocks are not filled. Due dates and safety stocks are considered to be soft constraints. There
are costs associated with such violations, so the Optimizer only proposes this solution if, according
to the costs specified in the system, it is the least costly solution.
SAP AG
AP010
5-2 1
Optimizer Decisions
? Where will procurement
take place?
? Where will production take
place?
? When will production take
place?
30
Costs
? SAP AG 2001
??The
essence of optimization is finding the best feasible solution. For example, is it less costly to
deliver two days late or to produce three weeks early? The challenge with optimization is to properly
define the relevant costs (for example, cost of late delivery). You can fine-tune the relative
importance of different cost types via the cost profile.
SAP AG
AP010
5-2 2
Heuristic:
Optimizer :
CTM:
Demand at a location
Dependent demand at loc.
Processing flow
? SAP AG 2001
??The
Heuristic is a rapid infinite planning method that generates alerts when there is a material
shortfall or resource overload.
??CTM
is a rules-based method with extensive prioritization capabilities and finite, global planning of
production resources. CTM is order-based planning that uses pegging methods to trace orders back
to the individual requirement.
??The Optimizer considers material and resource availability simultaneously. It uses linear
programming to consider all relevant factors simultaneously as one problem. In other words, there is
no sequential processing in the determination of a solution. The Optimizer considers transportation,
production, storage, and handling costs to propose a minimum cost solution that meets the respective
constraints.
??The lack of pegging of orders back to the individual requirement has the following repercussions: In
Supply Network Planning no order-based planning takes place. After the optimization run (or after
the Heuristic run), no information relating to connections between particular planned production
orders and original sales orders can be determined (CTM can, however, provide such information via
order tracing).
SAP AG
AP010
5-2 3
Heuristic
Optimizer
CTM
Speed
Quality
Prod. resources
2. Step, local
global +
global +
Other resources
2. Step, local
global +
Multi-level
Costs
Priority
Product/location
Location / prod.+
Quota arrangements
creates
? SAP AG 2001
??The
performance of the three planning methods can be divided up roughly as follows: The Heuristic
is the fastest method, CTM is in the middle and the Optimizer is the most complex and the slowest
method. This is just a rule of thumb. If you plan a lot of orders per period and location product, the
performance of CTM and the Optimizer can be compared since planning in CTM is order -based.
??The
quality of the heuristic planning result is poorest (infinite!), next comes CTM (rules), and you
should expect the best result from the Optimizer that weighs up all possibilities of this algorithm.
??Production
resources are considered globally and finitely by the Optimizer and CTM, while the
infinite planning result of the Heuristic must be postprocessed interactively.
??Transportation,
storage and handling resources can be considered globally and finitely by the
Optimizer, while the infinite planning result of CTM and the Heuristic can be postprocessed
interactively.
??All
??Costs
??Priorities control CTM. There are product, location, order and due date, procurement and stock
transport priorities. You set priorities for the Optimizer via the penalty costs for late delivery and
non-delivery of the location products.
??Quota
arrangements are used by the Heuristic and CTM. They can be optimized using the Optimizer.
SAP AG
AP010
5-2 4
Planning Process
Planning Horizon
Demand Planning
Forecast
Supply Network
Planning
Planned orders
Recommended
stock transport
requisitions
Production Planning /
Detailed Scheduling
Firmed
stock transport
requisitions
Deployment
Transport Load
Builder
Stock transport
order
? SAP AG 2001
??Deployment
determines which demands can be fulfilled by the existing supplies. If the produced and
procured quantities as well as the demands match SNP planning, the result of deployment is a
confirmation of the SNP plan. If the available quantities are not sufficient to meet the demand, the
system makes the necessary adjustments according to whether you are executing the deployment
heuristic or deployment optimization.
??The
Transport Load Builder (TLB) then groups these confirmed quantities together into stock
transport orders.
??Deployment
and the TLB confirm the OLTP stock transport requisitions and can convert them into
stock transport orders or VMI sales orders. Via Customizing -> APO -> Supply Chain Planning ->
Supply Network Planning (SNP) -> Basic Settings -> Configure Transfer to OLTP Systems you can
configure if transfer should take place using deployment or the TLB.
??Deployment
and TLB ar e simply used to confirm stock transfers. Everything beyond this, such as
route planning, selection of carriers and generation of deliveries and transportations in the OLTP
system, is planned in TP/VS (Transportation Planning and Vehicle Scheduling).
SAP AG
AP010
5-2 5
? Heuristic
?
Product by product
Heuristic
? Optimization
?
Focus on network
Product by product
Coverage maximization
Cost-based optimization
Optimization
? SAP AG 2001
??The
deployment function in SNP determines how and when inventory should be deployed to
distribution centers, customers, and vendor-managed inventory (VMI) accounts. It produces
optimized distribution plans based on constraints (such as transportation capacities) and business
rules (such as minimum cost approach, or replenishment strategies).
??A
variety of deployment strategies are used depending on the current situation (e.g., fair share, push
deployment, pull-push deployment, and minimum cost flow optimizat ion).
??The
Heuristic has a hierarchical view of the supply chain network: Deployment is always carried out
from one delivery location to the receiving locations (DCs or customers).
??The
deployment heuristic calculates a replenishment plan for a product in a delivery location. If the
available quantities are not sufficient to fulfill the demand, the system determines the distribution
plan based on fair share rules. If on the other hand supply exceeds demand, the system uses push
rules to determine the distribution plan. Fair share and push rules are defined in the deployment
profile.
??Deployment
optimization has the integrated view of the receipt situation of all delivery locations and
the demand situation of the receiving locations.
??The
deployment optimization run calculates a replenishment plan for a product in all locations within
the network. If the available quantities are not sufficient to fulfill the demand or supply exceeds
demand, the system uses minimum cost flow optimization to determine an optimum distribution plan
for the whole network at once.
??Deployment
optimization works like SNP optimization except that the production and procurement
quantities are not changed.
SAP AG
AP010
5-2 6
Deployment
Deployment adjusts the stock transfers for short-term changes
on both the supply and demand side (distribution detailed planning).
? Fair Share
?
Proportional allocation
according to demands
Proportional allocation
according to target stock
level
Quota arrangements
DC1
Plant
DC2
? Push deployment
?
Quota arrangements
? SAP AG 2001
??There
are several deployment and allocation strategies: fair share, push deployment, pull-push
deployment, and minimum cost flow optimization.
??If
??If
demand is less than supply or excess inventory exists, use a push strategy to be able to transfer
stock as early as possible.
??When excess
??For
pull/push deployment rules, the demand horizon restricts the future demands that can be
delivered early.
??Set the pull horizon on the demand profile; set the push horizon on the
SAP AG
AP010
supply profile.
5-2 7
05.01.2001
06.01.2001
07.01.2001
1000
900
400
Requirements:
100 (DC1)
500 (DC2)
800 (DC1+2)
Demand
Today
ATD Quantity:
Supply
Date:
200
600
Deployment Results
05.01.2001
06.01.2001
07.01.2001
07.01.2001
Plant to DC1
Plant to DC 2
Plant to DC 1
Plant to DC 2
100
500
100
300
? SAP AG 2001
??The
slide shows the result of a deployment heuristic using the fair share rule A that is issued after
planning in the background: Today, 1000 units are available in the plant for distribution. The stock
transfer for the current deman d from DC1 can be confirmed. The stock transfer for tomorrow can
also be confirmed. The day after tomorrow, the demand exceeds the remaining quantity in the plant,
so the 400 units are distributed using the defined fair share rule A.
??You
use the ATD (Available to deploy) quantity to describe the quantity that is determined in the
delivering plant for distribution and according to ATP rules. You configure the category groups in
Customizing and assign them to the locations. Receipts (ATR) are, for instance, stock, production
orders, purchase orders, etc. Issues (ATI) are reservations, etc.
SAP AG
AP010
5-2 8
Objective:
? Grouped according to
?
