EDW-Enterprise Data Warehouse

ETL- Extracted, Transformed, and Loaded

RDBMSs-Relational Data Base Management systems

IMDB-in memory data base also known as main memory data base (MMDB)-

To make a long story in short, an in-memorydata base is a data base that keeps the whole data base in
RAM.

The advent of In- memory database such as SAP HANA made it possible for product managers to design
an enterprise system that can serve both purpose: transactional Processing and analytical processing –
all in one single database.

OLTP (Online Transaction Processing) - In memory Platform into their Application Landscape

S/4HANA Enterprise Management - The Data base Technology, Business Process improvements, and It
Flexibility-Come together in SAP S/4 HANA.

Deployment Options:

On Premise and various type of cloud deployment

On-Premise-It is the traditional implementation model in which a company own all the software,
hardware, and Network needed to support the organization.

Traditional IT Component: are required including server hardware and software, data backups, storage,
disaster recovery, remote access, and network connectivity.
Clients can’t access their application and data on the fly, anywhere they want or across multiple
platforms.

Cloud: cloud computing service can be private, public or hybrid, and they are divided into three broad
services categories “

1. IaaS: Infrastructure- as- a service( such Virtual machine-VM)

2. PaaS: Platform-as-a-service: providers host )APIs-Application programming Interface), web
portals, or gateways software
3. SaaS: Software-as-a-service(Web Services):user can access SaaS Application and services from
any location using computer or mobile devices that has internet access

SAP HANA Plate Form: The in-memory database with faster access, parallel processing, and compressive
data storage enables analytics on the fly and real- time data processing.

Simplification-The classical G/L isn’t supported and business will have to migrate to the new G/L as part
of the SAP S/4 HANA Upgrade.

Line of Business (LoB): LoBs are the complementary functional solution that is supported by the SAP
HANA platform. SAP S/4 HANA Finance, and SAP S/4 HANA Supply Change are example other SAP S/4
HANA Human Recourses, SAP S/4HANA Sourcing and Procurement, and SAP S/4 HANA Research and
development.

SAP S/4 HANA -1503(Simple Finance)-First SAP HANA –base ERP focused only Finance in 2015

SAP HANA-base public cloud system

On- premise SAP S/4HANA version 1610

Columnar Data

SAP-2009 started, 2015-Simple Finance, 2016- Simple Logistic

Release History-The most notable release being 1511 and 1610

SAP HANA to S/4HANA

Improved Data Quality-

IoT:-Internet of Things,

RFID-Radio Frequency identification

QR Codes: Quick Response Codes
Remove Tcode-

TCode-MB01, MB02, MB03,MB04, MB05,MBOA, MB11, MBA1,MB1C,

MB31,MBN1,MBR1,MBSF,MBSI,MBST and MBSU removed in system.

In future

MKPF and MSEG table have been obsolete. MSEG/MKPF/MCHB/MSSA tables (Approximate 26 tables)
are converted to a single table MATDOC.

Configuration of IM Module has not change much with S/4HANA.The only significant Change for IM
Configuration is its dependency with mandatory changes in the Material Ledger (ML) functionality for
material Valuation. ML is mandatory to support flexible valuation method in multiple currencies.

SAP Fiori Application: to “suit users” preference and roles.

Material Master: No IM-specific material master data simplification changes, the only changes is an
expansion of the material master to 40 characters.

Warehouse- process enabled via SAP Fiori.

Post Goods Receipt: to perform GR, you can use SAP Fiori app (Post Goods Receipt for Purchase Order)
or MIGO
The Message Received when a PO Goods Received is completed correctly.

An additional feature of the SAP Fiori app is the ability to search for Purchase Order Number by
entering the vendor name or other attributes of PO

In the SAP Fiori app, you can enter the vendor name (text), and the system will show all relevant POs.

The Goods Received Location will be proposed based on the master data setup. However, you can
modify the location.

Goods Receipt is evaluated based on the PO price or the invoice price. Goods Receipt posted with the
Blocked stock type won’t be part of valuated stock.

SAP Fiori Apps can’t be used with batch-managed or serial number –managed materials. In this use
you need to leverage MIGO
Valuation:

ML (Material Ledger) become required inventory

Multiple Currency Functionality: Sap Business Suit only one Material Currency, with SAP S/4HANA can
support up to three currencies. Using the parallel valuation functionality, the unique currencies create a
specific valuation view such as company code/ legal valuation, group valuation, or Profit center
valuation.

