Upgrade from 5.0 to 7 - SAPfm.sap.com/data/UPLOAD/files/D2 04 - APO 5-7 Update-FINAL.pdf · Run & adjust forecast in interactive planning ... Interchangeability Master Data can be

SCM CVN Event - Philadelphia

APO – Upgrade from 5.0 to 7.0

Eric Simonson – SCM Solution Management

July20, 2011

© 2010 SAP AG. All rights reserved. / Page 2

APO – Differences between 5.0 to 7.01. Demand Planning2. Supply Network Planning3. Production Planning Detailed Scheduling4. Global Available to Promise

Agenda


Continuous Innovation Around a Stable Core

Stable core defined to be SAP ERP 6.0 today, extended to core applications of SAP Business Suite in 2008

Leverage proven functionality

Continuous innovation delivery via enhancement packages, selectively adoptable

Continuous service enablement

Uniform availability of industry best practicesStable Core

(SAP enhancement package 1 for)SAP NetWeaver 7.0(as foundation for SAP Business Suite)

SAP Business Suite

ERP 6.0

CRM7.0

PLM7.0

SCM7.0

SRM7.0

Industries

SAP Enhancement Packages for Applications


Demand Planning Enhancements – SCM 2007 (5.1)

DP Interactive Planning – Ease of UseDisplay a chart in a popup window only showing the values selected by a userNew context menu calculation functionalities: Maximum, Minimum, Count, User-defined BAdI Enhanced Chart Engine (SNP also): Generate graphics content with new framework and well defined XML interface. Use higher flexibility in customizing and capability of displaying more chart types

Management of obsolete (and delete) characteristic value combinations (CVC) CVC doesn’t have master data (master data: product and location including items which are marked for deletion) CVC doesn’t have planning data (no planning data in LiveCache)


Demand Planning Enhancements – SCM 2007 (5.1)

Maintain Selection Organization (/sapapo/mc77)Button to create a Selection Variant shall display the shuffler window in order to use the interactive selection functionalityShuffler window shall be adjusted to keep the previous condition selection when the “Show property” is changedMass Maintenance for Selection Variants – Planning Book selector dropdown listCopy Selection Variants assignment from one user to another


Demand Planning Enhancements – SCM 7.0

Forecasting Enhancement “MLR with POS”Improved demand visibility and response leads to higher forecast accuracyExact Method

Using detailed POS data (e.g. by store/sku/day) to create a store level POS forecast and include replenishment parameters to calculate impact on manufacturer supply chain

Highest benefit potential, but time & resource-intensive – CPU & user

Qualitative MethodInclude POS data in existing processes with no or marginal process extension

benefit potential maybe not be as high as exact methods, but faster and easier to implement – “low hanging fruit“

Combines statistical forecasting with causal analysisCalculates fluctuation due to inventory in the retail supply chain (which is not visible to the manufacturer)Works with Life Cycle PlanningUI adjustment for the end user to set up the forecasting method as well as changing parameters in interactive planningHas its own new alerts: Diagnosis group using MAPE

Insufficient data to execute algorithm

MAPE upper limit exceeded

Calculated MAPE greater than statistical forecast MAPE


Forecast in Interactive Planning

Run & adjust forecast in interactive planning

Key figures:Forecast Shipment historyPOS history Statistical forecast Inventory flux

Adjust forecast parameters in interactive planning on the fly:

Forecast / history horizon or number of periodsStatistical forecast model & smoothing factorsKey Figure & versionOther parameters

View messages


Demand Planning Enhancements – SCM 7.0 Continued

Statistical Forecast Enhancement – Re-Initialization & Trend Dampening

Introduce new means of limiting or dampening the trend while also providing a means to make more generally applicable settings

use a trend dampening profile

set an upper limit for the trend value

set an upper limit for the forecast

use the trend dampening factor Phi (applicable only for exponential smoothing methods)

Improve reaction of exponential smoothing methods (for certain smoothing parameters) to structural changes in the data by re-initialization.