Transportation zones
Volume
Weight
Number of pallets
? SAP AG 2001
??The
primary purpose of the Transport Load Builder (TLB) is to use the results of the deployment run
(single product transport recommendations) to create multi- product transport orders in a time period
for a transportation zone. It should be ensured that:
??The transportation methods are filled to maximum capacity
??No transportation method is dispatched that is not filled to minimum capacity
??For stock transport orders that could not be satisfied during the TLB run due to specified
constraints, you can build transport orders manually
??You
can create transportation zones for the TLB or transfer them from R/3. You can thereby
consolidate your transportation capabilities (for example, use one truck to deliver orders to several
locations). You can group several locations together using transportation zones (and thereby create a
zone). TLB orders for several locations are regarded as one order for a large location, although
individual purchase orders do actually exist for separate locations.
??If
you want to use transportation zones, you create a location as a transportation zone in the location
master. (From the APO Easy Access menu choose Master Data -> Location. Use the input help (F 4)
in the Loc.type field of the location master and choose 1005 - transportation zone). You then assign
the relevant locations in the hierarchy master to this transportation zone (choose Master Data ->
Hierarchy). You can display these location hierarchies in the TLB interactive planning shuffler.
SAP AG
AP010
5-2 9
Full truck
(best price)
Minimum capacity
Half-full
truck
Days
1
? SAP AG 2001
??In
the Interactive Planning table for the TLB, you can view transport orders generated automatically
by TLB for a specific day. If the load does not meet the minimum capacity requirements specified
for a full transport load within the specified pull-in horizon, you can manually create transport orders
that are planned for later shipment and ship them early in order to build a full truck load.
SAP AG
AP010
5-3 0
? SAP AG 2001
SAP AG
AP010
5-3 1
SAP AG
AP010
5-3 2
Exercises
Unit:
1-1
1-2
Look at the future periods and check if the planned independent requirements you
released for the distribution centers 2400 and 2500 and the plant 1000 are
displayed. Analyze in which key figure the planned independent requirements are
shown.
Make sure that no distributed demands and production orders exist for the
production plants 1000 and 2300.
1-3
Run the network heuristic and check the situation for your product T-F2## for the
distribution center 2400.
Verify that there are now values in the Total receipts row.
Which plants are supplying the receipts?_______________
SAP AG
AP010
5-3 3
1-4
Check the capacity situation for resources WT-L##_1000_001 and WTL##_2300_001 in the Capacity View. Switch data views by dragging the grey bar
upwards on the left and double-clicking on data view SNP94(2) CAPACITY
CHECK.
Open the selection window and, under Show, select APO Resource. Version
000 is already displayed automatically. In the next row, enter APO Resource once
again, and on the right-hand side enter your resources WT-L##*. Load the data for
a resource into the planning table sequentially. If there are any capacity overloads,
run Capacity Leveling.
Is there any capacity overload for these resources?_________
If so, when do the violations occur?____________________
1-5
Run optimization for your product T -F2## at all locations. Load all location
products with product T -F2## into the planning table. Start the Optimizer with the
optimizer profile DISCRETE and the cost profile MASTER. Check the capacity
situation again.
1-6
Check if the receipts have been transferred to the connected R/3 System. Log on to
the R/3 System and call the stock/requirements list for your product T_F2## in
plant 1000.
SAP AG
AP010
5-3 4
Unit:
Topic: Deployment
1-1*
Run deployment for the location 1000 for the next 100 days using mass processing.
Reduce SNP transport orders. Write down the result of the deployment run:
_______________________________________________________________
_______________________________________________________________
Field Name
Input Data
Version
000
Planning book
9ASNP94
Data view
SNP94(1)
Location
1000
Product
T-F2##
Deployment horizon in
days
100
If you select Orders: Do not change the system will not change the
SNP transport orders.
The horizons in the training system are not realistic. In practice,
deployment is used to confirm stock transports for the next few days.
But in the course we cannot wait until the orders reach the short-term
horizon.
SAP AG
AP010
5-3 5
SAP AG
AP010
5-3 6
Solutions
Unit:
1-1
1-2
Look at the future periods and check if the planned independent requirements you
released for the distribution centers 2400 and 2500 and the plant 1000 are
displayed. Analyze in which key figure the planned independent requirements are
shown.
Make sure that no distributed demands and production orders exist for the
production plants 1000 and 2300.
Display the weeks in the next month and you will see the quantities in the key
figure Total demand. Only forecasts outside of the forecast horizon contribute
to the total demand.
Double-click on the Total demand row. The released data is displayed in the
key figure "Forecast". All six key figures (forecast, sales order, dependent
demand, distributed demands) contribute to the total demand.
Double-click on your product T-F2## for the distribution center 2500. Ensure
that demand is displayed.
Double-click on your product T-F2## for the plant 1000. Forecasts are displayed
but no production quantities and distributed demand.
SAP AG
AP010
5-3 7
1-3
Run the network heuristic and check the situation for your product T-F2## for the
distribution center 2400.
Verify that there are now values in the Total receipts row.
Which plants are supplying the receipts?_______________
Click on the Heuristic (network) button to run the heuristic.
Double-click on your product T-F2## for the distribution center 2400.
Double-click on the Total receipts row.
The stock transports created by the heuristic are displayed in the key figure
DistrReceipt (Planned). Right-click on this key figure and select Display
details to display the receipts from the plants in the lower window.
The production plants 1000 and 2300 supply the distribution center 2400
according to the quota arrangement for the product T-F2##.
1-4
Check the capacity situation for resources WT-L##_1000_001 and WTL##_2300_001 in the Capacity View. Switch data views by dragging the gre y bar
upwards on the left and double-clicking on data view SNP94(2) CAPACITY
CHECK.
Open the selection window and, under Show, select APO Resource. Version
000 is already displayed automatically. In the next row, enter APO Resource
once again, and on the right-hand side enter your resources WT-L##*. Load the
data for a resource into the planning table sequentially. If there are any capacity
overloads, run Capacity Leveling.
Is there any capacity overload for these resources?_________
If so, when do the violations occur?____________________
Double-click on the data view SNP94(2) CAPACITY CHECK.
Double-click on your resource in the selection window to load data for the
resource into the planning table.
The aggregated available resource is calculated from the available capacity per
workday.
If capacity overloads occur, select Capacity leveling; Capacity leveling by
backward scheduling; Time-based capacity leveling w/o priority rule;
Maximum load as a % :100%, Ignore firmed quantity. Save the result and
select again.
SAP AG
AP010
5-3 8
1-5
Run optimization for your product T -F2## at all locations. Load all location
products with product T -F2## into the planning table. Start the Optimizer with the
optimizer profile DISCRETE and the cost profile MASTER. Check the capacity
situation again.
Double-click on the data view SNP94(1) SNP PLAN. Open the selection
window and, under Show, select APO Location product. Version 000 is
already displayed automatically. In the next row, enter APO -Product once
again, and on the right-hand side enter your product T-F2##. Select Adopt,
and your selection will be adopted by the selection window.
Press the Select all symbol above the selection window and load the data by
pressing the Load data symbol.
Start the optimization run by pressing the Optimizer symbol.
Enter DISCRETE for the optimizer profile and MASTER for the cost profile and
press Execute. When the Optimizer has finished the calculation, the resulting
costs are displayed. When you have analyzed the costs, select the green arrow
BACK to return to the planning table. Now you can check the resource loads
again.
1-6
Check if the receipts have been transferred to the connected R/3 System. Log on to
the R/3 System and call the stock/requirements list for your product T_F2## in
plant 1000.
SAP standard menu ? Logistics ? Production ? MRP ? Evaluations ?
Stock/Reqmts List
Enter your product T-F2## and the plant 1000, for example, and confirm.
The SNP planned orders and releases for the stock transport requisitions are in
R/3. The planned independent requirements are not transferred back via CIF but
via mass processing in Demand Planning.
SAP AG
AP010
5-3 9
SAP AG
AP010
5-4 0
Unit:
Topic: Deployment
1-1*
Run deployment for the location 1000 for the next 100 days using mass processing.
