EXPERIENCE YOU CAN TRUST INSIGHTS YOU CAN USE INNOVATION YOU CAN PROFIT FROM

Adaptable Customer Solution

Advanced Simulation
Dr. Mathias Gbelt SAP Consulting

EXPERIENCE YOU CAN TRUST INSIGHTS YOU CAN USE INNOVATION YOU CAN PROFIT FROM

Business Drivers and Challenges Advanced Simulation Approach Advanced Simulation in Detail Value Proposition & Key Differentiators Fact & Figures

EXPERIENCE YOU CAN TRUST INSIGHTS YOU CAN USE INNOVATION YOU CAN PROFIT FROM

Business Drivers and Challenges Advanced Simulation Approach Advanced Simulation in Detail Value Proposition & Key Differentiators

Fact & Figures

Typical Customer Challenges

SAP Advanced Simulation helps customers facing
a highly sophisticated supply chain with the need to adjust to ever-changing market conditions

the need to reliably deliver to customers with diversified demands on a timely basis
competition that demands you continuously optimize your supply chain effectiveness limited forward visibility into the effects of supply chain adjustments

Consider implementing a tool to simulate and compare the impacts of changes to your supply chain.

SAP AG 2006, Advanced Simulation / 4

Value to You
INCREASED CUSTOMER SATISFACTION

Increase your service level by having the right product in the right location at the right time Make business decisions founded on a solid understanding of your supply chain alternatives and improved forward visibility of their effects Determine the best inventory level by considering different inventory strategies and demand scenarios

SOLID DECISION MAKING

OPTIMIZED INVENTORY LEVEL

REDUCED SUPPLY CHAIN DISRUPTIONS

Reduce disruptions to your supply chain based on comprehensive visibility of future requirements

Resulting in REDUCED OVERALL COST and an INCREASED SERVICE LEVEL for your customers

SAP AG 2006, Advanced Simulation / 5

EXPERIENCE YOU CAN TRUST INSIGHTS YOU CAN USE INNOVATION YOU CAN PROFIT FROM

Business Drivers and Challenges Advanced Simulation Approach Advanced Simulation in Detail Value Proposition & Key Differentiators

Fact & Figures

Advanced Simulation Solution Approach

Advanced Simulation enables you to simulate and store multiple supply chain optimization scenarios and to analyze and compare their results

Select the supply chain scenario you wish to use as the basis for simulation

Create simulation scenarios for your supply chain by changing elements such as your

Forecast and sales order demand Safety stock requirements

Products, production plants/DCs or resources

Supply Chain cost

Optimize each scenario to understand the effects of the changes Display and compare the optimized scenarios as a basis for your business decisions

SAP AG 2006, Advanced Simulation / 7

EXPERIENCE YOU CAN TRUST INSIGHTS YOU CAN USE INNOVATION YOU CAN PROFIT FROM

Business Drivers and Challenges Advanced Simulation Approach Advanced Simulation in Detail Value Proposition & Key Differentiators

Fact & Figures

EXPERIENCE YOU CAN TRUST INSIGHTS YOU CAN USE INNOVATION YOU CAN PROFIT FROM

Business Drivers and Challenges Advanced Simulation Approach Advanced Simulation in Detail Capabilities & Scenarios Example: Typical Simulation Process

System Demo / Screen Cam

Value Proposition & Key Differentiators Fact & Figures

Advanced Simulation Capability Overview

Advanced Planning enables you to run and store multiple simulation runs with varying master and transactional data and to compare and analyze the results
Simulation functionality includes creation, copy, modification, deletion and mass-change of master and transaction data
Dependent

data is in most cases automatically created, deleted or

changed No restrictions for master data simulation

Simulation does not affect the active model or any other simulation in progress Simulation can be run for the complete model or parts thereof Analysis and comparison of results in the SAP Business Information Warehouse or APO BW Simulation does not cause additional LiveCache load
Simulation

scenarios stored in database

Advanced Simulation is based on Supply Network Planning (SNP) Optimization

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Advanced Simulation Capability Overview (contd)

Snapshot of master data and transaction data

Simulate: Add, change or delete master data and/or transaction data

Simulate optimization run by considering the simulated changes

Transfer to My SAP BW for what-if analysis

New Buttons

Activate the best plan by changing active master data and transaction data according to the simulation.

