APO Upgrade from 5.0 to 7.0
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1 SCM CVN Event - Philadelphia APO Upgrade from 5.0 to 7.0 Eric Simonson SCM Solution Management July20, 2011
2 Agenda APO Differences between 5.0 to Demand Planning 2. Supply Network Planning 3. Production Planning Detailed Scheduling 4. Global Available to Promise 2010 SAP AG. All rights reserved. / Page 2
3 Continuous Innovation Around a Stable Core SAP Enhancement Packages for Applications Industries ERP 6.0 CRM 7.0 PLM 7.0 SCM 7.0 SRM 7.0 Stable core defined to be SAP ERP 6.0 today, extended to core applications of SAP Business Suite in 2008 Leverage proven functionality SAP Business Suite (SAP enhancement package 1 for) SAP NetWeaver 7.0 (as foundation for SAP Business Suite) Stable Core Continuous innovation delivery via enhancement packages, selectively adoptable Continuous service enablement Uniform availability of industry best practices 2010 SAP AG. All rights reserved. / Page 3
4 Demand Planning Enhancements SCM 2007 (5.1) DP Interactive Planning Ease of Use Display a chart in a popup window only showing the values selected by a user New 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) 2010 SAP AG. All rights reserved. / Page 4
5 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 functionality Shuffler window shall be adjusted to keep the previous condition selection when the Show property is changed Mass Maintenance for Selection Variants Planning Book selector dropdown list Copy Selection Variants assignment from one user to another 2010 SAP AG. All rights reserved. / Page 5
6 Demand Planning Enhancements SCM 7.0 Forecasting Enhancement MLR with POS Improved demand visibility and response leads to higher forecast accuracy Exact 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 Method Include 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 analysis Calculates fluctuation due to inventory in the retail supply chain (which is not visible to the manufacturer) Works with Life Cycle Planning UI adjustment for the end user to set up the forecasting method as well as changing parameters in interactive planning Has its own new alerts: Diagnosis group using MAPE Insufficient data to execute algorithm MAPE upper limit exceeded Calculated MAPE greater than statistical forecast MAPE 2010 SAP AG. All rights reserved. / Page 6
7 Forecast in Interactive Planning Run & adjust forecast in interactive planning Key figures: Forecast Shipment history POS history Statistical forecast Inventory flux Adjust forecast parameters in interactive planning on the fly: Forecast / history horizon or number of periods Statistical forecast model & smoothing factors Key Figure & version Other parameters View messages 2010 SAP AG. All rights reserved. / Page 7
8 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 calculation New white noise test is based on the Box-Pierce test Method= /SAPAPO/SCM_FCSTPARA -> WHITE_NOISE_TEST 2010 SAP AG. All rights reserved. / Page 8
9 Structural change in history Structural change 2010 SAP AG. All rights reserved. / Page 9
10 Demand Planning Enhancements SCM 7.0 Continued Customer Forecast Management Objective of new development Integrate 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 Enhancements Flexible 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 2010 SAP AG. All rights reserved. / Page 10
11 Customer Forecast Analysis Dashboard View customer forecast data grouped according to alerts generated during the forecast analysis run You 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. Use: Netweaver Business Client Internet Browser 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/approval 2010 SAP AG. All rights reserved. / Page 11
12 CFM Dashboard - Detailed View 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. Approve and release for downstream planning Per profile Comparison of new customer forecast with last customer forecast Adjust Customer Forecast as needed Per profile Comparison of new customer forecast with new adjusted forecast 2010 SAP AG. All rights reserved. / Page 12
13 Agenda APO Differences between 5.0 to Demand Planning 2. Supply Network Planning 3. Production Planning Detailed Scheduling 4. Global Available to Promise 2010 SAP AG. All rights reserved. / Page 13
14 Supply Network Planning Enhancements SCM 2007 (5.1) Profitability Driven Supply Chain Planning SNP Optimizer can consider penalty groups to prioritize customers or customer segments Optimizer can consider quantity based penalty costs to prioritize larger orders Layered SNP Optimization to sequentially plan customer segments according to their importance Use Set-up Matrix in SNP optimization to optimize block schedule Display of sequence information in SNP interactive planning to evaluate optimization result Create Capacity Reservation proposal from SNP to ensure most profitable capacity utilization Generate block proposal from SNP to minimize set-up costs and define most profitable production schedule Shelf Life in SNP Display shelf life data of demands, receipts, stocks, and expiring/wasted goods and shelf life based stock balance Propagate shelf life data of demands (for example: customer orders) across the supply chain Generate alerts for goods that will expire or for shelf life mismatches between demands and stocks Integrate 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 EhP SAP AG. All rights reserved. / Page 14
15 Profitability Driven Supply Chain Planning screen shots 2010 SAP AG. All rights reserved. / Page 15