Reduce SNP transport orders. Write down the result of the deployment run:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
Supply Network Planning? Planning ? SNP in the Background ? Deployment
Field Name
Input Data
Version
000
Planning book
9ASNP94
Data view
SNP94(1)
Location
1000
Product
T-F2##
Deployment horizon in
days
100
SAP AG
AP010
5-4 1
Contents:
? Consumption of planning by sales orders for forecastcontrolled products in make-to-stock and make-to-order
production
? Simultaneous material and capacity requirements planning at
operation level in the production plant
? Tools for production planning and production scheduling
? Schedule optimization in PP/DS
? Transfer of planning results to the execution system
? SAP AG 2001
SAP AG
AP010
6-1
Course Objectives
? SAP AG 2001
SAP AG
AP010
6-2
1 Course Overview
22 Integration and Technology
3 Modelling and Evaluation in APO
4 Demand Planning
55 Supply Network Planning
Production Planning/Detailed
66 Scheduling
7 Transportation Planning
88 Global Available-to-Promise
99 Conclusion
? SAP AG 2001
SAP AG
AP010
6-3
Business Scenario
? SAP AG 2001
SAP AG
AP010
6-4
Immediate and automatic planning (for example, to trigger production from the
plant) - close integration with plant
Planning with exact times, even for dependent requirements (for example, a
prerequisite for material staging by shift)
Multi-level capacity requirements planning possible: automatic, multi-level, bidirectional propagation of order changes
? SAP AG 2001
??Simultaneous
material and capacity requirements planning: You can define resources as finite
resources in the resource master (resources critical for planning). At these resources, operations of
orders are only created if there is enough capacity available for the order quantity on the order date.
If there is not enough capacity available, the system searches for a new date, taking the capacity
situation into account.
??Automatic
planning immediately: If you set this indicator for a product (PP/DS tab in the product
master), the system starts a single-level planning run for this product for each change made that is
relevant to planning (for example, a new sales order). At the same time (immediately) a multi-level
ATP check is performed for the product and for the assembly/components for which automatic
planning immediately is defined.
??Planning
with exact times: Dependent requirements and orders are created with a time.
??Bi-directional
propagation of order changes: If you make time-related changes to orders at, for
example, finished-product level, you can specify that the system is to automatically move the
assembly orders. If, however, there is not enough capacity at that time for the assembly orders, an
exception message can be generated or the order is not moved at finished product level. In the other
direction, moving assembly orders can have an effect on finished product orders.
??Planning
alternative resources: If not enough capacity is available at a resource, the operation can
be rescheduled at alternative resources (maintained in the PPM).
??Schedule
optimization: During planning, it may be that orders were generated whose order
sequence is not optimum. Therefore, you can change the sequence and resource assignment of
existing orders in the optimization run.
SAP AG
AP010
6-5
SNP
Create,
change
Create,
change
Create,
change
Create,
change
Order
4715
Order
4716
Order
4717
160
35
We
Th
Receipts
Order
4712
Today
50
Mo
Reqmts in plant
Order
4713
100
Order
4714
40
210
Tu
Time
Production horizon
(per product)
? Capacities and material are planned
based on exact times (to the second)
? SAP AG 2001
??If
you decide to plan using both Supply Network Planning (SNP) and Production Planning and
Detailed Scheduling (PP/DS), the production horizon is used to separate the areas of responsibility
for these two planning functions:
??Supply Network Planning is used for medium -term to long-term planning across the whole
logistics chain (especially if several plants and distribution centers are available). Requirements
for a defined bucket (for example, day) are aggregated. In this case, it is irrelevant whether a
requirement is in an early shift or late shift since the requirements are only roughly planned, and
even the time positions of breaks are not taken into account. Furthermore, you are not only able to
perform time aggregated planning in SNP, but also period aggregated planning (if desired). You
can define bucket resources to be used for SNP which can represent, for example, the available
capacity of a whole warehouse. Since you create separate PPMs for SNP (which are usually
copied from PP/DS -PPMs), you can describe production at these bucket resources. Order
sequences play no role in the time area of SNP planning.
??PP/DS is used for short-term planning in which orders must be scheduled to the minute and order
sequences must be taken into account (sequence planning and optimization).
??As
soon as a requirement is within the production horizon, it is no longer planned in the SNP
planning run, but rather in the production planning run in PP/DS. Orders can be manually created or
changed in PP/DS across the complete time axis, irrespective of the production horizon. During
automatic planning (the production planning run) in PP/DS, only orders within the production
horizon are created. In SNP, however, orders cannot be created or changed in the production horizon.
Orders that are in the production horizon and thus planned by PP/DS are still displayed in SNP as
aggregated requirements for the defined bucket.
SAP AG
AP010
6-6
SNP
Create
Production horizon
100
Scheduling according
to the PPM for SNP
Today
Production horizon
100
Today
Delete
PP/DS
Production horizon
100
Today
PP/DS
Scheduling according
to the PPM for PP/DS
Create again
? SAP AG 2001
??In
this graphic, an order is created in Supply Network Planning using the production process model
defined in SNP. Production process models are created (the SNP-PPM can be copied from PP/DSPPM, which is generated via the R/3-APO interface from the R/3 routing/BOM). Bucket resources
(used only in SNP) or mixed resources (which can be used both in PP/DS and SNP-PPM) are
planned in Supply Network Planning. Orders are aggregated for each defined bucket.
??As
soon as the start date of the order enters the production horizon, the SNP order is no longer
planned by SNP. The SNP order must be converted into a PP/DS order so it can be planned by
PP/DS. To do this, background conversion is available in the PP/DS menu, which can be used to
schedule periodically. The conversion creates the order again in PP/DS using the production process
model defined there. Before the conversion, the aggregated requirements are displayed in SNP as
planned production. After the conversion in PP/DS, the orders are still displayed as aggregated
requirements in SNP.
??The
production horizon is defined as a number of days from the current day into the future in which
PP/DS is to be used to plan. The production horizon can be defined in Customizing for Supply Chain
Planning, in the IMG activity, Display Global Parameters and Default Values. You may also define
a production horizon for each product per location in the product master. This definition takes
priority over the Customizing definition.
SAP AG
AP010
6-7
Requirements Strategies
Requirements
strategies
Quantity 100
Date
05/10
Quantity
Date
?
?
SD
Planned
indep.
reqmts
Sales
order
Production /
Purchasing
? SAP AG 2001
??A requirement
Customer
??Independe nt
??Some
requirements strategies support make-to-order production. In this case, you may not start
production or purchasing, for example, until a sales order has been received.
??Some
SAP AG
AP010
6-8
Requirements Strategies
? SAP AG 2001
??Requirements
strategies represent the business procedure for planning production quantities and
dates. A wide variety of requirements strategies are available offering a number of different
possibilities for planning, ranging from make-to-order production to make-to-stock production.
Depending on the strategy you select, you have the following options:
??Make-to-stock production based on sales orders and/or planned independent requirements at
finished product level
??Planning specifically for the assembly, if you can plan more easily at component level. Final
assembly takes place in make-to-stock or make-to-order production.
??Stocking up of assemblies by planning at finished product level, but final assembly is not triggered
until the sales order is received. Final assembly takes place in make-to-stock or make-to-order
production.
?? Make-to-order production only, without planning the finished product or the components
??Furthermore,
you can combine requirements strategies. This allows you to plan a finished product
with a requirements strategy for make-to-stock production as well as plan an important assembly that
is also sold as a spare part.
??The
planning strategies available for a material can be found in APO Customizing for Master Data
(in step Determine Requirements Strategies). You can assign a requirements strategy to a material in
the Requirements strategy field. Each requirements strategy contains important control parameters
for the consumption of sales orders (or dependent requirements) and planning.
SAP AG
AP010
6-9
Dependent
requirements
Product
planning run
Purchase
requisition
Planned order
Convert
Production
order
Process
order
Sales orders,
Planned ind. reqmts
Sched. agree.
del. schedule
Convert
Plnd order for
repetitive man.