A structural change is detected in the historical data by means of 2 measures: Tracking Signal (TS) & Normalized Error (NE)

When the structural change was identified the forecast parameters (basic value, trend value, seasonal indices) are reinitialized from the historical values of the period that was processed and the periods that follow

Offer new BAdI method for additional white noise test calculationNew white noise test is based on the Box-Pierce test

Method= /SAPAPO/SCM_FCSTPARA -> WHITE_NOISE_TEST


Structural change in history

Structural change


Demand Planning Enhancements – SCM 7.0 Continued

Customer Forecast Management

Objective of new developmentIntegrate customer forecast to APO Demand Planning

Use customer forecast to shape demand

Receive and analyze customer forecasts (readiness, completeness of data)

Check tolerances to compare different versions of customer forecasts

Provide waterfall analysis of customer forecast

Powerful customer forecast analysis dashboard

Intercept customer forecast and analyze tolerances, readiness and completeness of data

Functional EnhancementsFlexible BI structures to store incoming forecast data

New IDOC functionality for IDOC types “DELFOR” / “PROACT”

Customizable settings for analyzing customer forecast data

Forecast analysis process run

Waterfall analysis in structured excel format


Customer Forecast Analysis Dashboard

View customer forecast data grouped according to alerts generated during the forecast analysis runYou can filter the forecasts, change predefined queries or create new ones, and you can also personalize the table for displaying the results of the query.

Forecast not received per expected frequency

Forecast duration not for entire expected horizon

New Forecast exceeds specified tolerance limits

New Forecast Received; Requires mandatory manual review/approvalUse:

Netweaver Business ClientInternet Browser


CFM Dashboard - Detailed View

Per profile– Comparison of new customer forecast with last customer forecast

Per profile– Comparison of new customer forecast with new adjusted forecast

Adjust Customer Forecast as needed

Approve and release for downstream planning

Make the necessary adjustments to the data, creating adjusted customer forecasts.Release the data to Demand Planning by approving the data on the Customer Forecast Management overview or detail screen.


APO – Differences between 5.0 to 7.01. Demand Planning2. Supply Network Planning3. Production Planning Detailed Scheduling4. Global Available to Promise

Agenda


Supply Network Planning Enhancements –SCM 2007 (5.1)

Profitability Driven Supply Chain PlanningSNP Optimizer can consider penalty groups to prioritize customers or customer segmentsOptimizer can consider quantity based penalty costs to prioritize larger ordersLayered SNP Optimization to sequentially plan customer segments according to their importanceUse Set-up Matrix in SNP optimization to optimize block scheduleDisplay of sequence information in SNP interactive planning to evaluate optimization resultCreate Capacity Reservation proposal from SNP to ensure most profitable capacity utilizationGenerate block proposal from SNP to minimize set-up costs and define most profitable production schedule

Shelf Life in SNPDisplay shelf life data of demands, receipts, stocks, and expiring/wasted goods and shelf life based stock balancePropagate shelf life data of demands (for example: customer orders) across the supply chainGenerate alerts for goods that will expire or for shelf life mismatches between demands and stocksIntegrate shelf life data of purchase requisition to ERP (*) for further processes in ERP (purchase order, batch determination for delivery creation)

*Prerequisite: SAP ECC 6.0 EhP03


Profitability Driven Supply Chain Planning screen shots


Supply Network Planning Enhancements –SCM 2007 (5.1) Continued

Subcontracting EnhancementsSubcontract information record allows several production versions to be defined per subcontract vendor/material relationship, ensuring an efficient utilization of existing capacities (*)

Planning of the subcontractor production lines

Planning which bill of material will be used for the subcontract build

Consider preferred subcontractor production lines by priorities or costs depending on the planning algorithm usedEnable planners to perform manual adjustments and create subcontract purchase requisitions manually to incorporate any new information into the planning resultsEnable a seamless integration with R/3 (*)

Capable to Match EnhancementsSupply Distribution: Incorporated (before or after) into CTM planning run. One level push of surplus supply happens according to the outbound quota. Lot sizes as well as transportation and handling resources are now considered during the supply distributionMinimum Production Quantity: In order to utilize given capacities a minimum level of production is necessary. Production orders are created even if there is no real demand