Locking Optimization:

Exclusive Lock (Early Lock Strategy):

First time Material master Good Movement, All Plant and accounting data tables are locked exclusively
until the goods movement has been fully posted. Another user can’t maintain the material during this
time. This ensures that the Goods Movement is valuated correctly, and that stock quantities and values
are updated correctly.

Late exclusive Lock:

Material is blocked as late as possible only if data is actually saved.

With S/4HANA Leveraging insert –only data base changes in MM-IM data Model, no Exclusive locking is
required for material with price control S & V with all stock types.

Data Model Simplification :(MATDOC)

MKPF/MBLNR (material Document Number)/MJAHR (Fiscal Year)/MSEG Stock Quantities out of 15

tables, 3 were of master data tables with stock quantities. The remaining table are pure aggregate table
I shadowed by history table of stock of previous period.
Reporting on Inventory: Sap Fiori use

Inventory Turnover: Fiori use table format, bubble chart or scatter format.
Material Document Overview app: report can be used based on (stock increase, stock decrease,
transfer posting) stock type, plant, storage location, material, material document year, posting date or
document date. This report doesn’t include movement type.

Material Document List app: mimics of MB51(Item data and header data)

Material Inventory values app: Inventories for a key date, inventory qty and amount in max three
currencies.

View the qty and value sorted by company code, G/L, Profit center, Material group and segment.

Stock Overview app:

1. Stock-Multiple materials
2. Stock- Single material: Specific material and will display stock levels by batch and plant/ storage
location combination
3. Display Stock overview app: very closely resembles to MMBE

Overview Inventory management App: For Inventory Manager provides, stock value, warehouse
throughput history and recent material documents all on one dashboard display.

Slow or non-moving material apps

 Manufacturing

Within SAP S/4HANA, the fundamental Production planning functionality hasn’t changed. SAP S/4HANA
offers enhanced functionality to make the process more robust, and the addition of the SAP Fiori apps
allows for an improved end user experience.

Master Data Functionality

Material Master Format character, structured data on MRP View and production Version for all
produced materials.

Material Master Format: character by default 18 but can be extend to 40

Structured data on MRP View:

MRP1 tab: Lot Size Unit of Measure group has been removed.

MRP2 tab: Quota Arrangement field has been removed as SAP S/4HANA always consider Quota
arrangements active

MRP4 tab: Include the addition of the Repetitive manufacturing/assembly/deployment strategy

grouping.
Following fields have been removed from the MRP Views: Action Console, Fair share Rule, Push
Distribution and Deployment Horizon.

BOM and Production Version: Going Forward, BOM determination can only occur via a valid Production
version.

Customizing for date validity determination is no longer leveraged for the BOM explosion.

The Customizing that determines the item valid for BOM explosion now has the default value of 2
(Version with latest valid-from date).

Production- Define Modification Parameter-Basic Data-Bill of Material-Control Data for Bills of

Material
‘

Work Center:

Today Operation tab: SAP Fiori apps called Work Center: The work center app also provides information
on what operations are schedule for the work center for that day on the today operation tab
Routing: Standard Routing functionality exist via the GUI

MRP

Remove and Interim solution Manufacturing Functionality

Storage location Base MRP isn’t possible in S/4HANA. S/4HANA can plan only Plant and MRP are level.

Net change Planning inside the planning Horizon (NETPL) isn’t available in S/4HANA.
IBP-The functionalities that haven’t been removed but are considered interim solutions Include Logistic
Information System (LIS),Sale & Operation (S&OP), which is replaced with IBP; and forecast –based
planning (MRP type: VV) which is replaced with MRP Type Planning.

Between those scenarios, some are specific to Material Requirements Planning and changes were
made on functionalities that were part of the standard system for a long time.

Some of the most relevant changes are the following:

1 – Simplified sourcing

The source determination carried out by MRP was completely redesigned for internal and external
procurement.

For internal procurement, a BOM selection method is no longer available for selection. Now, the
BOM is always selected according to the production version, therefore, it is mandatory to have a
production version.

For external procurement, the source list is no longer relevant to MRP and it is enough to have a
valid info record, in order to have a vendor selected for a planned order or purchase requisition by
MRP.

With these changes, the source determination on MRP is similar to the source determination on
APO and, according to SAP, unified source of supply model is the basis for future innovations in
sourcing.

2 – Storage location planning

The default option to plan a storage location separately is the storage location MRP area. It means
that the option to define on the material master that a storage location will be planned separately or
excluded from MRP is no longer available.