In-house
production
Order
Sched. agree.
del. schedule
External procurement
Execution
? SAP AG 2001
??Material
requirements planning deals with current and future requirements. The planned
requirements quantities trigger planning (in consumption-based planning, for example, planning is
triggered when the reorder point is not reached). Requirements elements for material requirements
planning are, for example, sales orders, planned independent requirements, dependent requirements.
??If the
production planning run discovers shortage quantities, procurement proposals are generated:
purchase requisitions and planned orders are internal planning elements which can be changed,
rescheduled or deleted at any time.
??In the case of in-house production the system creates planned order for planning production
quantities. When planning is complete, planned orders are converted to production orders.
Dependent requirements for the planned order are converted to reservations for the production
order.
??In external procurement, the system generates a purchase requisition for planning external
procurement quantities. When planning is complete, the purchase requisition is converted to an
order. If a material exists for a scheduling agreement, scheduling agreement delivery schedules
can also be generated directly during the production planning run.
??When
planning is complete, in-house production or external procurement must be triggered. For this,
??Planned orders are converted to production orders if you are working with discrete manufacturing
(order-based production)
??Planned orders are converted to process orders if you are working with process manufacturing
??Planned orders are used as a basis for production if you are working with repetitive manufacturing
(period-based instead of order -based)
??Purchase requisitions are converted to purchase orders
SAP AG
AP010
6-1 0
Availability date
Operations
Start date
Finished
product
End date
10
Stock transfer
to a different
plant
10
GI processing time
Assembly of
a different
plant
20
30
GR processing time
GR processing time
10 20
10
GR processing time
GR processing time
Time
Reqmts date
? SAP AG 2001
??When
the lot size of the planned order has been determined and the PPM has been exploded, the
production planning run calculates the dates of the planned orders.
The dependent requirement dates of the planned orders are moved to the dates of the assigned
operations (PPM). A material order appropriate for the operation is then possible.
??The
system assumes material staging according to component assignments in the PPM to the
operations in the PPM. The dependent requirement dates of the BOM components are moved to the
production start dates of the operations to which they are assigned.
SAP AG
AP010
6-1 1
Resource availability
Available
Occupied
Final loading
Confirmed
qty/date
30
Resource 3 (finite)
30
20
Resource 2 (infinite)
Resource 1 (finite)
10
20
10
Time
Today
Raw material
Possible ALERTS:
Resource Overload
Supplier-supplier time violated
Supplier-resource overload
? SAP AG 2001
??If
a product is not available, the requirement (the sales order or dependent requirement, for example)
triggers production directly: If it triggers an order for in-house production, APO creates a planned
order for the desired quantity in PP/DS. All of the operations of the PPM are scheduled at the
resources of the PPM, and the system takes the capacity restrictions into account (available capacity
and orders that may have already been scheduled).
If the capacities are already exhausted on the desired date, the system uses simultaneous material and
capacity requirements planning to find a date on which the planned order can be created. You use the
strategy profile to define how the system is to schedule (search for a slot, infinite planning ...).
??Prerequisite:
??Maintain resources critical to planning as finite resources in the resource master. At these
resources, operations of orders are only created if there is enough capacity available for the order
quantity on the order date.
??Maintain the strategy profile with which you want to trigger the scheduling of planned orders in
planning under Global Settings in Customizing for PP/DS, in the Strategy profile field. The
default strategy profile in the delivery system is SAP002 (search for a slot backward).
SAP AG
AP010
6-1 2
Table area
Column
heading
Lines
Diagram area
Resource chart
Short
03/15/1999
descrip22 00 02 04 06
tion
Res.
Res.
type
Res01
Loc 01
Res02
Loc 01
Res03
Loc 02
08
10
12
14
16
18
20
22
03/16/1999
00 02 04 06
08
14
16
18
20
22
03/16/1999
00 02 04 06
08
18
20
22
03/16/1999
00 02 04 06
08
Order Chart
Chart objects
OrderNo
Products
000001294
000001335
000001357
22
03/15/1999
00 02 04 06
22
03/15/1999
00 02 04 06
08
10
12
Product histogram
Product
Product 01
08
10
12
14
16
300
200
100
Different
charts
Message bar
Graphical object
(operation, order)
? SAP AG 2001
??Schedules
??The
planning board is used for interactive planning, for example, for interactive processing and
dealing with Alerts.
??You
can call the planning board directly from the Production Planning/Detailed Scheduling menu or
from order processing.
??You
SAP AG
AP010
6-1 3
Objective function =
MINIMUM
? SAP AG 2001
SAP AG
AP010
6-1 4
End
Resource A
Resource B
Resource C
Resource D
Resource E
Non-working times
Fixed operations
Operations, that may be rescheduled
Relationships
Transferred resources: B, C, D
Optimization range
? SAP AG 2001
??The
relationships of the fixed orders and operations to the non-fixed orders and operations determine
if and by how much these orders and operations can be shifted during optimization. The optimized
schedule is, therefore, adjusted to accommodate the fixed orders and operations.
??The
system does not change planning outside of the optimization window during planning. Activities
outside of the optimization window are fixed during optimization. However, the fixed activities
determine by their relationships to the non-fixed activities in the optimization range, whether and
how far these activities can be rescheduled during optimiz ation. The optimized schedule is,
therefore, adjusted to accommodate the fixed activities.
??Earliest
start date for the optimized schedule: Before the optimization, you specify the earliest
date on which the optimization function can schedule the activities. You cannot enter an earliest start
date that lies in the past.
SAP AG
AP010
6-1 5
Prod.
A
B
C
B
0
30
30
Setup
time
10
0
25
Setup
time
Requirements time
Setup
time
Operations of products A to C at paint shop according to schedule (starting situation for optimization): planned
orders for A were created first, then for B and C
Setup
time
Setup
time
A
time
etup
um s
im
t
p
O
Setup
time
Setup
time
? SAP AG 2001
??Use:
You can optimize the schedule for single resources based on the sum of the setup times and
sum of the setup costs. The system determines sequence dependent setup times and setup costs from
the setup matrix (which can only be maintained for single resources).
??Prerequisites:
??You have modeled the single resources and the operations that are processed at these resources
exactly as with the setup time adjustment (see the unit Simultaneous Material and Capacity
Requirements Planning).
??You strongly weighted the setup times or the setup costs in the objective function.
??Scope of function:
In the objective function, the system interprets the values for the setup times and
setup costs from the setup matrix as follows:
??You enter the setup time in a unit of your choice (for example, hours or minutes) in the setup
matrix. The system uses the setup duration in seconds in the objective function. If you enter, for
example, a setup duration of 10 min utes in the setup matrix, the system uses the value of 600
(seconds) in the objective function.
??You enter the setup costs without unit of measurement in the setup matrix. In the objective
function, the system directly uses the value entered in the setup matrix. If you enter, for example,
the value 10 for the setup costs in the setup matrix, the system uses the value of 10 to calculate in
the objective function.
??Important: In the objective function, the setup costs with a value of 10 correspond to a setup
duration of 10 seconds. You must consider this relationship between setup times and setup costs
when defining the objective function, that is, when specifying the weighting for the setup times and
the setup costs.
SAP AG
AP010
6-1 6
Individual
Individual conversion
conversion
Planned
order
Production
order
Purchase
requisition
Order
Collective
Collective conversion
conversion
Planned
orders
Purchase
requisitions
Production
orders
Orders
? SAP AG 2001
??You
can trigger the conversion of planned orders and purchase requisitions to production orders or
orders directly in APO. You set the conversion indicator in APO for the orders you want to convert.
The orders are transferred to the OLTP system and converted automatically. The converted orders
are sent back to the APO System with a different ATP category (purchase requisition to purchase
order). If a planned order is converted to a production order, the dependent requirements of the
components are converted to reservations.
??You
can convert planned orders and purchase requistions in one of the following two ways:
??Individually in interactive planning: In the product view and the product planning table, you can
select orders to be converted and then choose Set conversion indicator. When you save the
planning results, the orders to be converted are transferred to the R/3 System, where the
conversion will be automatically triggered. The converted orders are sent back to the APO System
with a new ATP category.