16 Supply Network Planning Enhancements SCM 2007 (5.1) Continued Subcontracting Enhancements Subcontract 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 used Enable planners to perform manual adjustments and create subcontract purchase requisitions manually to incorporate any new information into the planning results Enable a seamless integration with R/3 (*) Capable to Match Enhancements Supply 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 distribution Minimum 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 2010 SAP AG. All rights reserved. / Page 16 *Prerequisite: SAP ECC 6.0
17 Supply Network Planning Enhancements SCM 2007 (5.1) Continued Optimization Enhancements Quota Arrangements: SNP Optimization respects time-dependent inbound quota arrangements on procurements from source locations, external suppliers and in-house production Receipts Bounds: SNP Optimization respects limits (lower and upper bounds) on TOTAL RECEIPTS of location products. Mass maintenance: /SAPAPO/TSKEYFMAIN SNP Optimizer engine can now also be used with Linux platform with similar performance and memory consumption as windows server 2010 SAP AG. All rights reserved. / Page 17 *Prerequisite: SAP ECC 6.0 EhP03
18 Supply Network Planning Enhancements SCM 2007 (5.1) Continued SNP Interchangeability Interchangeability 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 group Algorithm for forwarding stock using Form Fit Function (FFF) classes is enhanced Consideration of Interchangeability rules at target location Heuristic 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 introduced BADIs are introduced to control how existing stock is used up and to control handling of horizons 2010 SAP AG. All rights reserved. / Page 18 *Prerequisite: SAP ECC 6.0 EhP03
19 Interchangeability within SAP APO Modules SAP APO Application DP SNP Deployment 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 SAP AG. All rights reserved. / Page 19
20 Supply Network Planning Enhancements SCM 7.0 Low Level Code Determination Objective: 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 planning Enable LLC determination for selected Master Data in case of Supply Network Planning (SNP) LLC determination for SNP is integrated to the Process Chain Tool Provision 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 displayed Navigation to incorrect Master Data is possible directly from the Application Log Significant performance improvements in entering SNP Interactive Planning Table SNP Master Data Queue Performance Improvements SNP 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 planning When user schedules a background job, or is using the background screen in dialog mode Starts Planning Area Initialization 2010 SAP AG. All rights reserved. / Page 20
21 Supply Network Planning Enhancements SCM 7.0 Continued SNP Heuristics Improvements Current Behavior: The SNP Heuristic does not consider the Quotas set in Inbound Quota Arrangements, when Lot Sizes are set at the Destination Location Using BAdI /SAPAPO/SNP_HEU makes it possible possible to use these inbound quota arrangements as part of the planning run Further info in OSS Note VMI Enhancements Transfer 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 used Creation of ship-to location ( customer ) products in SCM via CIF based on customer master data in ERP Automatic ATP check of TLB shipments published to ERP 2010 SAP AG. All rights reserved. / Page 21
22 Supply Network Planning Enhancements SCM 7.0 Continued CIF Enhancements All correct material master data and product data structure objects in an integration model are transferred from SAP ERP to SAP APO The erroneous master data are not transferred to SAP APO Transaction: /sapapo/cfmincr Incorrect 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 corrected To enhance the performance in transferring product data structure objects from SAP ERP into SAP APO, a parallel CIF load logic has been implemented Prerequisite: ERP EhP04, Business Function CA_CIF_INILOAD_01 need to be activated. SNP Master Data Monitoring integrated into the CCMS Monitor CCMS = Computing Center Management System Flexible and universally applicable infrastructure with which you can monitor the entire IT landscape centrally. Quickly and reliably reports problems that occur. More info at SAP AG. All rights reserved. / Page 22
23 Agenda APO Differences between 5.0 to Demand Planning 2. Supply Network Planning 3. Production Planning Detailed Scheduling 4. Global Available to Promise 2010 SAP AG. All rights reserved. / Page 23
24 Production Planning & Detailed Scheduling Enhancements SCM 2007 (5.1) Capacity Reservations Define Demand Characteristics vs. Production Characteristics (Blocks) that can reserve capacity within bucket for strategic customer requirements that meet the defined criteria Goal: 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 SNP Propose blocks from resource load after SNP optimizer run Propose characteristic requirements, start date and length for download to block maintenance Download can be done for definable time interval Optimal length and sequence of blocks regarding set-up costs, profits and existing requirements Capable To Promise (CTP) Enhancements Check capacity reservations Check 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 2010 SAP AG. All rights reserved. / Page 24
25 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 APO 3. Scheduling for all of these objects is performed in SAP APO Detailed Scheduling 4. 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 & Integration Merge campaigns in the graphical planning board Split campaign in the graphical planning board Move orders via drag&drop from one campiagn to another campaign Select all order of a campaign in receipts view Add external campaign number information from ERP to SAP APO (*) Delta reporting for campaigns (*) *Prerequisite: SAP ECC 6.0 EhP03 Continuous Improvements Delta 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)] 2010 SAP AG. All rights reserved. / Page 25
