Suppl y Chai n Pl anni ng w i t h SAP APOFunctional Solution Management SCM Apri 2010 ©SAP 2008 / Supply Chain Planning with SAP APO / 2 Pai n Poi nt s i n your Gl obal Suppl y Chai n Do you have problems with … Forecast quality? Excess inventory? Lack of visibility in your supply chain? Capacity shortages? Creating an optimized finite production plan? … and therefore face Lost sales due to mi ssing capacity / components or unnecessary production and high i nventory Excessive work-in-capi tal; high scrap/expi ry costs for products with shelf life or short life cycle No systematic consideration of inventory in your supply chain, which results in l ost sales and/or excess inventory Lack of i nformation for right planning decisions High set-up costs/times and low resource utili zation ©SAP 2008 / Supply Chain Planning with SAP APO / 3 Do you t her ef or e need a t ool t o … … increase the visi bil ity in your global supply chain? … improve forecast quality? … systematicall y consi der your inventory and calculate safety stock figures? … optimi ze your short term distribution and transportation pl anning? … support you in creating optimized production plans in all your factories? … improve your sales order entry confirmation and provide reli able sales order confirmation dates? ©SAP 2008 / Supply Chain Planning with SAP APO / 4 Synchronize supply with demand in your global supply chain by balanci ng push and pull network-planni ng processes and by handling replenishment and production based on actual demand. APO DP: Improves the forecast quality and planning accuracy APO SNP: Improves visibility across your global supply chain and lowers inventory APO PP/DS: Supports you in creating optimized production plans APO gATP: Allows state-of-the-art sales order confirmation planning processes APO TP/VS: Optimizes transportation loads and minimizes transportation costs APO Alert Monitor: Powerful exception message system integrated in all APO planning modules Global Available-to-Promise Demand Planning Supply Network Planning Production Planning & Detailed Scheduling Advanced Planning & Optimization A l e r t M o n i t o r Transportation Planning & Vehicle Scheduling How SAP APO i s st r uc t ur ed ©SAP 2008 / Supply Chain Planning with SAP APO / 5 Cust omer s and r el eases SAP APO by t he Number s First release: SAP APO 1.1 (1998) Current release: SAP APO 7.0 (9 th APO release) - part of SAP SCM 7.0 Outlook: Planned next APO shipment: Q4/2009 - Enhancement package 1 for SAP SCM 7.0 (APO 7.01) Active customers: 2000+ Top Industries Adoption: CP, HighTech, Mill, IM&C, Chemicals, Automotive, Life Sciences ©SAP 2008 / Supply Chain Planning with SAP APO / 6 APO DP (Demand Pl anni ng) Comprehensi ve forecasting tool-set Statistical forecasting with causal and time-series methods Selection of best-fit model Automatic outli er detection available Highly configurable planning books wi th macro functionali ty Supporting aggregation / disaggregation logic Lifecycle planni ng Plan promoti ons separately from the rest of your forecast Track & moni tor forecast accuracy Seasonal pl anning Collaborative demand planning Improved forecast qual ity One tool for power and business user Consolidated demand pl an (different regions, countries, departments, …) Key Benefits Features Calculate and determine future demand to improve demand quality and accuracy ©SAP 2008 / Page 7 Constant Exponential smoothing Moving average Weighted moving average Trend Exponential smoothing Linear Regression Season (without trend) Exponential smoothing Trend - Season Exponential smoothing Manual Forecasting Seasonal linear regression Others Croston (sporadic demand) History No Forecast External Forecast Causal Analysi s Multiple Linear Regression (MLR) Influence Variables Climate (e.g. Temperature) Price Advertising Distribution ... A U T O M A T E D P I C K B E S T Composite Forecast Own defined model selection based on error measure Combine different forecasts Weight each forecast (time