??Using mass conversion and selection criter ia (Choose Production Planning -> Manufacturing
Execution -> Conversion of Orders/Purchase Requisitions): You can set the conversion indicators
for a large number of orders or for several products. You can restrict the selection of orders to be
converted by entering the product, location, production planner and the offset for the opening
period. The opening period, which is defined in the product master on the PP/DS tab, controls
which orders are to be converted. The opening period is a number of workdays starting from the
current date. The APO System only sets the conversion indicators for orders whose order start
dates are within this period. The opening period is used both for in-house production orders and
external procurement orders.
??Prerequisites:
On the PP/DS tab in the product master, you have maintained an opening period for
each product at the location level.
SAP AG
AP010
6-1 7
Purchase requisition
Opening
period
Planning
Planned order
Creation
date
Production
start
Production
finish
Production orders/
process orders
Time
Order header
Orders
Operations
Materialcomponents
Production resource/tool
Costs
? SAP AG 2001
PlanK
Plnd
Actual
100
20
50
In-house
production
External procurement
??APO
orders contain three dates: production start, production finish, creation date. The creation date
is the date on which a planned order is to be converted to a production order or a purchase requisition
to an order. This date is based on the opening period defined in the R3 material master (SchedMargin
key field). The opening period from the SchedMargin key of the R/3 material master is transferred to
the APO product master in the R/3 APO interface (Opening field in the Horizons group box).
??As
soon as the creation date of a planned order is passed on to a time horizon selected in mass
conversion, it can be converted in mass conversion. The time interval (offset time) entered in mass
conversion is always valid as of today's date. Planned orders whose creation dates are in the past are
automatically selected too.
??Planned
??In in-house
SAP AG
AP010
6-1 8
? SAP AG 2001
SAP AG
AP010
6-1 9
SAP AG
AP010
6-2 0
Exercises
Unit:
1-1
In the Product View in APO, look at the planned independent requirements for
pump T-F2## at location 1000 (production plant Hamburg) .
1-1-1 Why have no planned orders been created, in the near future, for the planned
independent requirements?
_____________________________________________________
To return to the display of the stock/requirements situation, select the
Elements tab.
SAP AG
AP010
6-2 1
1-2
Execute a production planning run to schedule the production of the pumps. In this
example, planning should not be triggered from the product view; rather, the
production planning run should be used.
1-2-1 Exit the product view and follow the menu path for the production planning
run. In the production planning run, in plant 1000, you plan all products for
which you have planned t he production planner.
In the production planning menu, select the following variant:
SAP_MRP_001 .
After making this selection, choose Selection criteria .
Now select the following values:
Field
Values
Product
Location
1000
Production planner
0##
Choose Execute.
1-3
In the Product View in APO, look at the planning result for the APO product T F2## at location 1000 (production plant Hamburg).
1-3-1 Look at the situations of the planned order for product T -F2## and check the
requirements/receipt situation for all components.
Were all requirements planned in planning?
_____________________________________________________
1-3-2 Now check the planned order details:
Look at the component list of the latest planned order within the production
horizon: Double -click on the latest planned order within the production
horizon to go to the planned order.
After double -clicking, you can see the detailed data (header data) of the
planned order on the right, and the complete structure of the planned order
on the left. On the left you can recognize the receipts, components
(requirements) and operations of the planned order.
When are the start and end dates of the planned order for the final assembly
of pump T-F2##?
_____________________________________________________
SAP AG
AP010
6-2 2
How many operations have been scheduled in the planned order on the
various resources?
_____________________________________________________
Which assemblies (and also dependent requirements) are contained in the
planned order for the pump T-F2##?
_____________________________________________________
SAP AG
AP010
6-2 3
SAP AG
AP010
6-2 4
Unit:
After you have executed the planning run for your plant 1000 in
Hamburg, you must then reschedule the sequence of the existing
orders.
1-4
Until now, we have only created requirements and orders for pump T-F2## (white
pump). Now, create some more planned independent requirements for pump T-F4## in
plant 1000.
To demonstrate that planned independent requirements can be created not only using
APO Demand Planning, but also using R/3 Program Planning, create the planned
independent requirements manually in R/3.
Note : Creation of planned independent requirements in R/3 is useful if you are
performing demand planning in R/3, or are not performing demand planning and wish
to maintain the planned independent requirements manually.
1-4-1 Enter the independent requirements for material T-F4## in plant 1000 in the
R/3 program planning. In the initial screen of the transaction, enter T (day
format) in the planning period field, to select day schedule lines as the period
schedule line.
In the planning table, select the first row of the table and choose the delivery
schedule tab.
Enter the following independent requirements for pump T-F4## in plant 1000:
Friday in a
week
Friday in
two weeks
Friday in
three weeks
Friday in
four weeks
AP010
6-2 5
1-5
Check the sequence of the planned orders for both product pump T -F2## (white pump)
and T-F4## (blue pump). To do this, use the detailed scheduling planning board.
1-5-1 Call up the variable view of the Detailed Scheduling Planning Board. Choose
the Pump ## overall profile and confirm using Enter.
You see that the work area Pump ## was selected automatically when you
selected the overall profile Pump ##. This includes all resources for the final
assembly of the pumps.
Enter the detailed scheduling planning board using the selection criteria
specified above and then navigate in the planning board.
1-5-2 Look for the first orders for products T-F2## (white pump), and T-F4## (blue
pump) by selecting the respective product numbers one after the other in the
Product chart and then right-click to select "begin with first graphical object".
Look in the Resources chart to see which resources the pumps occupy. To find
out which capacity loads belong to which order in the resources chart, select the
first planned order for the product T-F2## and then right-click to select Mark
objects for the same order.
All capacity re quirements belonging to the order are then shown in color.
1-5-3 In the Detailed Scheduling Planning Board, you can now manually reschedule
orders/operations using Drag & Drop, or you can start the Optimizer for
automatic sequence planning.
However, only observe the planning result here, and then exit the Detailed
Scheduling Planning Board without saving.
SAP AG
AP010
6-2 6
Solutions
Unit:
1-1
1-2
1-3
SAP AG
AP010
6-2 7
Are the components T-B1## (casing), T-B22## (fly wheel), T-B3## (hollow
shaft) and T-B4## (electronic turbo-drive) also planned automatically and
immediately? Are there any alerts for the components of the planned order?
Only the dependent requirements of the hollow shaft are planned
immediately; the other dependent requirements were not planned. However,
these are partially covered by storage location stock .
Solutions
SAP AG
AP010
6-2 8
Unit:
1-4
1-4-1 R/3 menu path: Logistics ? Production Planning ? Program Planning
? Planned Independent Requirement ? Create
1-5
1-5-1 APO menu path: Production Planning ? Interactive Production Planning
? Detailed Scheduling Planning Board
1-5-2
1-5-3
SAP AG
AP010
6-2 9
Contents:
? Route optimization
? Transportation consolidation
? Carrier selection
? Shipment tendering
? SAP AG 2001
SAP AG
AP010
7-1
Unit Objectives
? SAP AG 2001
SAP AG
AP010
7-2
1 Course Overview
22 Integration and Technology
3 Modelling and Evaluation in APO
4 Demand Planning
Supply Network
55 Planning
Production Planning/Detailed
6 Scheduling
7
77 Transportation
Planning/Vehicle Scheduling
8 Global Available-to-Promise
99 Conclusion
? SAP AG 2001
SAP AG
AP010
7-3
Business Scenario
? SAP AG 2001
??The
Precision Pump Company is using Transportation Planning to make optimum usage of available
capacities in trucks, trains, ships, and aircraft . Their aim is to perform planning more efficiently and
reduce costs.
Vehicle Scheduling to analyze and modify the plan that was generated during
Transportation Planning. For example using carrier selection manually to fix planning results, and
transfer them to the OLTP system for transportation execution (LES).
SAP AG
AP010
7-4
Transportation Management
APO TP/VS
(Planning)
BW
(Monitoring)
LES
(Execution)
??The
APO system includes the tactical and operational planning area from the SAP Transport
Management solution, which is complemented for transportation execution by the SAP component
from Logistics Execution Systems (LES).