In Interactive Planning minimum build quantities are defined as time series key figure on location product level

CTM engine can now also be used with Linux platform with similar performance and memory consumption as windows server

*Prerequisite: SAP ECC 6.0



Optimization EnhancementsQuota Arrangements: SNP Optimization respects time-dependent inbound quota arrangements on procurements from source locations, external suppliers and in-house productionReceipts Bounds: SNP Optimization respects limits (lower and upper bounds) on TOTAL RECEIPTS of location products. Mass maintenance: /SAPAPO/TSKEYFMAINSNP Optimizer engine can now also be used with Linux platform with similar performance and memory consumption as windows server




SNP InterchangeabilityInterchangeability Master Data can be transferred from SAP ERP (*) system

Single discontinued part from Material Master in ERP with Effective-Out Date & Follow-up material defined. Create integration model with simple discontinuation active.

Stock is forwarded over the whole supersession groupAlgorithm for forwarding stock using Form–Fit–Function (FFF) classes is enhancedConsideration of Interchangeability rules at target locationHeuristic and optimization based Deployment consider interchangeability of products

Supports Fair Share Rule A (Prop. Based upon Demands)Visualization of the results created by deployment: New key figures for confirmed substitution demand and receipts are introducedBADIs are introduced to control how existing stock is used up and to control handling of horizons



Interchangeability within SAP APO Modules

SAP APO Application DP SNP Deploy-

ment CTM PPDS GATP

Discontinuation (forward) X X X X X X

Supersession(full) X X X X

FFF classes X X X X

The table gives a brief overview of which interchangeability scenarios are compatible with which SAP APO application.

In the individual applications there are some restrictions on using product interchangeability and other functions.


Supply Network Planning Enhancements –SCM 7.0

Low Level Code DeterminationObjective: To enhance the usability of the low level code (LLC) determination for the SNP heuristic planning & to improve the performance of the SNP interactive and background planningEnable LLC determination for selected Master Data in case of Supply Network Planning (SNP)LLC determination for SNP is integrated to the Process Chain ToolProvision of Information regarding Quality of LLC calculation, e.g. percentage value of coverage of Master Data More detailed information about failures in LLC calculation failed, e.g. a list of problematic master data is displayedNavigation to incorrect Master Data is possible directly from the Application LogSignificant performance improvements in entering SNP Interactive Planning Table

SNP Master Data Queue Performance ImprovementsSNP Master Data Queue is updated in the background (as default setting)When user enters interactive planning table (~ 80%)When user Starts an SNP planning run (heuristics, optimizer, deployment etc.) from interactive planningWhen user schedules a background job, or is using the background screen in dialog modeStarts Planning Area Initialization


Supply Network Planning Enhancements –SCM 7.0 Continued

SNP Heuristics ImprovementsCurrent Behavior: The SNP Heuristic does not consider the Quotas set in Inbound Quota Arrangements, when Lot Sizes are set at the Destination LocationUsing BAdI /SAPAPO/SNP_HEU makes it possible possible to use these inbound quota arrangements as part of the planning runFurther info in OSS Note 1260960

VMI EnhancementsTransfer of intransit consignment special stock (with ERP EhP4)Integration of consignment special stock in a third party logistic provider scenario (ERP SD - special stock partner modeling)Split of TLB shipment and appropriate mapping to ERP sales order types if a parallel consigned and non consigned scenario is usedCreation of ship-to location (“customer”) products in SCM via CIF based on customer master data in ERPAutomatic ATP check of TLB shipments published to ERP


Supply Network Planning Enhancements –SCM 7.0 Continued

CIF EnhancementsAll correct material master data and product data structure objects in an integration model are transferred from SAP ERP to SAP APOThe erroneous master data are not transferred to SAP APO Transaction: /sapapo/cfmincrIncorrect master data are collected in the integration model: If one Master Data object fail in a Logical Unit of Work (LUW) then the whole LUW fail. All the objects in that LUW have to be reintegrated. Re-transfer of these master data objects to SAP APO can be easily triggered after the master data are correctedTo enhance the performance in transferring product data structure objects from SAP ERP into SAP APO, a parallel CIF load logic has been implementedPrerequisite: ERP EhP04, Business Function CA_CIF_INILOAD_01 need to be activated.