independent or dynamic) St at i st i c al For ec ast i ng Met hods ©SAP 2008 / Page 8 Demand Pl anni ng Mast er Dat a: Char ac t eri st i c Val ue Combi nat i ons Characteristics Product Location Customer Characteristic values Prod01 Prod02 Prod03 DC01 DC02 DC03 Cust01 Cust02 Cust03 Characteristic value combi nations (CVCs) Prod01, DC01, Cust01 Prod01, DC01, Cust02 Prod01, DC01, Cust03 Prod01, DC02, Cust01 Prod01, DC03, Cust02 Prod01, DC03, Cust03 ……. Planning Object Structure ©SAP 2008 / Supply Chain Planning with SAP APO / 9 Duet Demand Pl anni ng (not par t of APO) Faster and accurate plans aligned to customer demand requirements Leverages the full capabilities of Microsoft Excel (formulae, functions, graphics, etc.) Presents an intuitive interface that requires minimum training Delivers improved user acceptance and productivity through simple and timely access to relevant business information Designed as a composite application based on Enterprise SOA Duet Demand Planning enables managers, sales executives, and planners to utilize the full Microsoft Excel capabilities as an intuitive planning front end for SAP SCM ©SAP 2008 / Supply Chain Planning with SAP APO / 10 Integrate purchasi ng, manufacturing, distribution, and transportation Consider constraints and penalties to plan the product flow along the supply chain Advanced safety stock methods considering mul tilevel supply chai n networks and demand variabil ity Supports system wi de inventory modeling and pl anning Enable planning on different levels of detail (aggregated planning) Choice of heuristic-, rul e- or optimization-based algorithm Increased visibil ity over the overall supply chain Optimi zed sourcing and capacity utilization Reduced inventory levels Improved customer service APO SNP (Suppl y Net w or k Pl anni ng) Key Benefits Features Calculates quantities to be produced and delivered to the locations to match customer demand and maintain desired service levels. ©SAP 2008 / SNP Overview, Dr. Gerald Heisig, 11 Al gor i t hm: SNP Heur i st i c Local DC 30% 70% 40% 60% SNP Heuristic is a heuristic wi thout considering constraints in the supply network. SNP Heuristic does the sourcing based on quota arrangements and priori ties. As additional planni ng step, Capacity Levell ing can be performed in order to resolve capacity overloads. Planned Stock Transfers Planned Production Orders Planned Purchase Requisitions Demands Demands 100% 100% Plant DC Supplier ©SAP 2008 / SNP Overview, Dr. Gerald Heisig, 12 Al gor i t hm: Capabl e-To-Mat c h (CTM) Local DC CTM pl anning uses a constraint-based heuristic planni ng approach for the cross-supply-chain checks of capaciti es as wel l as materi al avai labi li ty. CTM considers predefined supply categories and demand priorities CTM supports characteristic-based planni ng (as of SCM 7.0) Planned Stock Transfers -> Transportation and Handling Capacities -> Quota Arrangements and Procurement Priority Planned Production Orders -> Production Capacities -> Priority of PPM/PDS Planned Purchase Requisitions -> Procurement Priorities Demands -> Priority Classes Demands -> Priority Classes Prio 2 Prio 1 Prio 1 Prio 1 Prio 2 Prio 1 Plant DC Supplier ©SAP 2008 / SNP Overview, Dr. Gerald Heisig, 13 Al gor i t hm: SNP Opt i mi zat i on Local DC $ SNP Optimi zation is a cost-based optimi zation considering all capacity constraints and material availabi lity in the supply network. SNP Optimi zation determines the optimal sol ution based on predefined costs for suppl y alternatives and demands. Planned Stock Transfers -> Transportation and Handling Capacities -> Transportation Cost Planned Production Orders -> Production Capacities -> Production Costs Planned Purchase Requisitions -> Procurement Costs Demands -> Cost for - non deliveries - late deliveries $ $ $ $ $ Plant DC Supplier ©SAP 2008 / SNP Overview, Dr. Gerald Heisig, 14 Di st r i but i on Pl anni ng: Depl oyment and Tr anspor t Load Bui l der Deployment determines the best short-term solution to