Course Objective

Understanding of SAP APO. Understand the underlying components of Demand Planning (DP) & Supply Network Planning (SNP) Provide a high level understanding of the interfaces between DP, SNP

and other APO modules as well as SAP R/3.

SAP APO Architecture

Available To Promise Supply Network Planning

Demand Planning

TPVS

PP/DS

BW

SC Cockpit

liveCache
APO

APO Solvers

Application Link Enabling

Model Generator, Mapping, Connectivity OLTP

R/3

R/3

Legacy OLTP

Non R\3 OLTP

Non R\3 OLTP

APO Applications and Data Flow

R/3

APO

SAP-BW Historical Data Key Perform. Indicators External Data (e.g. POS)

Demand Planning

Sales Orders Manufacturing Execution Inventory Management

Global ATP

Production Planning and detailed Scheduling

Supply Network Planning

Deployment

Integration to APO

Advantages of APO

Master Data versus Transaction Data

Master Data
What is it Static data used during planning Products, Production Lines, Locations

Transaction Data
Data dynamically created through planning and execution Forecasts, Sales orders

Examples

Used for

Mapping organization to the system

Data shared between R/3 and SCM Is shared between SCM components - APO, ICH, EM

Captured information flow

Data created either in planning or execution systems. Planning relevant visible in APO.

Where does it reside

Mapping of Master Data Objects

R/3
R/3 master data
Plant Customer

APO
APO master data
Location Product Resource Production process model Transportation Lane

Vendor
Material master

Work center
Routing and Bill of material Special Procurement Key

Mapping of Transaction Data Objects

R/3
R/3 transaction data
Sales orders

APO
APO transaction data Order category
SalesOrder (BM) FC req. (FA) PurReqs (AG) PlOrd. (AI) Prod Ord (AJ) PchOrd (BF) Stock (CC )

Planned Ind. Reqmts. Purchase requisitions Planned orders Production Orders Purchase Orders Supplies

Models and Planning Versions

Legacy

R/3

OLTP Master Data

APO Master Data (model independent) Planning Model 000

- Master data assigned to model

..

Planning Model n
- Master data assigned to model

Planning Version 000

Planning Version n

Integrated
- version 000 dependent transactional data -version 000 dependent master data

Non-Integrated
- version n dependent transactional data -version n dependent master data

SNP Output

SNP What if output

Planning Books and Data Views

Data views Planning books

Planning areas

Version 000 Model 000

Version A

Version B Model 1

APO master data

APO - Supply Network Planning

Supply Network Planning Scenario

Demand Plan

Supplier

Plant

DC

Customer

SNP plans the material flow along the supply chain Mid- to long-term, finite, cross-plant planning Prioritization of demands; supply optimization Result: Feasible plans
SAP AG 2001

Supply Planning

Objective: To produce effective supply plans which simultaneously reduce costs/assets and improve customer service by dramatically improving the ability to process/incorporate all relevant supply chain information
Production Constraints Lot sizing rules Equipment capacity Labor Supply Chain Cost Info Production cost per location Transportation costs

Demand Forecast Orders

Supply Planning

Optimal Supply Plan

Maximize order fill rates Minimize inventory levels Minimize costs

Material Constraints Material availability Supplier lead times

Distribution Constraints Distribution lead times

The supply plan specifies what to make/move, where to make/move it, how much to make/move and when to make/move it

APO - Supply Network Planning

A planning approach to create tactical plans and sourcing decisions that takes the complete supply network into consideration Model the entire supply network and related constraints Create rough quantity based, cross location production and distribution plan with individual rough bill of material (BOM) and routings Integrate purchasing, manufacturing, distribution and transportation in one consistent model Create feasible plans for purchasing, manufacturing, inventory and transportation Synchronize activities and plan material flow throughout the supply chain

SNP Process
Set up master data Set up supply chain model

SNP configuration
Release demand plan to SNP Release Supply plan Perform SNP Planning Run

Finalize SNP plan

Run Alerts/Check plan Solve problems

Benefits of Supply Network Planning

Multi-site mid-term rough-cut planning Simultaneous material planning and finite capacity planning of production, storage and transportation resources Simultaneous production planning and distribution resource planning Planning of critical components on bottleneck resources Cross-plant optimization of the resource load Prioritization of demand and supply Collaborative procurement planning via the internet

SNP Planning Methods (Solvers)

SNP Heuristics Un-constrained MRP Like Capacity leveling

Production plant Manufacturer DC Customer DC Supplier plant

Supplier Capable to Match (CTM) : Supply to Demand Match WH Feasible solution Matches demand to available supply via production capacity and transportation capability check

SNP Optimization: cost-based optimization Feasible solutions Optimization of production, transportation, and inventory costs

SNP Heuristics

MRP II concept (planning against infinite capacity) Rapid multi-site planning Does not necessarily develop a feasible plan Additional step required for capacity leveling

Capacity load

200 %

100 %

1. Day

2. Day

3. Day

4. Day

5. Day

SNP Optimizer

Optimization
Sourcing Production & Purchasing requirements, Inventory levels Flexible Constraint Definition capacity constraints material constraints transportation constraints . Supply feedback to Demand Planning

Forecasts Customers orders

Control costs Penalty costs

Costs

$
Goal: Minimize costs

Production Transportation Procurement Storage Safety Stock Non-Delivery Delay

Capable to Match (CTM)

CTM is a rules-based, multi-site planning method that takes finite considerations of production resources Extensive prioritization capabilities control the planning process Satisfies prioritized customer requirements with multi-site capacity leveling when there is a capacity overload

SNP Capable To Match (CTM)

Simultaneous material and capacity planning Categorization of demand and prioritization of supply Considers costs Transportation Production Capacity load Considers priorities Product Location Product/Location Transportation Lane 100 % Considers Quotas Rule definition possible

1. Day

2. Day

3. Day

4. Day

5. Day

CTM Planning Scenario

Integration of Supply Network Planning (SNP) with Demand Planning (DP) & Production Planning & Detailed Scheduling (PP/DS)

Sales History

Demand Planning (Batch & Interactive Forecastin g)

Forecast Sales Demand (OLTP) (R3) Stocks

Constrained based SNP plan

Market Info

Supply Network Supply Planning Network Planning (Reads Network Demandfeasible)

Rough Cut Location Procure mnet plan

Release to PP/DS

Rough cut Location Producti on plan

Thank You