SAP AG
AP010
7-5
Demand Planning
Unconstrained
Forecast
Aggregated planning
Supply Network
Planning
Planning
Constrained
Mid-term planning
PP/DS
Constrained
Detailed planning
Planned
orders
Constrained
Deployment
TP/VS
Stock transfers
Planned
deliveries
Planned
shipments
Transport Load
Load
Builder
? SAP AG 2001
??Supply
Network Planning is used for long-term and mid-term planning. A big advantage of this
component is the sourcing which determines where and how a product will be procured. Sourcing is
optimized by functions such as the Transport Load Builder (TLB). Bucket capacities are used in
Supply Network Planning to plan products. These bucket capacities show the most detailed level of
daily planning.
??In
Vehicle Scheduling, resources and transportation processes are maintained in detail, so that
planning will be performed as precisely as possible. When orders from Supply Network Planning
become VS orders, the following happens:
??the orders are received in a specific sequence
??the exact transportation time is specified
??information and processes that were still outstanding are added (data and processes that are not
necessary for Supply Network Planning, but are for Vehicle Scheduling such as loading and
delivery activities)
SAP AG
AP010
7-6
Outbound
Transportation
zones
Replenishment
Inbound
? SAP AG 2001
??Customers
or suppliers can be grouped into transportation zones to reduce the complexity of TP/VS
problems.
??The
unbroken line is modeled and the broken lines are generated by the optimizer.
??If
a transportation zone is loaded with customers from the R/3, an associated hierarchy is generated
automatically.
SAP AG
AP010
7-7
Objective:
Deliveries and
transportation orders in R/3
Simultaneous route
planning and transportation
consolidation
Optimizer
TLB orders
Express orders
Vehicle
resources
Selection of
transportation provider
? SAP AG 2001
??Optimization in
??define the maximum transportation capacity of a carrier per day and per transportation lane
??fix a specific minimum service acceptance to define the minimum of shipments that must be made.
Transportation allocations are maintained as time-dependent
??The capacity utilization (in percentage terms) of a carrier, plays an important role, and should be
computable (also refer to the Business Share Strategy used in carrier assignment).
??It
is a particularly good idea to use carrier transportation capacities if you are working with priorities
for various carriers.
SAP AG
AP010
7-8
Master data
Configuration
Modeling
Optimization
(Route planning and
transportation consolidation)
Backorder processing
Create/transfer
shipments
Create/transfer
deliveries
Select carrier
Publication of
deliveries
Shipment tendering
? SAP AG 2001
??You
SAP AG
AP010
7-9
TP/VS Tendering
EDI
Business
Business scenario:
scenario:
Internet
Internet tendering
tendering
Create
deliveries
Publish
Business
Business scenario:
scenario:
Internet tendering
tendering
XML
Transportation
Transportation planner
planner
HTML
Release for
execution
Service
Service agent
agent
Accept / Refuse
? SAP AG 2001
SAP AG
AP010
7-1 0
Unit Summary
? SAP AG 2001
SAP AG
AP010
7-1 1
Contents:
? Global ATP and Integration with OLTP
? Integration with PP/DS
? Rules-based ATP
? Product Allocations
? SAP AG 2001
SAP AG
AP010
8-1
Unit Objectives
? SAP AG 2001
SAP AG
AP010
8-2
1 Course Overview
22 Integration and Technology
3 Modelling and Evaluation in APO
4 Demand Planning
55 Supply Network Planning
Production Planning/Detailed
6 Scheduling
7 Transportation
Planning/Vehicle Scheduling8
88 Global Available-to-Promise
99 Conclusion
? SAP AG 2001
SAP AG
AP010
8-3
Business Scenario
? Precision Pump company intends to use rulesbased ATP to be able to carry out a multi-plant
search for products requested by its customers. If
the pumps are not available, the feasible delivery
date can be determined, taking account of
resource availability.
? SAP AG
AG 2001
SAP AG
AP010
8-4
R/3
BW
LIS, CO/PA
HR, FI
Sales
orders
Shop floor
control
Inventory
management
Transportation
processing
Historical
Historical
data
data
Demand Planning
Global
ATP
Production
Planning and
Detailed
Scheduling
Supply
Network
Planning
Deployment
Key
performance
indicators
(KPIs)
Transportation Planning
? SAP AG 2001
??In
the R/3 APO interface you can define that the ATP check of products (ATP check, ATP =
Available-to-Promise) should not be carried out in R/3 but in APO, as soon as a sales order is
created.
??Sales
orders created in the OLTP system (for example, R/3 System) automatically trigger the
availability check in APO in this case. Depending on the system settings, a check can be carried out
against inventory, production plans and distribution plans.
??Planned
orders that are created via ATP integration with PP/DS can be sent back directly to the
OLTP systems.
SAP AG
AP010
8-5
? SAP AG 2001
??Rules-based ATP
??Integration
between sales and distribution and production : You can also define that the sales
order triggers production directly if a product is not available. If it triggers an order for in-house
production, APO creates a planned order for the desired quantity in PP/DS (Production Planning &
Detailed Scheduling).
??In
addition, component availability can be checked (multi-level components and capacity check).
??Check
against aggregated data: Planned orders and production orders are aggregrated and
represented in a time series, which can be used to evaluate the incoming requests from the sales
orders. This means that better system performance is then available.
SAP AG
AP010
8-6
Global ATP
R/3
APO
Article
structure
Customer
Sales
orders
40 pieces
ATP request
Confirmation
Alternative locations
Alternative products
Alternative PPMs
? SAP AG 2001
??Global
ATP is embedded in Supply Chain Management (SCM) processes for any kind of order
processing.
??Availability
checks are triggered as events in the OLTP system - either R/3 or legacy systems - and
an ATP request for product availability is sent over to APO.
??An
Available-To-Promise (ATP) check is an online search to verify the company's ability to provide
the requested product, in the requested quantity, and on the date requested by the customer.
??In
many OLTP systems, ATP functionality is limited or not possible at all. In older versions of R/3,
an ATP check searched local inventories only for available products and assumed infinite capacity
when a product had to be produced. For this reason, ATP checks are carried out in APO on the basis
of time series, either in real-time or in simulation mode.
??When
it comes to production, ATP makes use of PP/DS (Production Planning and Detailed
Scheduling) functionality to check against the actual order network including all constraints.
??Applying
rules-based ATP is the basis for checks of alternative products in alternative locations as
well as for production.
SAP AG
AP010
8-7
Receipts
Stock
Production Purchase
requisition
order
Further salesrelated
requirements
requirements
Planned
order
Time
Reservation
Reservation
Issues
? SAP AG 2001
??In
accordance with ATP settings in APO, you can take into account various stock, requirements and
receipts in the availability check. You can define which requirements and receipts to use as a basis
for a sales order confirmation that you want to give the customer.
??The
SAP AG
AP010
8-8
Category
Time unit
? SAP AG 2001
??The
data sent from the OLTP system is aggregated and represented in a time series consisting of the
corresponding ATP objects that are then used to evaluate the incoming ATP requests.
??The
time series display (see picture above) shows the receipt elements above the line. The issue
elements are below the line.
??If
the stock is zero or negative, a new order can only be confirmed for a later date.
??To
differentiate between the various levels of probability with which a specific product will be in
stock in the future, there is a time series for each type of ATP category.
??Examples
of ATP categories: firm planned order, consignment stock, released production order.
??To
improve your system performance, ATP gives you the option to aggregate orders by reorganizing
time series'. All receipts and issues within one period are cumulated. The ATP check checks against
these aggregated quantities.
??ATP
SAP AG
AP010
8-9
Problem:
PPM explosion
e
tiv
na t(s)
r
te c
Al odu
pr
Possible solution:
Step 1: Alternative product
Step 2: Procurement from another location
Step 3: Production (PPM explosion)
Alternative location(s)
? SAP AG 2001
??Rules-based
availability checking is an iterative process. The rules stored in the system determine the
next checking step in each case.
??Possible
(alternative location)
search stops when an acceptable result is provided by the check (if any number of substitution
steps is permitted).