all ocate availabl e supply to meet demand and to replenish stocking l ocations. Deployment confirms or changes the supply network plan dependi ng and creates a optimized plan for stock transfers The rules-based Deployment Heuristic distributes the products according to quotations and priori ties. The Deployment Optimizer distributes the products according to cost while also consideri ng specific rules. Supply Supply Stock Stock Stock D e m a n d The Transport Load Builder (TLB) groups deployment results for single products (i.e. confirmed stock transport purchase requisitions) to mul ti product stock transport orders. The TLB considers factors li ke volume, wei ght or number of pal lets to fill transport vehicles optimal. Plant DC ©SAP 2007 / PP/DS Overview 15 Oper at i onal Pl anni ng – Pr oduc t i on Pl anni ng and Det ai l ed Sc hedul i ng (PP/DS) Purpose Create procurement proposals Optimize and plan the resource schedule and the order dates/times in detail Plan critical products and bottleneck resources Create executable production plans Benefits: Reduce lead times Increase on-time delivery performance Increase the throughput of products Reduce the stock costs, through better coordination of resources, production, and procurement Optimization integrated into PP/DS ©SAP 2007 / PP/DS Overview 16 APO PP/DS (Pr oduc t i on Pl anni ng & Det ai l ed Sc hedul i ng) Capacity-Load Optimi zation Optimal Sequencing Flexible & Graphical Activity Scheduling What-if Analysis & Simulation Configurable Exception Alert Monitor … Optimal production sequence that is feasible and can be executed. Allows simulation of various planning scenarios to determine optimal schedule. Optimization based on actual constraints ensures rel iable delivery due date promises. Key Benefits Features Multi-level production planning Order Pegging Use existing or own developed heuristics Determines how, when, and where resources and materials should be deployed to accomplish the production goals. Master planning for materials and capacity (resource loads). Key Benefits Features Production Planning delivers a short term plan that matches overall supply to demand, given available resources and production methodology. Detailed Production Scheduling determines optimal production sequence for execution to meet delivery commitments based on actual constraints on the shop floor. ©SAP 2007 / PP/DS Overview 17 Pow er f ul Tool s : Det ai l ed Sc hedul i ng Pl anni ng Boar d Save your own simulation Resource View Product View ©SAP 2007 / PP/DS Overview 18 Feat ur e: Mul t i -l evel pr obl em sol vi ng w i t h or der peggi ng 10 30 30 50 50 80 70 50 50 50 50 50 20 10 40 60 100 100 30 20 50 30 50 20 30 10 20 10 40 50 (+20) (-10) Excess coverage Shortage Delay Sales Order Planned Order Planned Order Pur. Requisition Dependent Req. Dependent Req. ©SAP 2007 / PP/DS Overview 19 Sc r eenshot : Or der c ont ex t (t abl e vi ew ) Demand Which orders cover the demand… ©SAP 2007 / PP/DS Overview 20 Feat ur e: Capac i t y Reser vat i ons Guarantee most profitable capacity utilization Import from SNP optimization result Flexi ble level s of fini te check Release capacity prior to production to fil l total capacity Conversion from time to production unit Example Capacity Reservations for named customers Unreserved capacity everyone can use it Collecti ve reservation not named customers can use it ©SAP 2007 / PP/DS Overview 21 I ndust r y Sol ut i ons IMC and AD: Scheduling for Project Manufacturing Mill and Mining: Block Planning Auto: Model Mix Planning ©SAP 2007 / PP/DS Overview 22 Pr oduc t i on Sc hedul i ng Project Planning Advance Procurement Engineering Engineering Change Management Quality Assurance & Control Manufacturing Execution Shipping, Assembly & Start-Up Production Planning & Optimization Production Scheduling Proj ect Planning Manufacturing Procurement / Warehouse Monitor alerts on projects / main assemblies Pegging – automatic matching of demand and supply Visualization of complete order