CASE STUDY

Executive SummaryThe supply planning process for Advanced Memory Manufacturer includes master planning, subcontract planning and purchasing team. Supply planning will be conducted for short to medium term for 0 – 6 months. The supply plan includes finished goods, semi-finished / component, and raw materials, Supply planning is mainly carried using Capable to Match (CTM) tool with in Supply Network Planning (SNP) and non-critical raw materials are planned using Materials Requirements Planning (MRP) and Long Term Planning (LTP) in Enterprise Central Component (ECC). Supply planning results are transferred to Business Warehouse (BW) and ProClarity for reporting.

Supply planning is carried out once a week on Tuesday evening in simulation version using CTM for 6 months. Supply planning is capacity, component and critical raw material constraint. CTM prioritizes the demand based on types of demand and delivery date. After CTM planning data is transferred from APO to Business Warehouse (BW) and to ProClarity. Supply planning results are transferred from simulation version to active version once a week and any adjustments required for supply planning will be carried out at the same time.

Supply Planning results are used for executing the in-house manufacturing, subcontract, component and raw material planning.

Master Data, Stock and Execution data are transferred from ECC to APO. Execution data is maintained for Advanced Memory Manufacturer in a legacy system and subcontract manufactured data in Serus a third party system. All data is transferred from ECC to APO using a Core Inter Face (CIF). CTM created planned orders and purchase requisitions are transferred from APO to ECC using CIF.

www.hcltech.com

Multilevel Supply Planning and Capable-to-Promise for an advanced memory manufacturer

CASE STUDY

Client BusinessAdvanced Memory Manufacturer Technology designs and builds some of the world’s most advanced memory and semiconductor technologies for Products from computing, networking, and server applications, to mobile, embedded, consumer, automotive, and industrial designs

Business Need• Integrate supply planning with ECC for master data like

– Locations (Plants and Vendors)

– Products

– BOM

– Work Centers

– Routing

• Supply planning should support product can be manufactured in multiple Advanced Memory Manufacturer locations and subcontract vendor locations based on priority and quota

• Supply planning to support time phased BOM and Routing

• Integrate the supply planning system to multiple systems like to get execution data

– Legacy system- to get real time manufacturing data for in house manufactured products

– Serus – to get real time manufacturing data for subcontract vendor manufactured data

– LPI – to get component availability after 6+ months

• Integrate supply planning system to demand planning system to get forecast

• Integrate supply planning system to global Available To Promise (GATP) system to provide statement of supply to commit sales order to the customer

• Integrate supply planning system to BW and ProClarity system for reporting

• Run supply planning engine in simulation version to keep minimum interruption to GATP order confirmation process

• Publish the supply planning results from simulation version to active version before work day starts in Asia on Friday

• Supply planning engine should support multi-level BOM’s and routing.

• Supply planning engine to support following planning runs

– Capacity, Component and critical raw material feasible plan for execution plan

– Capacity feasible plan for non-critical raw material planning

– Unconstraint plan for component and long term capacity planning

– Run what-if planning varying capacity, component and master data

Solution Elements• SAP APO SNP (Supply Planning)

• SAP ECC (ERP)

• SAP APO DP (Demand Planning)

CASE STUDY

• Legacy system for in house WIP

• Serus third party system for Subcontractor location WIP

• Available to Promise using GATP (Global Available to Promise)

Outcome• Executable supply plan for manufacturing, subcontracting, and purchasing

• Commit sales orders based on realistic supply plan

• Integration with demand plan

• Integration with execution systems

• Integration with ECC for master and transaction data

• Minimum interruption for customer order creation due to planning in simulation version

• Capability for what-if analysis based on capacity, component and master data

• Improved data integrity and accuracy between the planning system, execution system and reporting system

Unique Proposition

Knowledge of semi-conductor business

Opportunity/ Challenge(Business impact, users, customers, vendors impacted)

• No integrated statement of supply produced for manufacturing planning but available thru multiple other formats and sources

• No optimized supply plan considering alternate sources of Supply

• Less visibility to capacity utilization on critical resources to enable better capacity planning

• No real time order commits possible since the supply plan is not complete taking into account the finished goods and component inventory both in house and subcontracted

• No ability to perform capacity and optimize supply plan thru simulations. Currently takes more time and manual effort to re-adjust the supply plan and capacity due to long wait times of MPS runs

• Limited ability to perform long term capacity planning by comparing constrained and infinite capacity based planning runs

Technical Design(design elements, architectural elements)

• Supply planning in multiple locations and subcontract vendor locations based on priority and quota

• Integrate the supply planning system to multiple systems to get execution data

– Legacy system to get real time manufacturing data for in house products

– Serus to get real time manufacturing data for subcontracted products

– LPI to get component availability for next 6 months

• Integrated with demand planning system to get forecast

• Integrated with global Available To Promise (GATP) system to provide statement of supply to commit sales order to the customer

• Integrated with BW and ProClarity system for reporting

• Run supply planning engine in simulation version to keep minimum interruption to GATP order confirmation process

• Publish the supply planning results from simulation version to active version before work day starts in Asia on Friday

• Support multi-level BOM’s and routing.

• Supply planning engine supports the following runs

– Capacity, Component and critical raw material feasible plan for execution

– Capacity feasible plan for non-critical raw material planning

– Unconstrained Supply plan for component and long term capacity planning

– What-if scenario planning based on varying capacity, component and master data

Order Commits

WIP (Subcon)

WIP

(In-h

ouse

Mfg

)

Master Data Stock/ WIPSAP ECC

(MRP & LRP)

Legacy System

Serus(3rd party sys)

APO SNP(CTM)

Supply Plan(Finished Goods,

Components, Critical Raw Mtls)

Plnd Orders/ P. Reqs

SAP BW

APO DP(Forecast)

Supply Plan(Non-Critical Raw Mtls)

Long Range Supply Plan >

6months

ProClarity

Reports

GATP

Hello there! I am an Ideapreneur. I believe that sustainable business outcomes are driven by relationships nurtured through values like trust, transparency and flexibility. I respect the contract, but believe in going beyond through collaboration, applied innovation and new generation partnership models that put your interest above everything else. Right now 100,000 Ideapreneurs are in a Relationship Beyond the Contract™ with 500 customers in 31 countries. How can I help you?

Contact: iSCM@hcl.com