SNP Master Data Monitoring integrated into the CCMS MonitorCCMS = Computing Center Management SystemFlexible and universally applicable infrastructure with which you can monitor the entire IT landscape centrally. Quickly and reliably reports problems that occur. More info at http://service.sap.com/monitoring


APO – Differences between 5.0 to 7.01. Demand Planning 2. Supply Network Planning3. Production Planning Detailed Scheduling4. Global Available to Promise

Agenda


Production Planning & Detailed Scheduling Enhancements – SCM 2007 (5.1)

Capacity ReservationsDefine “Demand Characteristics” vs. “Production Characteristics” (Blocks) that can reserve capacity within bucket for strategic customer requirements that meet the defined criteriaGoal: Guarantee most profitable capacity utilization while improving production lead times, leads to customer getting reliable delivery date promises and better visibility of production capacity

Block Planning Proposals from SNPPropose blocks from resource load after SNP optimizer runPropose characteristic requirements, start date and length for download to block maintenanceDownload can be done for definable time intervalOptimal length and sequence of blocks regarding set-up costs, profits and existing requirements

Capable To Promise (CTP) EnhancementsCheck capacity reservationsCheck allocations on semi-finished products in multilevel CTP (Badi required)Pegging Alternatives: Automatic proposal of receipt allocation with the ability to interactively assign receipts to order requirements


Production Planning & Detailed Scheduling Enhancements – SCM 2007 (5.1) Continued

MRP Based DS (process flow)1. MRP in ERP 2. Production Orders, Planned Orders and Purchase Requisitions are transferred to SAP APO3. Scheduling for all of these objects is performed in SAP APO – Detailed Scheduling4. Scheduled dates for all of these objects are transferred to ERP

Note: No PDS/PPM in SAP APO, only Plant, Material and Resource

Campaign Planning Enhancements – Usability & IntegrationMerge campaigns in the graphical planning boardSplit campaign in the graphical planning boardMove orders via drag&drop from one campiagn to another campaign Select all order of a campaign in receipts viewAdd external campaign number information from ERP to SAP APO (*)Delta reporting for campaigns (*)

Continuous ImprovementsDelta report for manual reservations Copy the shelf life dates from the SNP orders to PP/DS (order specific)CIF Post Processing & CIF Restart [Report /SAPAPO/CIF_EMRG_QINSCHED (for SCM inbound)]



Production Planning & Detailed Scheduling Enhancements – SCM 7.0

Characteristics Based Cross Location PlanningEnhance the heuristics functionalities of PP/DS for sophisticated Cross Location Planning

Interactive Sourcing: Enables the planner to decide on the source of procurement based on the availability of key components and key resource capacity

Descriptive Characteristics Propagation: Propagation of descriptive (Commercial) characteristics across location and production levels to enable consumption and capacity reservation

Shelf Life Propagation: Propagates the shelf lives of the demand across locations and production levels

Demand Propagation: Enables the planner to propagate demand across locations.

Delete Dependent Order Network: Deletes all pegged orders downwards, i.e. sub-assemblies and purchase requisitions, to the selected order

Enhance the Product Planning Table for display of cross location parametersNew Cross Location Chart: Provides the planner a consolidated view of the cross location planning attributes, to visualize distributed relationships

Characteristics and configuration filters

Display of Production Output in periodic format for the resource

Multiple loading of periodic charts

Enhanced Block Maintenance HeuristicsRescheduling of orders when a block is modified or the sequence of blocks is changedThe links between operations and blocks are kept intact, if possibleOperations are rescheduled according to the DS strategy profile


Production Planning & Detailed Scheduling Enhancements – SCM 7.0 Continued

Deployment with PPDSDeployment functionalities available for PP/DS for both Make-to-Stock and Make-to-Order segmentPP/DS Deployment has similar capabilities as SNP Deployment

It confirms quantities that really can be transferred and changes the planned stock transfers accordingly