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Capabilities in Detail
Master Data Simulation Capabilities
Add / copy / modify / delete functionality for
Locations

(e.g. plants, DCs, customers)

Location copy allows to copy all dependent data (e.g. products, resources,

PDS/PPMs) Location deletion automatically removes all dependent data

Products
Product copy allow to copy dependent data (e.g. cost, safety stock

requirements, demand) Product deletion automatically removes all dependent data

Transportation

lanes

Transportation lane copy allows to copy assigned lane products Transportation lane deletion automatically removes all dependent data

Resources

(production, transportation, handling, storage)

Resource copy copies resource calendars, capacity variants and profiles Resource deletion automatically removes all dependent data

Production

Data Structures (PDS) / Production Process Models

(PPM)
Product

Interchangeability

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Capabilities in Detail (contd)

Transactional / Time Series Data Simulation Capabilities
Add / copy / modify / delete functionality for
Demand Safety

(e.g. forecast, sales orders) limits

Stock / Safety days supply

Procurement Fixed

Receipts

Mass Change Functionality for

Products
Transportation lanes Resources Production Data Structures / Production Process Models

Demand

SAP AG 2006, Advanced Simulation / 13

Capabilities in Detail (contd)

Result Analysis / Comparison Functionality
Result logs and tables in APO
Using

enhanced SNP Optimization log transaction (SCM 4.1)

KPI calculation in APO (SCM 5.0)

Transfer of results to BW Comparison reports and KPI calculation in BW
Standard

comparison reports can be enhanced by customer-specific reports and calculations

Tracking of Data Modification

Change log captures all changes to master and transactional data

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Business Scenario: Sales and Operations Planning (S&OP)

Strategic Planning
Market planning New product planning Resource Planning

Demand Planning
Quantitative Forecasting Sales, Marketing Input Demand Balancing

Supply Planning
Capacity Planning Inventory Planning Procurement Planning Logistics

Supply & Demand Balancing

Product Mix Constraint Management Allocation Demand to Supply

Management Evaluation & Analytics

KPI Measurement Plan vs. Actual Forecast error Margin Management Root Cause Analysis

Sales & Operations Planning

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S&OP: Strategic Planning

Strategic Planning Tasks
Market Planning Resource Planning

New Product Planning

Advanced Simulation support for Strategic Planning tasks

Add / copy / delete locations (e.g. distribution centers and plants) Add / copy / delete resources (and corresponding PPMs/PDS) Modify resource capacity Add / copy /delete products Modify demand Create interchangeability rules

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S&OP: Supply Planning

Supply Planning Tasks
Capacity Planning Inventory Planning Procurement Planning Logistics Planning

Advanced Simulation support for Strategic Planning tasks

Modify resource capacities & calendars Set resources to finite or infinite capacity

Modify capacity utilization cost

Modify safety stock / safety days supply Modify maximum stock levels Modify storage cost / safety stock penalty Enable / disable external procurement Modify procurement costs and procurement limits Add / modify means of transport Modify transportation cost

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S&OP: Supply and Demand Balancing

Supply and Demand Balancing Tasks
Product Mix Constraint Management

Allocation Demand to Supply

Advanced Simulation support for Strategic Planning tasks

Add / copy / delete products Modify demand and safety stock Modify production and procurement costs Activate / deactivate capacity constraints Modify capacity constraints

Add / modify / delete resources

Modify demand Modify non-delivery and late delivery penalties

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S&OP: S&OP Meeting Evaluation and Analysis

Evaluation and Analysis Tasks
KPI Measurement Plan vs. Actual

Forecast error
Margin Management Root Cause Analysis

Advanced Simulation support for Evaluation and Analysis tasks

KPI Calculation for simulation scenarios Comparison reports Compare margin calculations across simulated scenarios Result logs and comparison reports

SAP AG 2006, Advanced Simulation / 19

EXPERIENCE YOU CAN TRUST INSIGHTS YOU CAN USE INNOVATION YOU CAN PROFIT FROM

Business Drivers and Challenges Advanced Simulation Server Approach Advanced Simulation Server in Detail Capabilities & Scenarios

Example: Typical Simulation Process System Demo / Screen Cam

Value Proposition & Key Differentiators Fact & Figures

Advanced Simulation Process Step 1

Run SNP Optimization in active or simulation version to generate reference data set

Logs generated after standard optimization run

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Advanced Simulation Process Step 2

Copy reference data set log to advanced simulation scenario
Select reference run and execute copy

Assign name and description to simulation scenario

New scenario with 1:1 copy of reference input data

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Advanced Simulation Process Step 3

Change master / transaction data to create required scenario

Mass change option available

Any master/transaction data can be created and/or copied modified deleted

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Advanced Simulation Process Step 3 Details 1

Master Data Simulation Options
Data Product
a) b) c) d)

Option
Create by copying reference product (with all dependent data) Delete location product or entire product (with all dependent data) Mass change of product attributes Modification of product attributes

Location

a) b) c) d)
a) b) c) d) e)

Create location Copy existing location (with all dependent data) Delete location (with all dependant data) Modification of location attributes
Create PPM (with resource consumption and material flow data) Copy existing PPM (with all dependent data) Delete PPM (with all dependent data) Mass change of PPM attributes Modification of PPM attributes

