Production Planning and Scheduling
with SAP APO PP/DS
Application Solution Management SCM
January 2010
Agenda
1.
2.
3.
4.
Introduction into Production Planning & Scheduling
APO PP/DS Features in Detail & Screenshots
SAP APO 7.0
SAP APO Info & References
© SAP 2007 / PP/DS Overview 2
Pain Points in Production Planning &
Scheduling
Do you have problems with …
A lack of transparency over missing components?
A lack of transparency of delayed sales orders?
Coordination between sales and production?
Capacity shortages?
Creating an optimized finite production plan?
Calculating and communicating realistic delivery dates
… and therefore face
Lost sales due to missing capacity / components or unnecessary production
and high inventory
Lack of information for right planning decisions (like reprioritization of orders
when backlogs occur)
High set-up costs/times and low resource utilization
Problems linking low BOM levels with the connected sales orders
© SAP 2007 / PP/DS Overview 3
Do you therefore need a tool to …
… create a production
schedule considering all
capacity constraints and
material availability?
… support you in
creating optimized
production plans in all
your factories?
© SAP 2007 / PP/DS Overview 4
…actively support you in
creating backlog free
production plans
considering priorities?
… show the critical
path, missing parts
and the cause of
the delay?
… support you in
personalized exception
based planning
considering all orders?
… allow what-if scenarios and
simulation for planning
alternatives and the consequences for the sales orders ?
APO PP/DS is the solution to your problems…
Optimized Plan – High Capacity Utilization
Optimizer based planning allows a significant higher capacity utilization
Feasible production plan as all constraints are considered
Delivery date accuracy – „once confirmed – always confirmed“
Feasible delivery date confirmations as all constraints are considered
Simulation of bottlenecks at all order levels up to to the sales order creates transparency
about the right prioritization and increases delivery date fulfillments
No missing parts
Regular finite planning under consideration of material availability at all levels avoids
unexpected missing parts
© SAP 2007 / PP/DS Overview 5
How APO is structured
Advanced Planning & Optimization
Demand Planning
APO DP: Improves the forecast quality and
planning accuracy
Supply Network Planning
Global Available-to-Promise
Transportation Planning &
Vehicle Scheduling
© SAP 2007 / PP/DS Overview 6
Alert Monitor
Production Planning &
Detailed Scheduling
Synchronize supply with demand in your
global supply chain by balancing push and
pull network-planning processes and by
handling replenishment and production
based on actual demand.
APO SNP: Improves visibility across your global
supply chain and lowers inventory
APO PP/DS: Supports you in creating optimized
production plans
APO gATP: Allows state-of-the-art sales order
confirmation planning processes
APO TP/VS: Optimizes transportation loads and
minimizes transportation costs
APO Alert Monitor: Powerful exception message
system integrated in all APO planning modules
APO PP/DS: Production Planning
Delivers a short term production plan that matches overall supply to
demand, given available resources and production methodology.
Features
Multi-level production planning
Capable-to-Promise
Use existing or own developed
heuristics
Supports lot quantity calculations and
sourcing
Support the following Models:
Make to Stock
Make to Order
Make to Order with Order BOM
Engineer to Order
Project Manufacturing
Flow Manufacturing
Order Pegging
Integrated with the APO Alert Monitor
© SAP 2007 / PP/DS Overview 7
Key Benefits
Determines how, when, and where
resources and materials should be
deployed to accomplish the production
goals
Master planning for materials
and capacity (resource loads)
Realistic delivery date confirmations
…
APO PP/DS: Detailed Scheduling
Determines optimal production sequence for execution, to meet
delivery commitments based on actual constraints on the shop floor.
Features
Scheduling Optimizer
Optimal Sequencing
Flexible & Graphical Activity
Scheduling
Backlog Resolution Planning
What-if Analysis & Simulation
Forward & Backward Scheduling
Configurable Exception Alert Monitor
Plan Monitor
Production Order Release
…
© SAP 2007 / PP/DS Overview 8
Key Benefits
Optimal production sequence that is
feasible and can be executed
Allows simulation of various planning
scenarios to determine optimal schedule
Optimization based on actual constraints
ensures reliable delivery due date
promises
Industry specific planning processes in PP/DS
Enables special planning processes tailored to industry-needs.