ATD quantity is calculated based on the ATI and ATR categories

Characteristics based deploymentConsideration of subset of deployment relevant characteristics defined in the characteristic profile

Deployment only for identical characteristics values

Only Pull Deployment Possible

CTM with PP/DS Master Data will now consider:Shelf Life DataBlock PlanningObject dependencies for order generation

Selection Conditions

Procedures with/without reference characteristics

Activity Valuation

Variant tables


Production Planning & Detailed Scheduling Enhancements – SCM 7.0 Continued

Resource NetworksUsed to model restrictions of the flow of product through the plant based on the physical abilities to connect resourcesReduces the number of Master Data permutations in the PPM & PDS by eliminating the need for mode couplingNew Master Data element will be stored within additional tables in APO and can be changedResource Network links can be prioritizedWill constrain within orders as well as cross ordersNew Alerts have been created, and will show if this constraint has been violatedOrder Header has been enhanced to include the Resource Network ID

Finite Tank PlanningAbility to develop a feasible plan while considering capacity limitations of storage resourcesTank selection and order creation is now part of the PPDS Optimizer run. It will create feasible orders based upon the “Max Fill” of the modeled container resourcesNew Master Data element “Product Storage Definition” has been created to allow for the modeling of enhanced product flow. Supported for both PPM & PDS. Can also be integrated from R/3 Product Flow master dataPegging will be considered from a specific storage resourceBlending (no reaction) in a Mixer resource will also be supported


APO – Differences between 5.0 to 7.01. Demand Planning 2. Supply Network Planning3. Production Planning Detailed Scheduling4. Global Available to Promise

Agenda


Global Available to Promise - SCM 2007 (5.1)

BOP Equal Quality Distribution (EQAL)

Goal: To fairly redistribute available quantities among items during BOP in case of supply shortage.

Two Distribution Methods:

Value BasedAll items get the same minimum and up to a maximum quantities and

remainder is distributed in the order of the sorter.

Percentage BasedAll items get a given % of their original required quantities.Min. & Max. can be defined. Distributed proportioned quantities that exceed

maximums or fall below minimum will be adjusted.% can be defined by

Manual (user defined)Automatic by system


Global Available to Promise - SCM 7.0

BOP EnhancementsDe-integration of BOPI from Product ViewPerformance Improvements

BOP update performance for STOs improved by Variant SplitSorts all items of one STO into one variant and thus prevents locking issues

Adoption of Scheduling Results in BOPReuses the scheduling results from the ATP check in the batch backorder

processing and sends them to the OLTP systemUpdate multiple ERP documents per queue

Allocation EnhancementsPerformance Improvements- The update of characteristic combinations and time

series in DB has been enhanced to meet high volume requirementsPlanning Area can be bypassed using BAPI_APOPAL_INSERT

Enhanced Allocation Characteristic UpdatesGenerated selection view allows users togive restrictions based on the characteristic

combinationsAdded additional option “Backward Consumption from Nearest Bucket“ in addition

to always consuming the oldest first

Subcontracting in MATP (Enhanced) – Flow on following slide


Scenario & Process Description – Flow

Subcontracting with RBACustomer orders FP at plantATP-check at plant: No stock!RBA-check at plant:alternative location: VendorSubcontracting activated…BOM explosion at vendor:CP1 and CP2 requiredRBA-ATP-check at vendor: - CP1: plant is provider- CP2: D-Center is provider

CustomerPlant

Vendor/ Subcontractor

FP FP

CP1

BOM-Explosion

FP

CP2

ATP RBA

CP2

CP1 RBA

RBA

FP: Finished Product

CP: Component

: Flow of goods

D-Center

My company

© 2010 SAP AG. All rights reserved. / Page 33© SAP AG 2010 /

SAP SCM

Eric [email protected]

service.sap.com/rkt-scm

Q & AThank you for your interest!

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SAP assumes no responsibility for errors or omissions in thisdocument.”


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Upgrade from 5.0 to 7 - SAPfm.sap.com/data/UPLOAD/files/D2 04 - APO 5-7 Update-FINAL.pdf · Run & adjust forecast in interactive planning ... Interchangeability Master Data can be