With the storage location MRP area, there is a separate planning file entry, which means that the
MRP area is planned independently. This is a good thing from a performance point of view, since we
don’t need to plan the entire material just because a change happened on the storage location
planned separately.

Besides that, the storage location planned separately runs a very simple reorder point MRP type,
while the MRP are offers almost the same settings available on the material master.
3 – Subcontracting

Planning of components provided to the vendor must be now carried out with MRP areas. A
separate stock segment for the vendor is not available anymore and the main reason is the
performance. It is also now easier to use subcontracting MRP areas, since we simply need to create
them on customizing and they will be available for all the materials.

4 – Planning file

The old planning file entry tables were replaced by the new table PPH_DBVM, with simplified update
logic, consistency and for update performance.

There is also a new report and transactions to create and check the consistency of the planning file.

MRP Cockpit: SAP Fiori app :-The MRP Cockpit is a series of SAP Fiori apps developed to provide the
planning group with all the relevant information in one convenient location. The MRP cockpit can be
customized for each MRP controller.

Remove- Table SAP aggregation –ROHD & ROIT and MDRI for Performance improve

Simplified Sourcing: Production Version, Delivery Schedule Purchasing Contract and Purchase Info
records.

The Material Master Attribute selection method has been removed (Table MARC-ALTSL)

For Purchased Materials, Functionalities for source list and Quota arrangements have also been
changed. Quota arrangements are always considered, and source List management has been changed.

If a valid Purchasing contract or info record exist, MRP will consider this record even if it is not updated
in the source List.

Manage Material Coverage App( MD04/MD05)

This app is very similar to the traditional MRP Stock requirements List view transaction.

Inventory display in chart format./ Status bar (Red-Yellow-Green)

Material Information tab: shows the inventory position via a Stock Availability status bar (Red-yellow-
Green)
Change Planned Order App: Change the planned order or Firming are available

Display Production Order App –Similar to (CO03)

Monitor Production Order App

Monitor Internal Requirement App: you can ensure that components are available in the right quantity
and in time

Monitor External Requirement App: Monitor the uncovered requirements originating from sale order
and stock transport orders.

Net Segment and Net/ Individual APP: All the planning elements active for that material are summed
and displayed as one total line.

Monitor Material Coverage:.

Display MRP Material Issue: you can view materials which has issue in the last MRP run. This apps what
material were excluded from the planning run. This app also includes the needed information to address
the issue that prevented the item from being planned.
For ERP(EHP7, EHP8) report PPH_MRP_DISPATCHER.
For S/4 HANAPPH_MRP_START is the program for MRP live
Integrated Production Planning and Demand Scheduling: Major advancement in SAP S/4HANA
is the inclusion of the traditional Advanced Planning and Optimization (APO) Production Planning
and Demand Scheduling (PP/DS) functionality. This embedded functionality still requires the Core
Interface (CIF) to send master data to PP/DS., but the transaction data and execution are available
in PP/DS in real time.

Monitor Capacity Utilization: a quick overview of which resources are already being fully utilized or
have a capacity overloaded
Production Scheduling Board: This functionality is planned as the long-term replacement for many
ERP classic planning functionalities.

Demand Driven Replenishment: Provides the ability to classify the product according to demand
history versus traditional forecasting.
Demand-driven replenishment consists of a number of step:
1. Identification and categorization of relevant materials for demand-driven
replenishment: Schedule Product Classification, Mass Maintenance of products, and
schedule Lead Time Classification of Products app.
2. Determination of Buffer stock Levels: Schedule Buffer Proposal Calculation and Manage
Buffer Levels apps
3. Execution of demand driven MRP and review of MRP Result: Using standard MRP
cockpit suite of apps
SAP S/4 HANA Manufacturing for production Engineering and operation (PO&E)

Routing- Shop floor Routing

Enhancement change management-Workflow

Change Record

Hold in Production Order with reason

Work Space in Routing Structure

Component Assignment –MBOM,

Status-Green- Completely Assignment, Yellow-Partly, Blue –Not Assignment

Copy and Paste facility in routing same and different routing

Folder Structure for end User- Operation,

Quantity Split-Higher qty to other operation

Assembly Sequence

MBOM-

Data Collection-work Instruction Link-text

APPs-Work Assignment and My work queue: Production Supervisor and production Operator

List all activities assigned to work center

Documents and attachment

Component assembly sequence, hold and production action Log

Simulation Group

Labor Tracking: Labor on and labor off activities

Defect handling: Creating and Following Up on defects during production or Serial Number

Defect can be created directly from the” Perform operation Activity “app
 Production Execution

Shop Floor Control:

Production Order Confirmation app: Similar to CO11n, Dashboard application for monitoring
production order has been enabled.