??In
the rule strategy settings, however, only one substitution can be selected. In this case the system
completes the rule evaluation. Without customer -specific coding (= customer exit) the system
chooses the first result that covers the requirement completely. By activating the customer exit you
can decide which selection is appropriate and if a dialog should be displayed. Only one result is
permitted.
??The
rule strategy forms the actual rule-base for a specific check. In the simplest case, this search
strategy defines the sequence in which the system reads the individual rules.
??Each
??You
can thereby define, for example, that sales orders for different sales organizations, sold-to
parties, and so on, are checked using different ATP rules. Depending on these values, the
corresponding rule is evaluated.
SAP AG
AP010
8-1 0
R/3
APO
Confirmation
Sales
Sales (SD)
ATP request
ATP check
For non-availability
Sales
Sales order
order
Planned
Planned order
order
Planned order
MRP
Produce
Production
Production Planning/
Planning/
Detailed Scheduling
? SAP AG 2001
??In
the R/3-APO interface, you can specify in the integration model that the availability check (ATP
check) in the sales order is not to be performed in R/3, but rather in APO (Availability check
indicator). If you create a sales order in the R/3 System, the system first checks whether there is
enough stock available for this product. It can also check whether receipts (such as production orders
or planned orders) are scheduled before the desired date.
??For non-availability,
you can specify in APO that the system is to perform an availability check for
the product in a different location or for an alternative product. Furthermore, if a product is not
available, you can define that the sales order can trigger production directly. In this case, it triggers
an order for in-house production and APO creates a planned order for the desired quantity in PP/DS.
All of the operations of the PPM are scheduled at the resources of the PPM, and the system takes the
capacity restrictions into account (available capacity and orders that may have already been
scheduled). In addition, the availability of the components can be checked (Automatic planning
indicator in the product master of the components). If the capacities are already exhausted on the
desired date, the system uses simultaneous material and capacity requirements planning to find a date
on which the planned order can be created.
??The
availability date of the newly created planned order (finish date) is passed back to the R/3 sales
order and copied as the internal confirmation date. Delivery scheduling is used to determine the date
in the sales order on which the customer can receive the product. The sales employee can find this
delivery date in the R/3 sales order. When you confirm this proposed date in the sales order and save
it, the APO planned order, which was only simulated, is transferred back to R/3 and is visible there.
SAP AG
AP010
8-1 1
Sales order
Available
Occupied
Final loading
Desired date
and quantity
30
Resource 3 (finite)
30
20
Resource 2 (finite)
Resource 1 (finite)
Confirmed
qty/date
20
10
10
Time
Today
? SAP AG 2001
??If
a product is not available, the sales order can trigger production directly: If it triggers an order for
in-house production, APO creates a planned order for the desired quantity in PP/DS. All of the
operations of the PPM are scheduled at the resources of the PPM, and the system takes the capacity
restrictions into account (available capacity and orders that may have already been scheduled).
If the capacities are already exhausted on the desired date, the system uses simultaneous material and
capacity requirements planning to find a date on which the planned order can be created. You use the
strategy profile to define how the system is to schedule (search for a slot, infinite planning ...).
??Prerequisite:
??In the "rules-based availability check", define that production is to be triggered directly for nonavailability (this function can be used in connection with all requirements strategies in planning).
??Maintain the strategy profile with which you want to trigger the scheduling of planned orders from
the ATP integration and maintain them under Global Settings in Customizing for PP/DS, in the
Strategy profile for ATP integration field. The default strategy profile in the delivery system is
SAP001 (search for a slot backward).
??You define in APO how the availability of a sales order is checked in APO (for example, checking
against stock, checking against forecasting, checking against allocation, or checking using rules based ATP (also checking against alternative products/locations or triggering production from the
sales order). Here, depending on the R/3 requirements class and the business event (for example,
A = sales order, AE = make-to-order sales order, B = delivery), you can define which check if any
should be performed (check against stock, against forecasting, against allocation or rules-based
ATP). If you use rules -based ATP, the corresponding rules are selected according to material,
sales organization, sold-to party, plant, etc (condition technique).
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AP010
8-1 2
Product Allocation
Demand
Jan Feb
Mar
Apr
Receipt
? SAP AG 2001
??Product
allocation functionality allows you to manage the supply of scarce products to customers, so
that each customer receives an allocated amount.
??Product
allocations are applied to a product allocation object. The product allocation object is the
reason for allocating quantities. It could be any one of the following:
??A product (personal computer) or a product group
??A component (processor)
??A season (summer, winter)
??A production line
??The
reason for product allocations may vary in different phases of the product life cycle.
SAP AG
AP010
8-1 3
Backorder Processing
June
July
Aug.
Sept.
Time
June
Stock
Sales order
Planned order
July
Aug.
Sept.
Time
Checking horizon/
Replenishment lead time = 2 periods
? SAP AG 2001
??Backorder
processing is one of the new availability check tools that enables you to analyze and edit
backorders and to overwrite confirmed quantities as the result of the previous ATP check. You can
redistribute the confirmed quantities of one or more products via selected customer requirements.
??Backorder
orders to be processed are determined via a filter that is to be defined. This filter definition can
be configured by the user or you can use the standard filters provided by SAP, which filter according
to locations in which the planning situation has changed (netchange filter). They must be taken into
account again within backorder processing.
??After
the orders have been selected once via the filter, they can be sorted via specific configurable
criteria.
??The
orders whose delivery date now lies in the past can be scheduled in the future, if desired.
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AP010
8-1 4
? SAP AG 2001
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AP010
8-1 5
SAP AG
AP010
8-1 6
Exercises
Unit:
1-1
Field Name
Input Data
Order type
OR
Sales organization
2400
Distribution channel
10
Division
00
Input Data
Sold-to party
2402
Group ##
T-F2##
5
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AP010
8-1 7
Field Name
Planning version
Input Data
000
Product
T-F2##
Location
2400
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AP010
8-1 8
Solutions
Unit:
1-1
Input Data
Order type
OR
Sales organization
2400
Distribution channel
10
Division
00
Press Enter
In the sales order screen you enter the following data:
Field Name
Input Data
Sold-to party
2402
Group ##
T-F2##
5
SAP AG
AP010
8-1 9
In the APO system, check the planning situation for the product T-F2## (pump) in
the locations 2400 (Milan), 2500 (Rotterdam) and 2300 (Barcelona).
Production Planning ? Interactive Production Planning ? Product View
Field Name
Planning version
Input Data
000
Product
T-F2##
Location
2400
Then check the planning situation in the locations 2500 and 2300.
SAP AG
AP010
8-2 0
Contents:
? ASAP SCM Implementation Philosophy
? ASAP SCM Methodology
?