PPM

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Advanced Simulation Process Step 3 Details 2

Master Data Simulation Options
Data Resource Option
a) Create a resource (production resource, storage resource, transportation resource and handling resource) b) Copy resource (production and transportation resource) c) Delete resource (with all dependent data) d) Modification of resource a) Copy existing transportation lane (with all dependent data including lane products) b) Delete lane product or entire transportation lane (with all dependent data) c) Mass change of lane attributes d) Modification of transportation lane attributes a) Create product interchangeability rule b) Delete product interchangeability rule

Transportation lane

Product Interchangeability

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Advanced Simulation Process Step 3 Details 3

Transactional Data Simulation Options
Data Demand
a) b) c) d)

Option
Create/Mass Create demand Delete demand Mass change of demand Modification of demand attributes

Location material

a) Delete location material data b) Mass change of location material data c) Modification of location material attributes
a) Create procurement data b) Delete procurement data c) Modification of procurement data attributes

Procurement limits

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Advanced Simulation Process Step 3 Details 4

Master Data : Product
Delete Location product or the entire product

Copy product to particular location or to all locations

Mass change allows to change attributes for range of Products which can be restricted using selection criteria
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Product attributes like Procurement cost, Safety stock, Penalty, etc can be changed

Advanced Simulation Process Step 4

Perform Advanced Optimization Simulation Run
Select modified scenario and run advanced simulation run

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Advanced Simulation Process Step 5

Analyse advanced optimization results using optimization result log display in APO

Additional Result Log Tables Product view Capacity view

Repeat steps 2 5 to create additional scenarios (as required)

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Advanced Simulation Process Step 6

Transfer advanced optimizer run to BW

Select advanced optimizer run and transfer to BW

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Advanced Simulation Process Step 7 - 9

7: Compare selected advanced simulation runs in BW
Scheduled transfer of selected advanced optimization runs possible
Avoid

additional load on APO / BW servers during working hours view view

Comparison reports for

Product Capacity

8: Select most suitable scenario

9: Implement changes to actual master/transaction data

Supported by change log which captures all changes

SAP AG 2006, Advanced Simulation / 31

EXPERIENCE YOU CAN TRUST INSIGHTS YOU CAN USE INNOVATION YOU CAN PROFIT FROM

Business Drivers and Challenges Advanced Simulation Approach Advanced Simulation in Detail Capabilities & Scenarios Example: Typical Simulation Process System Demo / Screen Cam Value Proposition & Key Differentiators Fact & Figures

Demo

Demo

SAP AG 2006, Advanced Simulation / 33

EXPERIENCE YOU CAN TRUST INSIGHTS YOU CAN USE INNOVATION YOU CAN PROFIT FROM

Business Drivers and Challenges Advanced Simulation Approach Advanced Simulation in Detail Value Proposition & Key Differentiators

Fact & Figures

Benefits of SAP Advanced Simulation

COMPREHENSIVE Enables simulation for all master data objects, SIMULATION including planning version- and model-independent CAPABILITIES data, and all transactional data

REDUCES Simulation scenarios stored in database, no LIVECACHE LOAD additional LiveCache load

AUTONOMOUS Simulation data fully independent of active model SIMULATION DATA data and other simulation data sets

ANALYSIS AND COMPARISON OPTIONS

Analysis and comparison of results in APO, Business Information Warehouse or APO BW SNP Optimization offers comprehensive functionality to generate feasible plans for a multitude of supply chain scenarios

BASED ON SNP OPTIMIZATION

SAP AG 2006, Advanced Simulation / 35

Success at Kimberly-Clark

With Advanced Simulation, we are able to easily simulate possible bottlenecks in our overall logistics planning; allowing for quicker and more strategic decisions on potential investments, new or improved processes, and resource alternatives.

SAPs Advanced Simulation solution provided us with the right tools to easily compare alternate planning scenarios and choose the best solution.

Greg Schroeder Project Manager

SAP AG 2006, Advanced Simulation / 36

EXPERIENCE YOU CAN TRUST INSIGHTS YOU CAN USE INNOVATION YOU CAN PROFIT FROM

Business Drivers and Challenges Advanced Simulation Approach Advanced Simulation in Detail Value Proposition & Key Differentiators Fact & Figures

System Landscape of SAP Advanced Simulation

Technical Prerequisites for SAP Advanced Simulation

SAP SCM system:

SCM 4.1 or higher
SCM 4.0 implementations possible with additional effort

SNP Optimization used a planning engine Use of internal APO BW or external BIW No other prerequisites

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To Learn More
To find us on the web:
SAP Service Marketplace: http://service.sap.com/customdev

For quick access to the product brochure:

To contact us personally:
Arnold Heinz Mail: arnold.heinz@sap.com

SAP AG 2006, Advanced Simulation / 39