context Alerts - Early warning system late orders, bottlenecks Filter on alerts in order context, sort late orders by delay Interactive scheduling to reduce late projects, orders Detect critical path for order context Reduce buffers on critical path Reduce duration of project order operations Multi-level forwards/backwards scheduling Interactive scheduling to reduce capacity overload Evaluate resource utilization, filter on overload Alternative work centers, sequences, production versions Switch to external procurement, subcontracting Work overtime, run additional shifts Adaptiveness and Simulation What-if simulation, compare alternatives ©SAP 2007 / PP/DS Overview 23 Bl oc k Pl anni ng (Mi l l and Mi ni ng) Business Requirement Combine optimal resource utilization and precise customer due dates Consider constraints like minimal and maximal lot sizes, setup time, fixed maintenance intervals etc. Plan bottleneck resources in an early planning phase where the final products and product characteristics are not known Solution Define time intervals on a resource where products with certain characteristics can be produced Operations of orders are scheduled into matching blocks 100 to, grade A, grammage 180 120 to, A, 200 75 to, C, 150 Product xy A, 180 Quality S Width 1000 Product vb A, 200 Quality M Width 1200 ©SAP 2007 / PP/DS Overview 24 Orders Line network Model -Mi x Pl anni ng: Si t uat i on Objective Generation of a feasible plan for highly configurable products with high volume Adherence to promised delivery date Position Equal distribution Block X in Y Distance Quantity Business value Balanced usage of production resources Early identification of potential bottlenecks Reliable delivery date leads to increased customer satisfaction Restrictions ©SAP 2007 / PP/DS Overview 25 Model -Mi x -Pl anni ng day x day x+1 day y day 1 Period Slot Sequencing 1 1 2 2 ©SAP 2007 / PP/DS Overview 26 ©SAP 2008 / Page 26 A snapshot of SAP SCM c ust omer s Demand Planning and Supply Planning Supply Network Collaboration Order Fulfillment & Transportation Management Production Planning & Detailed Scheduling ©SAP 2007 / PP/DS Overview 27 SAP SCM Ms. Sher r y Gong sher r
[email protected] om Ms. Fan Li f an.l i @sap.c om w w w.sap.c om/sc m Q & A Thank you f or your i nt er est ! “ This presentation is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document.” www.orbis.de ORBIS Consulting Shanghai ¦+,][||(¸[) ||,) Zao Fong Universe Building, 3D 1800 Zhongshan Xilu 200235 Shanghai Tel.: +86 21 6440 1276 Fax: +86 21 6440 1279 http://www.orbis-china.com.cn André Bohe ORBIS Consulting Shanghai Forecasting and Allocation in Supply-Chains 2 ©ORBIS Consulting Shanghai 2010+4) Forecast and Planning situation SupplyChain Structure Methods / Conflicts 1.a) Definition of Goals and Functionalities in SAP R/3 1.b) Realisation with SAP R/3 2.a) Definition of Goals and Functionalities in SCM-DP 2.b) Realisation with SAP SCM-DP 3.a) Definition of Goals and Functionalities in SCM-SNP 3.b) Current Project Status SAP SCM-SNP 3.c) Next Steps AGENDA 3 ©ORBIS Consulting Shanghai 2010+4) Forecast and Planning Situation 4 ©ORBIS Consulting Shanghai 2010+4) Forecast and Planning Situation – Supply Chain Structure Central Warehouse Production Sites Logistic Center Material Supply Material Supply Sales Orders Sales Orders Cross Company Scenario‘s Cross Client Scenario‘s Demands Demands Situation: - Different SAP Systems with different Clients - more than 100 SAP Locations - more than 10 Non-SAP Locations 5 ©ORBIS Consulting Shanghai 2010+4) Forecast and Planning Situation – Methods/Conflicts Logistic Center With Stock-Responsibility Unreliable Customer Forecasts Min/Max-Levels (not flexible) SaftyStock (not dynamic) Phase-In Phase-Out Priority 1: Demands, coming from Real sales-orders Priority 2: Demands, coming from Min/Max-Triggers Central Warehouse With Stock-Responsibility 6 ©ORBIS Consulting Shanghai 2010+4) Forecast and Planning Situation – Methods/Conflicts Priority 1: Demands, coming from real sales-orders Priority 2: Demands, coming from Min/Max-Triggers Not able to distinguishbetween demands Priorityof own Cust.Demands Calculate own Forecast to Prod. sites Logistic Center With Stock-Responsibility Central Warehouse With Stock-Responsibility 7 ©ORBIS Consulting Shanghai 2010+4) 1.a) Definition of Goals and Functionalities SAP-R/3 8 ©ORBIS Consulting Shanghai 2010+4) Definition of Goals and Functionalities „ Reduce Stocks in Logistic Center by replacing manual Reorderpoint Planning with automatic consumption based forecasting“ Automatic Calculation of consumtion based Forecast-Figures Forecast-Figures and PIRs on weekly basis Consumption of Forecast with Sales Orders Automatic Transfer of Forecast-Figures to MRP Automatic Creation of Transfer P.O.s after MRP 9 ©ORBIS Consulting Shanghai 2010+4) Realisation with SAP R/3 10 ©ORBIS Consulting Shanghai 2010+4) Realisation with SAP R/3 SOP Projects an „Independent Forecast“ by week based on 52 weeks usage history. This forecast is transferred to Demand Mgt. where it is converted into Planned Idependent Requirements Run mass Sales Forecast 16 Weeks forecast for Product-Group Demand Mgt Manages rules for the impacts on “PIRs” and for adjusting “PIRs” accordingly Consumption by Sales Orders Transfer into PIRs for use in MRP-Run MRP Keeps track of impacting transactions and PIR’s. Calculates “Net Requirements” for the Coverage period, based on Demand Management figures. Produces Purchase Requisitions Requirements Listing Run MRP Stock, PIR‘s Sal es Orders, Transfer P.Os Purchase Requisitions Purchasing Purchase Requisition will be automatically converted into Purchase Orders according to replenishment horzion Purchase Orders 11 ©ORBIS Consulting Shanghai 2010+4) Realisation with SAP R/3 Still open Issues No global view on stocks and Planni ng Situation (Cross System, cross Client and Non-SAP Systems) No Alert Functionality for critical Stock-Levels / Stock coverage No possibi lity to track the Requirements (Customer orders / Stock refill ) No automatic mass processing in SOP for new products “ Isolated” Planning of singl e Logistic Centers No Consideration of “ non-working” periods 12 ©ORBIS Consulting Shanghai 2010+4) 2.a) Definition of Goals and Functionalities for SCM-DP 13 ©ORBIS Consulting Shanghai 2010+4) Definition of Goals and Functionalities in SAP-SCM A.) “ Get Global view on stocks and planning situation” Integrate all SAP-Systems/Clients and Non-SAP Systems Define Alert Functionality for Stock-Levels and Stock coverage B.) „ Replace R/3 SOP-Forecast with SCM-DP Forecast and provide Key-Figure for SNP-Planning“ Consider plant holidayin Forecastingmechanism IncludenewProducts automaticallyfor Forecasting Use Phase-In / Phase-Out Functionality 14 ©ORBIS Consulting Shanghai 2010+4) 2.b) Realisation with SAP SCM-DP 15 ©ORBIS Consulting Shanghai 2010+4) 2.b) Realisation with SAP SCM-DP A.) “Get Global view on stocks and planning situation” 1. Definition of Data-Flow model Source-System Level: SAP Systems Non-SAP Systems Source-System Level: SAP Systems Non-SAP Systems DataSourceLevel: Definition of fields andUpload-process DataSourceLevel: Definition of fields andUpload-process Transformation Level: Field-Mapping andRules Transformation Level: Field-Mapping andRules Info-Cube Level Info-Cube Level Info-Cube Level Info-Cube Level 16 ©ORBIS Consulting Shanghai 2010+4) 2.b) Realisation with SAP SCM-DP A.) “Get Global view on stocks and planning situation” 2. Definition of Process-Chains and upload cycles 17 ©ORBIS Consulting Shanghai 2010+4) 2.b) Realisation with SAP SCM-DP A.) “Get Global view on stocks and planning situation” 3. Definition of Tableau Country Prod. Hierarchy Product Location Nav. Attributes 18 ©ORBIS Consulting Shanghai 2010+4) 2.b) Realisation with SAP SCM-DP A.) “Get Global view on stocks and planning situation” 4. Definition of Alert-Monitor and Alert-Handling Mail, tri ggerd by Alert Creati on Alerts, created after Macro-Calculation and Result-Check