Objectives
Deliverables
Tools
? SAP AG 2001
SAP AG
AP010
9-1
Unit Objectives
? SAP AG 2001
SAP AG
AP010
9-2
1 Course Overview
22 Integration and Technology
33 Modelling and Evaluation in APO
4 Demand Planning
55 Supply Network Planning
Production Planning/Detailed
6 Scheduling
7 Transportation Planning
88 Global Available-to-Promise
99 APO SCM Implementation
10
10 Conclusion
? SAP AG 2001
SAP AG
AP010
9-3
A supply-chain diagnostics
approach that will enable SAP to
evaluate a customer's supply
chain, identify significant issues,
estimate benefits that APO could
deliver, and develop a tailored
implementation plan that enables
customers to realize these benefits
in a short period of time
? SAP AG 2001
SAP AG
AP010
9-4
Project
plans
I
1
D
T
S a m p l eS c h e d u l e
No ov v e D mDe bec ec e rJ m Ja ba
n en
F
u
I D TaskName
1
P r o j e cPt r e p a r a t i o n
B u s i n e2s B
s lueprint
rF
ea
eb
r
y
br
M
u M
aa r ar y crA
A hpp
NovemberD e c e m b e
January
r
N o v Dec
Jan
rr
M
l
FebruaryMarch
Feb
Mar
April
Apr
Models
Templates
Questionnaires
How-tos
Case studies
Supply Chain
case studies
May
M a y
June
Jun
Sample
S chedule
ProjectPreparation
S i m u l a t i o Business
n
Blueprint
Validation
4
Simulation
F i n aPl r e5 p a r a t i o n
G Live&S
o
FinalPreparation
upport
Validation
7
8
GoLive
& Support
9
1
8
9
1 0
APO
process flows
APO activity
matrix
Questionnaires
& surveys
R/3 Value
analysis
Analytical
tools
? SAP AG 2001
SAP AG
AP010
9-5
Project
preparation
Business
blueprint
Realization
Final
preparation
Go live and
support
P
1
P
D
3
P
2
ACME
P
4
P
2
P
4
Taiwan
D
2
Manufacturer
Semiconductor
S
1
D
2
S
1
SemiconductorL
Distributor
A aCp M
t oEp
M
4
D
1
Laptop
ACME
A aCp M
L
t oEp
Production
Production
(SanJose)
Distribution
(SanJose)
(SanJose)
S
1
D
1
Supplier
S
1
D 1
Distributor
Laptop
Laeptatoilepr
R
Customers
Customer
Suppliers
Customers
Customers
ACME
SAP Business
Information
Warehouse
SAP Advanced
Planner &
Optimizer
People
Learning
Opportunities
Processes
Innovation
Strategy
Products
Industry Practices
Implementations
Non-R/3
R/3
NonR/3
R/3
? SAP AG 2001
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AP010
9-6
? SAP AG 2001
SAP AG
AP010
9-7
? SAP AG 2001
SAP AG
AP010
9-8
Strategic blueprint
Case studies
Process description
Questionnaires
? SAP AG 2001
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AP010
9-9
? SAP AG 2001
SAP AG
AP010
9-1 0
? SAP AG 2001
SAP AG
AP010
9-1 1
? SAP AG 2001
SAP AG
AP010
9-1 2
? SAP AG 2001
SAP AG
AP010
9-1 3
Conclusion
1 Course Overview
22 Integration and Technology
3 Supply Chain Cockpit
4 Demand Planning
55 Supply Network Planning
Production Planning /
6 Detailed Scheduling
7 Deployment
88 Transportation Planning
99 Global Available-to-Promise
10
10 Conclusion
10
? SAP AG 2001
SAP AG
AP010
10-1
Course Goals
? SAP AG
AG 2001
SAP AG
AP010
10-2
Planning Horizon
Demand Planning (DP)
Deployment
Transportation Planning &
Vehicle Scheduling (TP/VS)
? SAP AG 2001
??APO
SAP AG
AP010
10-3
Location
Future demand
forecast
Product hierarchy
Sold-to party
Sales organization
Region
Incoming orders
?
Quantities
Values
Billing document
?
Quantities
Values
BW
R/3
Excel
Statistical forecasting
Collaborative forecasting
Promotions
Non-SAP system
? SAP AG 2001
??The
APO DP library of statistical forecasting and advanced macro techniques allows you to create
forecasts based on sales history as well as any number of causal factors, and use a consensus -based
approach to consolidate the results.
??Marketing
intelligence and management adjustments can be added by using forecast overrides and
promotions.
??Aggregated
actual data can be extracted from the R/3 system in exactly the same way as it can be
imported from BW, Excel, and legacy systems.
SAP AG
AP010
10-4
Demand Plan
Supplier
Plant
DC
Customer
??The
SAP AG
AP010
10-5
Sales orders
Forecasts
Sales orders
Production Planning /
Detailed Scheduling
? PP/DS planned orders
Forecasts
planned orders
? Purchase requisitions
? Purchase requisitions
? Stock
? Stock transfers
transfers
? PP/DS
? SNP
? Finite,
? Cross-plant
finite planning
? Distribution
and procurement
? Sequences
? Continuous
? Quantity
and order-related
? Pegging
? No
Production
horizon
and bucket-oriented
pegging
Time
? SAP AG 2001
??SNP
??SNP
uses advanced optimization techniques, based on constraints and penalties, to plan product flow
along the supply chain. The result is optimal purchasing, production, and distribution decisions,
reduced order fulfillment times and inventory levels, and improved customer service.
??Pegging
is the link between receipts and issues along the supply chain. When an order is shifted, all
dependent orders can be adjusted automatically.
SAP AG
AP010
10-6
Customer
Resource 2
Resource 1
Resource 3
30
Resource 3
20
Resource 2
Resource 1
10
Time
? SAP AG 2001
(PP/DS) is used mainly for short-term to-theminute planning (both for in-house production and external procurement) in the production plant.
PP/DS schedules and plans all oper ations of an order that are relevant for planning at the different
resources. PP/DS has the following functions:
??It generates planned orders (to plan in-house production), and purchase requisitions or scheduling
agreement schedule lines (to plan external procurement) in the event of product shortage. It uses
simultaneous material and capacity requirements planning to do this: You can define
resources as finite resources (planning-critical resources) in the resource master. Order
operations are only created at these resources if there is sufficient capacity for the order quantity
on the corresponding date. When there is no available capacity, the system searches for a date on
which the order operation can be carried out, taking account of the capacity situation.
??Takes order sequences into account: when new in-house production orders are created, the setup
times in the new order can be determined automatically from the setup status of the resources
(depending on the preceding order).
??It is possible to display the orders in graphic format (in the detailed scheduling planning board),
and to sequence from there. Alternatively you can use the optimizer to execute a sequencing.
??Machine scheduling optimization: during planning, it is possible for orders to be generated that
do not have an optimum order sequence. Therefore, you can change the sequence and resource
assignments of existing orders using the optimization run.
??PP/DS
is a planning tool. Execution functions such as confirmations and goods receipts are
performed in the execution system (for example, R/3). Therefore, the planning results are transferred
to the execution system.
SAP AG
AP010
10-7
Goal:
Deliveries and
transportation orders in R/3
Simultaneous route
and load/weight
planning
Optimizer
TLB orders
Express orders
Vehicle
resources
Selection of
transportation provider
? SAP AG 2001
SAP AG
AP010
10-8
Sales order
R/3
APO
Confirmation
SD
ATP request
ATP
No ATP
Planned orders
Planned
orders
Make
Production Planning/
Detailed Scheduling
MRP
? SAP AG 2001
??Event-driven:
In the R/3 APO interface you can define that the ATP check in the sales order should
not be carried out in R/3 but in APO, as soon as a sales order is created. If you create a sales order in
R/3, the system first checks if there is enough stock available for the requested product. The system
can also check if receipts (for example, production orders and planned orders) have already been
planned by the requested date.
??Time
series: Planned orders and production orders are aggregrated and represented in a time series,
which can be used to evaluate the incoming requests from the sales orders.
??Rules-based
ATP: When there is no availability, you can configure in APO that the system should
carry out the availability check for the product in another location or else for an alternative product.
??Integration
with PP/DS : You can also define that the sales order should trigger production directly
if a product is not available. If it triggers an order for in-house production, APO creates a planned
order for the desired quantity in PP/DS. All of the operations are scheduled on the resources, and the
system takes the capacity restrictions into account (available capacity and orders that may have
already been scheduled). In addition, component availability can be checked. If the capacities are
already exhausted on the desired date, the system uses simultaneous material and capacity
requirements planning to find a date on which the planned order can be created.
The availability date of the newly-created planned order (end date) is returned to the R/3 sales order
and adopted as an internal confirmation date. Using shipment scheduling, the date on which the
product reaches the customer is determined in the sales order. In the R/3 sales order the sales
employee recognizes these proposed delivery dates.
SAP AG
AP010
10-9
SAP AG
AP010
10-10
APS
ATP
BBP
BAPI
BW
CIF
CTM
DC
Distributionszentrum (DZ)
DP
DS
iPPE
LES
KPI
MLR
MRP
Produktionsplanung
PPM
SCC
SCE
SCM
Supply-Chain-Management
SEM
SNP
SOP
TDL
Transportdienstleister
TLB
Vendor -Managed-Inventory
SAP AG
AP010
10-11