Status of the production order or process order

Scrape

Performance Improvement: To speed up the performance of the MRP Run, SAP has removed the
aggregation function traditionally stored in tables ROHO and ROIT and MDRI

S/4HANA Demand Driven MRP (DDMRP)

Functionality
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This blog gives you an understanding of demand-driven MRP and how it works in SAP S/4HANA
environment.

Material requirements planning (MRP) is a well-known planning tool. Material planning is a very
critical and complex process due to complex supply chain networks and it is not easy to fulfill the
requirements based on classical planning all the times.

MRP is a planning tool and available in SAP ERP (ECC) and Advanced Planning Optimization
(APO) interface with Core Interface (CIF). SAP material requirements planning brings efficiency and
optimization to production and procurement plans. Every planner dream to accurately plan materials
timely available across the logistics and entire supply chain. Planner main goal is to ensure that
enough stock available for sale to customers without escalating the inventory carrying cost or facing
a shortage of raw or packing materials needed for production processes.

MRP planning runs generate purchase requisition or planned order is a proposal that a planner can
interactively convert to purchase order or production order for external procurement or in-house
production. SAP MRP creates a planned order or purchase requisitions based on a material’s net
requirement quantity and its needed availability. The net requirement calculation takes into account
existing warehouse stock, the quality of stock, existing or open purchase orders, or production
orders to calculate the material’s shortage quantity. If the system finds that there is a material
shortage, it creates a planned order or purchase requisition for the shortage quantity. MRP is not
restricted to quantity planning it also takes timelines into account, such as the time it takes to
procure a material (known as replenishment lead time or planned delivery time), the time required to
process goods receipt in the warehouse or the quality inspection times (goods receipt processing
time).

SAP Business Suite 4 SAP HANA is a business suite that is built on SAP’s proprietary operational
database system and in-memory computing platform called SAP HANA. SAP S/4HANA is being
called SAP’s biggest update to its ERP strategy and platform in over two decades that means
S/4HANA is just a new transformation to an ERP system.

DDMRP available in the S/4HANA product offering consists of two editions: SAP S/4HANA On-
Premise and SAP S/4HANA Cloud and Integrated Business Planning (IBP). If you look at the high-
level earlier ECC and APO and now S/4HANA and IBP.

Demand Driven Material Requirements Planning (DDMRP) is an innovative multi-echelon pull

methodology to plan inventories and materials. It enables a company to build more closely to actual
market requirements and promotes better and quicker decisions and actions at the planning and
execution level. DDMRP was introduced to the world in the book Orlicky’s Material Requirements
Planning, Third Revised Edition by Carol Ptak and Chad Smith.

I am mainly focused on S/4HANA 1709 on-promise version Demand-Driven Replenishment

process. Demand-Driven Replenishment helps you plan and manage supply chains efficiently based
on customer demand, rather than through traditional MRP procedures. You do this by strategically
decoupling material flows, becoming less vulnerable to disruptions in the supply chain, and by
protecting the flow through dynamically-managed buffer (stock) levels for relevant products.
DDMRP uses strategic decoupling points to drive supply order generation and management
throughout a supply chain.

1. Strategic decoupling: De-coupling the supply chain creates independence between

processes or entities and is the only way to stop the bullwhip effect, mitigate variability and
compress lead times.
2. Buffer sizing: Buffer sizing is the shock absorber to ease both supply and demand
variability and reduce or eliminate the bullwhip effect.
3. Dynamic adjustments: A dynamic adjustment of the buffer profiles further calms the supply
chain and smooths operating for all variabilities within a set period.
4. Demand-driven planning: Demand-driving planning comprises generating supply orders by
evaluating actual inventory, stock that has been ordered but not received, and qualified sales
order demand.
5. Visible and collaborative execution: When users have visibility into inventory through
alerts that track usage, ordering lead times and material delivery can be synchronized.

To implement the DDMRP process following are the two steps.

1. Configuration and setup in fiori applications

2. Operational fiori applications
The first steps to identify the materials which are relevant for DDMRP planning (critical and long lead
time) and update the MRP type D1 (planning procedure C) in material master MRP 1 view.
Schedule Product Classification (DD):

With this app, you can classify your products by systematically evaluating them based on their goods
issue value (ABC classification), usage across BOMs (PQR classification) and variation in actual
demand (XYZ classification) across a specified evaluation interval. Classifying your products will
help identify whether they are relevant for Demand-Driven Replenishment, and will help define
inputs for their buffer settings.