Alerts, created after Macro-Calculation and Result-Check 19 ©ORBIS Consulting Shanghai 2010+4) 2.b) Realisation with SAP SCM-DP B.) „Replace R/3 SOP-Forecast with SCM-DP Forecast and provide Key-Figure for SNP-Planning“ 1. Enlargement of existing Settings by Forecast Key-Figures and -models InfoArea, InfoObjectCatalog, InfoObject Planning Object Structure Planning Area (expand with Forecast-Figures) Planning Tableau (expand with Forecast-Figures) 2. Creation of Forecast Profile 20 ©ORBIS Consulting Shanghai 2010+4) 2.b) Realisation with SAP SCM-DP Realised Functionalities: BW-functionality to collect data from Non-SAP systems Process chain to define update and upload procedures Global view on Stocks , Stockranges and other Key-Figures (across Clients, across Systems) with Planning Tableau possible Extended Planning structrues and levels (clearly arranged Display of Key- Figures and Graphics) Automatic Integration of new products to be forecasted via Core Interface 21 ©ORBIS Consulting Shanghai 2010+4) 2.b) Realisation with SAP SCM-DP Realised Functionalities: Individual Calculation of Key-Figures with Macro-Technology Automatic Alert-Creation Mail to responsible Person (direct link) More forecasting methods available (e.g. Statistical Forecast, causal analysis, Croston, Holt-Winters) Considering Factory-Calendar in Forecast-Calculation „ Like-Modelling“ in Case of Phase-in /Phase-out Products „SCM-DP is easier to handle more flexible and offers muchmore functions and possibilities comparedto R/3-Functionalities“ 22 ©ORBIS Consulting Shanghai 2010+4) 3.a) Definition of Goals and Functionalities for SCM-SNP 23 ©ORBIS Consulting Shanghai 2010+4) Definition of Goals and Functionalities in SAP-SCM “ Planning of entire Supply-Chain based on DP Forecast Key-Figures with Prioritisation of actual Demands ” „ Calculate and allocate quantities for production plants „ Reduce Costs in entire Supply Chain” 24 ©ORBIS Consulting Shanghai 2010+4) 3.b) Actual Project Status SAP SCM-SNP 25 ©ORBIS Consulting Shanghai 2010+4) Actual Project Status SAP SCM-SNP Planning methods Heuristic CTM Optimization Passes on demand / generates reallocations BOM explosion / generates supply Interactive / local capacity evaluation Infinite planning / (MRPII - approach) Rule-based finite planning of individual needs Integrated finite planning Prioritization of demand and supply (rules) Generates reallocations BOM explosion / generates feasible supply Constraint-based planning Prioritization of demand and supply (costs) Generates reallocations BOM explosion / generates feasible supply Linear programming Decision-Process for CTM or Optimization because Prioritization of Demands necessary 26 ©ORBIS Consulting Shanghai 2010+4) Actual Project Status SAP SCM-SNP Optimization With Optimzier it is only possible run a bucket-basedplanning Character based Optimization is not provided (Variant Configuration) Optimizer does not „know“ Make-to- Order production CTM Decision pro 27 ©ORBIS Consulting Shanghai 2010+4) 3.c) Next Steps 28 ©ORBIS Consulting Shanghai 2010+4) Next Steps To Do: 1. Create Prioritization rules for different demand categories (sales orders; PIRs; Transfer P.o.) 2. Create Prioritization rules in between sales orders (material availability date; delivery priority; recieving location) 3. Definie CTM-Planning Parameter with link of prioritized demands to prioritized receipts 4. Create PP/DS Alerts (Quantity + Scheduling – Alerts) for open demands after CTM-Run 5. Check Possibility to change CTM results with BEx-Analyzer and copy back to SNP-Planningtableau via IP (integrated Planning) 29 ©ORBIS Consulting Shanghai 2010+4) 3 rd SIG Automotive Meeting Thank you for your Attention André Bohe ORBIS Consulting Shanghai Co., Ltd. - ¦+,][||¸[·||,) ZAO FONG Universe Building, Office: 3D No. 1800 Zhongshan Xilu (/Yishan Lu) - ¹¡¯[1800_¸='¸,¸3|D¿ 200235 Shanghai Tel: +86 21 6440 12- 76 Fax: +86 21 6440 12- 79 Mobile: +86 131 2215 2136 Email:
[email protected] www.orbis-china.com.cn