Process Industries
Discrete Industries
Mill Industries:
Block planning: Planning with
characteristics, pre-assignment of
production capacities
Automotive Industries:
Sequencing and model-mix planning on
production lines, determination and optimal
distribution and sequence of orders
Chemical/Pharmaceutical Industries:
Production campaign planning and
optimization, tank planning
Industrial Machinery & Construction:
Project-oriented Manufacturing
Food Industries:
Planning with shelf-Life
…
© SAP 2007 / PP/DS Overview 9
Aerospace & Defense:
Customization with Order Bill of Material
…
Supply Chain Execution & Supply Chain
Planning
Supply Chain Planning
Supply Chain Execution
SAP APO
ERP
Master
Data
Production Planning (PP)
…
Transactional Data
Transactional
Data
(real-time)
Master Data
(real-time)
(APO to ERP)
(ERP to APO)
© SAP 2007 / PP/DS Overview 10
Transactional
Data (real-time)
Supply Network Planning
Production Planning &
Detailed Scheduling
Global Available-to-Promise
Stock
Production
Orders
Planned
Orders
Locations
Confirmation
Stock
Transfer Orders
Products
Goods
Receipt
Order
Conversion
Resources
Purchase
Orders
Sales
Order
confirmation
BoM &
Routings
Sales
…
… Order
…
Alert Monitor
Sales & Distribution Planning
(SD)
CIF
Material Management (MM)
Demand Planning
Typical Planning Cycle
... Backlog free
... Restriction based
... Human based sense & respond
1
Productions Planning- and
Optimization Run
1) Weekly program and
2) Short term change-over and
sequence optimization
2
5
Sense
&
Respond
Manufacturing & Procurement
Execution – Changes,
Exceptions
Monitor Alerts for
Orders and main assemblys
3
4
Simulate and compare
alternative solutions, execute
decision
Interactive Scheduling to
reduce late orders and
capacity overload
... Without missing parts
... Optimized Plan
... On time
© SAP 2007 / PP/DS Overview 11
Benefits SAP APO PP/DS
Automatic data transfer to and from SAP ERP
Sub-daily planning
Real-time data synchronization and dynamic exception messages
Seamless integration of SAP APO to industry-specific solutions
(e.g. block planning, campaign, model-mix planning, sequencing)
Material and capacity requirements planning in one process
Multi level capacity requirements planning; bi-directional
propagation of order changes.
Extensive detailed scheduling and optimization possibilities
User-specific planning algorithms with heuristic framework
Creation of feasible plans over the entire supply chain
Backlog free planning
© SAP 2007 / PP/DS Overview 12
Agenda
1.
2.
3.
4.
Introduction into Production Planning & Scheduling
APO PP/DS Features in Detail & Screenshots
SAP APO 7.0
SAP APO Info & References
© SAP 2007 / PP/DS Overview 13
Screenshots: Alert Monitor (Exception Based
Planning)
First task of the day for a
planner: Check the existing
alerts
Drill-down from the alert
monitor to the application to
solve the issue.
© SAP 2007 / PP/DS Overview 14
Screenshots: Product Planning Table (PP/DS)
Product Overview for
selected products
Periodic display of
capacity load
Navigation on
products / lines /
workcenters
Display relevant
alerts
Selection of charts
© SAP 2007 / PP/DS Overview 15
Screenshots: Product Planning Table (II)
New selection of
charts
© SAP 2007 / PP/DS Overview 16
Screenshots: Detailed Scheduling Planning
Board
Resource View
Save your own
simulation
© SAP 2007 / PP/DS Overview 17
Product View
Screenshots: Detailed Scheduling Planning
Board
Depot
Order depot
© SAP 2007 / PP/DS Overview 18
Screenshots: Order context (table view)
Demand
Which orders cover
the demand…
© SAP 2007 / PP/DS Overview 19
Screenshots: Order context (graphical view)
Demand
Connected planned
orders?
© SAP 2007 / PP/DS Overview 20
Screenshots: CIF Integration Model
Transaction in ERP
CIF Integration is realtime integration of master
data and transactional data /
stock
© SAP 2007 / PP/DS Overview 21
Feature: PP/DS Optimization in Scheduling
Setup times in paint shop
Setup time in minutes
Prod.
A
B
C
Product A: white color
Product B: orange color
Product C: blue color
A
0
30
40
B
10
0
30
C
20
10
0
Customer orders
A
C
20
A
In real-life environments
sometimes up to several
100.000 operations have
to be scheduled.