Once the application job opens click on “New” and classifies products and schedule job as below.
After job completed products classified and additional information messages also displayed.
Mass Maintenance of Products (DD)

With this app, you can display and change product details (master data records) relevant to
Demand-Driven Replenishment. After you have classified or re-classified your products, you can
view the results of the classifications in this app, and based on the results, select products that are
relevant to Demand-Driven Replenishment. You can use the mass change feature to change the
master data records for several products simultaneously. This is the second app that you’ll use when
you start with Demand-Driven Replenishment.

Once the application job opens select materials and which you want to do mass change and click on
“Mass change” new popo window displayed and do the changes based on requirement (this step is
optional in this case).

Schedule Lead Time Classification of Products (DD)

With this app, you can classify your Demand-Driven Replenishment-relevant products by evaluating
them based on their Decoupled Lead Time (EFG classification) across a specified evaluation
interval. Classifying your products based on their Decoupled Lead Time (DLT) will help define inputs
for their buffer settings. Additionally, you can schedule runs to re-classify your products periodically
to keep their classifications up-to-date, so that you get accurate results as you proceed with
Demand-Driven Replenishment. This is the third app that you’ll use when you start with Demand-
Driven Replenishment.

Once the application job opens click on “New” and classifies products and schedule job as below.
After job completed products classified and additional information messages also displayed.
Schedule Buffer Proposal Calculation

With this app, you can generate buffer (stock) level proposals for your Demand-Driven
Replenishment-relevant products based on their average daily usage, decoupled lead time, buffer
profiles and several other factors. Additionally, you can schedule runs to re-calculate the buffer
proposals periodically to keep them up-to-date, so that you maintain appropriate levels of inventory
while using Demand-Driven Replenishment. This is the fourth app that you’ll use when you start with
Demand-Driven Replenishment.

Once the application job opens click on “New” and calculates buffers and schedule job as below.
After job completed products buffer calculation completed and additional information messages also
displayed.
Buffer calculation

Buffer (stock) level proposals help you manage the safety stock, reorder point and maximum stock
for your products through the Manage Buffer Levels app. Several factors are taken under
consideration when calculating buffer proposals for your Demand-Driven Replenishment-relevant
products.

A buffer profile is one of the several factors taken under consideration when calculating buffer
proposals for Demand-Driven Replenishment-relevant products.

SAP not provided the standard transaction code to maintain the buffer parameters. You can manage
buffer profiles using the cluster table “PPH_DD_PROFILE_ASG_VC” in SM30 transaction code in
S/4HANA 1709 on-premise version.
Manage Buffer Levels

With this app, you can ensure products are available when needed by managing the safety stock,
reorder point and maximum stock through buffer proposals for optimized Demand-Driven
Replenishment.
Based on Schedule Buffer Proposal Calculation job material R-100-100 Red Zone value 323 PC,
Yello Zone 599 PC and Green Zone 179 PC classified.

Now looking at the R-100-100 detailed analysis.

Buffer zones

Buffer Levels
Average Daily Usage
Decouple Lead Time

Classifications
Stock requirement list (MD04)
Replenishment Planning by Planning Priority

With this app you have an overview of the buffer information sorted by the planning priority. Using
this information, you can trigger replenishment on time to avoid stock shortages and possible delays
in the completion of production or sales orders as a result of insufficient stock.
Replenishment Execution by On-Hand Status

With this app you can view today’s stock situation for each product and check that sufficient on-hand
stock is available for production. Using this information, the planner can try to speed up
replenishment by contacting the supplier of a purchase order or the production supervisor of the
component production order, for example.
What Are the Different Deployment Types in SAP HANA?

There are 3 different types of Deployment options –

 On-premise solution – In this model, the customer purchases software and

hardware; the operations are managed by the customer itself.
 Cloud solution – In this model, the hardware and software is provided by the
cloud solution provider and it is rented to the customer.
 Hybrid solutions – In this model, some part of the software is run by the client
on-premise server owned by the client, and additional solution is provided by the
client provider.

. What is PPDS in SAP?

Production Planning and Detailed Scheduling (PPDS) on SAP S/4HANA is the product
running on SAP S/4HANA. Production planning and detailed scheduling is a tool in APO
(Advanced Planning and Optimization) which takes care of planning and scheduling
considering the capacities of various resources. It includes the data like planning procedure,
horizon, plan explosion etc…