26 Production Planning & Detailed Scheduling Enhancements SCM 7.0 Characteristics Based Cross Location Planning Enhance 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 parameters New 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 Heuristics Rescheduling of orders when a block is modified or the sequence of blocks is changed The links between operations and blocks are kept intact, if possible Operations are rescheduled according to the DS strategy profile 2010 SAP AG. All rights reserved. / Page 26
27 Production Planning & Detailed Scheduling Enhancements SCM 7.0 Continued Deployment with PPDS Deployment functionalities available for PP/DS for both Make-to-Stock and Make-to-Order segment PP/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 deployment Consideration 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 Data Block Planning Object dependencies for order generation Selection Conditions Procedures with/without reference characteristics Activity Valuation Variant tables 2010 SAP AG. All rights reserved. / Page 27
28 Production Planning & Detailed Scheduling Enhancements SCM 7.0 Continued Resource Networks Used to model restrictions of the flow of product through the plant based on the physical abilities to connect resources Reduces the number of Master Data permutations in the PPM & PDS by eliminating the need for mode coupling New Master Data element will be stored within additional tables in APO and can be changed Resource Network links can be prioritized Will constrain within orders as well as cross orders New Alerts have been created, and will show if this constraint has been violated Order Header has been enhanced to include the Resource Network ID Finite Tank Planning Ability to develop a feasible plan while considering capacity limitations of storage resources Tank 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 resources New 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 data Pegging will be considered from a specific storage resource Blending (no reaction) in a Mixer resource will also be supported 2010 SAP AG. All rights reserved. / Page 28
29 Agenda APO Differences between 5.0 to Demand Planning 2. Supply Network Planning 3. Production Planning Detailed Scheduling 4. Global Available to Promise 2010 SAP AG. All rights reserved. / Page 29
30 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 Based All items get the same minimum and up to a maximum quantities and remainder is distributed in the order of the sorter. Percentage Based All 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 2010 SAP AG. All rights reserved. / Page 30
31 Global Available to Promise - SCM 7.0 BOP Enhancements De-integration of BOPI from Product View Performance Improvements BOP update performance for STOs improved by Variant Split Sorts all items of one STO into one variant and thus prevents locking issues Adoption of Scheduling Results in BOP Reuses the scheduling results from the ATP check in the batch backorder processing and sends them to the OLTP system Update multiple ERP documents per queue Allocation Enhancements Performance Improvements- The update of characteristic combinations and time series in DB has been enhanced to meet high volume requirements Planning Area can be bypassed using BAPI_APOPAL_INSERT Enhanced Allocation Characteristic Updates Generated selection view allows users togive restrictions based on the characteristic combinations Added additional option Backward Consumption from Nearest Bucket in addition to always consuming the oldest first Subcontracting in MATP (Enhanced) Flow on following slide 2010 SAP AG. All rights reserved. / Page 31
32 Scenario & Process Description Flow Subcontracting with RBA Customer orders FP at plant My company ATP-check at plant: No stock! RBA-check at plant: alternative location: Vendor Subcontracting activated Customer FP ATP Plant FP RBA Vendor/ Subcontractor FP BOM explosion at vendor: CP1 and CP2 required RBA-ATP-check at vendor: - CP1: plant is provider - CP2: D-Center is provider D-Center CP2 CP1 RBA RBA CP1 BOM- Explosion CP2 FP: Finished Product CP: Component : Flow of goods 2010 SAP AG. All rights reserved. / Page 32
33 SAP SCM Eric Simonson service.sap.com/rkt-scm Q & A Thank you for your interest! 2010 SAP AG. All AG rights reserved / Page / 33 This presentation is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document.
34 2010 SAP AG. All Rights Reserved No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iseries, pseries, xseries, zseries, eserver, z/vm, z/os, i5/os, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation. Linux is the registered trademark of Linus Torvalds in the U.S. and other countries. Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries. Oracle is a registered trademark of Oracle Corporation. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc. HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C, World Wide Web Consortium, Massachusetts Institute of Technology. Java is a registered trademark of Sun Microsystems, Inc. JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. in the United States and in other countries. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence. The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages SAP AG. All rights reserved. / Page 34
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