B
A
30
C
Setup
B
Setup
Setup
Optimal plan for setup
10
A
10
Setup
A
Setup
B
C
Optimal plan for setup and due dates
10
A
Setup
© SAP 2007 / PP/DS Overview 22
10
B
Setup
40
C
time
30
Setup
A
A
Feature: Multi-level problem solving with order
pegging
Level Code 1
10
20
10
10
20
40
10
30
100
30
100
40
60
50
Shortage
Level Code 2
20
30
50
50
50
30
50
(+20)
Level Code 3
Excess
coverage
50
50
50
20
80
Level Code 4
© SAP 2007 / PP/DS Overview 23
50
30
70
Delay
(-10)
50
Feature: Simulation
Active version 000
Simulation version 003
Simulation version 002
Simulation version 001
Machine breakdown
Shift changes
Rush orders
Fluctuation / Personal
Potential bottlenecks
and overloads
Determine bottlenecks
and check adjustments
© SAP 2007 / PP/DS Overview 24
Feature: CTP (Capable-to-Promise)
Supply Chain Planning
Supply Chain Execution
SAP APO
ERP
Demand Planning
Production Planning (PP)
…
Plan Start
Supply Network Planning
Transactional Data
(real-time)
PP/DS
Global Available-to-Promise
Planning Direction
Bucket Capacity
Time-Continuous Capacity
© SAP 2007 / PP/DS Overview 25
Alert Monitor
SD
CIF
Material Management (MM)
Bucket oriented PP/DS
capacity check during
sales order entry as
basis for reliable
confirmation dates
Desired Date
Feature: MRP Based Detailed Scheduling (1/2)
New process: Production Planning / MRP in ERP and only perform Detailed
Scheduling in SAP APO-PP/DS („MRP based DS“)
Limited master data required in SAP APO
Use Detailed Scheduling in APO-PP/DS either as a black-box or interactively
Benefits of MRP Based Detailed Scheduling
Compared to scheduling in ERP
1. Advanced Scheduling functionality to create a feasible plan
2. Consideration of interdependencies between orders
3. Flexible scheudling heuristics
4. Schedule Optimization
Compared to a complete PP/DS implementation
1. Only a small change to ERP process
2. No change or re-implementation of customer specific enhancements and
modifications to the MRP run
3. Integration of Collective orders
4. No PDS \ PPM transfer
© SAP 2007 / PP/DS Overview 26
Feature: MRP Based Detailed Scheduling (2/2)
Process
1. MRP in ERP
2. Prodcution Orders, Planned
Orders, & Purchase
Requisitions are transfered to
APO.
3. Scheduling for all these
objects is performed in APO
4. Scheduled dates for all these
objects are transfered to ERP
Target Customers
Those who have PP in place but are missing scheduling functioanlity
Small & medium customers with limited IT resources \ budget
Customers who use Collective Orders in ERP
© SAP 2007 / PP/DS Overview 27
Agenda
1.
2.
3.
4.
Introduction into Production Planning & Scheduling
APO PP/DS Features in Detail & Screenshots
SAP APO 7.0
SAP APO Info & References
© SAP 2007 / PP/DS Overview 28
Continuous Innovation Around a Stable Core
SAP Enhancement Packages for Applications
Industries
ERP
6.0
CRM PLM SCM SRM
7.0
7.0
7.0
7.0
SAP Business Suite
(SAP enhancement package 1 for)
SAP NetWeaver 7.0
(as foundation for SAP Business Suite)
Stable Core
© SAP 2008
2007 / Page
PP/DS29Overview 29
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 practices
Motivation & Objective for Charcateristic
Based Cross Location Planning (CBCL)
Motivation for CBCL Planning
Increasing customization of products leads to increasing requirement of planning
with characteristics.
Globalization leads to planning across locations and visibility of the entire supply
network.
Objective
To enhance the cross location planning functionalities for the industries that are using
characteristics (e.g. Industries: Mill, Machinery & Components)
To enable the industries, using cross location planning, to use characteristics
(e.g. Industries: High Tech, Chemicals, Life Sciences)
© SAP 2007 / PP/DS Overview 30
CBCL Planning Enhancement Touch Points
Demand Planning
Sales
Distribution
Production
Sales Order Creation
Forecasting
Sales Order
with Rqmt. Class Det.
Forecast Release
Forecast Consumption
Assignment of
Characteristic Values
ATP Check
Integrated Distribution & Production Planning
Distribution Planning
Production Planning
Detailed Scheduling
Deployment
Transport Load Building
Delivery
© SAP 2007 / PP/DS Overview 31
Transport Execution
Production Execution
APO PP/DS Characteristic Based Cross Location Planning
Functional Enhancements
Release and Consumption of Forecasts with Configuration
Characteristics based Planning with CTM
New Cross Location Planning Chart in Product Planning Table
New and Enhanced Cross Location Planning Heuristics (i.e. Interactive
Sourcing, Demand Distribution, Descriptive Characteristics Propagation, etc)
Provision of Interactive Deployment for PP/DS
Propagation of Shelf Life across location
Rescheduling of Operation at Block Changes
Option for using TP/VS instead of TLB
Planning with characteristics in MTS for Non-DIMP customers
© SAP 2007 / PP/DS Overview 32
Motivation & Objective for Enhancing SAP
APO PP/DS for Process Industries
SCM 7.0 will provide a stable Planning and Scheduling framework for the
Process Industries to solve these planning issues and act as a basic foundation
for future developments in this area.
Resource Networks – They describe the physical links between resources in a plant
such as processing units, reactors, vessels, etc. A resource network describes the
flow of materials through a plant.
Finite Tank Planning – Ability to model and plan for tank restrictions, Max Fill Level,
within the production process.
Optimizer Order Creation – The PPDS Optimizer can now created planned orders
during the optimization run.
Business value
Target Industries for these enhancements include: Chemical, CPG, Oil & Gas,
Pharma, Mill, Mining
Ability to model additional constraints within the plant to derive a finite schedule
Reduction of Master Data modeling within PPM \ PDS for mode coupling
Enhanced Master Data integration for Tank Planning via new Product Storage
Definition
Consideration of valid tank options can deliver a feasible production plan
© SAP 2007 / PP/DS Overview 33
Business Background:
Production Process in Process Industries
A typical layout of Production Process in Process Industries involving Resource
Networks and Tanks.
© SAP 2007 / Page
PP/DS34Overview 34
APO PP/DS - Resource Networks
Functional Enhancements
This new Master Data element will be stored within additional tables in APO and
can be changed at any time.
Resource Network Links can be prioritized.
A resource can be assigned to multiple Resource Networks.
The Resource Network is assigned to the Product Master.
Supported as part of PPM & PDS, or orders without a source of supply.
Will constrain within orders as well as cross orders.
Live Cache and Optimizer run will respect this additional constraint.
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.
© SAP 2007 / PP/DS Overview 35
APO PP/DS – Finite Tank Planning
Functional Enhancements
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.
New flag “Allow Multiple Products” has been added to the Resource Master to
enable storage of multiple products without alerts.
Pegging will be considered from a specific storage resource.
Blending (no reaction) in a Mixer resource will also be supported.
Will also respect Resource Networks as they are mutually exclusive.
© SAP 2007 / PP/DS Overview 36
Agenda
1.
2.
3.
4.
Introduction into Production Planning & Scheduling
APO PP/DS Features in Detail & Screenshots
SAP APO 7.0
SAP APO Info & References
© SAP 2007 / PP/DS Overview 37
Some figures about SAP APO & Information
Some figures about SAP APO
First release SAP APO 1.1 (1998)
Current release: SAP APO 7.0 Enhancement Package 1 (9th APO
release) part of SCM 7.0
Outlook: Planned next APO shipment: Enhancement Package 2 for
SAP SCM 7.0
Number of active APO customers: 2000+
Information
http://help.sap.com/
Service marketplace for SCM: http://service.sap.com/scm
SCM Express (preconfigured PP/DS): www.sap.de/scmexpress (in
German)
© SAP 2007 / PP/DS Overview 38
AT&S: Better Planning for More Efficient
Production with SAP® APO
© SAP 2007 / PP/DS Overview 39
Haas Automation Leverages SAP® ERP and SAP APO
for Improved Manufacturing and Sales Operations
QUICK FACTS
Haas Automation
Location: Oxnard, California
Industry: Industrial Machinery &
Components
Products and Services: Manufacturer and
distributor of machine tools
Revenue: $800 million
Employees: 1,350
Web Site: www.haascnc.com
SAP® Solutions and Services: SAP ERP,
SAP APO
Partner: Axon Global
“SAP’s APO solution increased our
Challenges and Opportunities
Manufacturing planning constraints
inhibited ability to react to changes in
demand and to events on the shop floor
Lack of visibility into consistent data
across a global enterprise
Objectives
Increase manufacturing planning
horizons to include full constraints
Optimize use of materials and shop
floor resources; reduce costs
Improve customer service metrics on
time to build, ship, invoice, and repair
Implement one global enterprise
platform to support rapid growth of
business
visibility to manufacturing capacity
from 21 to 156 days. We can now react
to changes on plant floor more
efficiently to maintain quality products
and customer service levels and
decrease costs at same time.”
Craig Kennedy
CIO
Haas Automation
Implementation Highlights
Phased rollout of three global regions:
Americas go-live in July, 2007; EMEA
in April, 2008; Asia/Pacific in Jan., 2009
1,280 users across 114 sites
worldwide; includes 600 users at HQ
Why SAP
SAP’s clarity of platform and product
direction
Functionality delivered and customer
references provided during sales
process
Benefits
Visibility into manufacturing capacity
increased from 21 to 156 days
Improved ability to react to change in
demand and unexpected events on
plant floor
Gained ability to execute “what if”
scenarios for required changes in
production
Customer Focus:
RESULTS
Planning cycles were slashed from 14 days to 1 day
Service level increased from 98.1% to 99.9%
Production flexibility was enhanced – the reduction of total setup time lowered
the production index and yielded a 12% capacity gain
Total package output increased by 13% (against a period with a comparable
number of orders)
Inventory turnover rose 14%
Software went live on schedule after a six-month project
© SAP 2007 / PP/DS Overview 41
Analyst Quotes: Gartner Supply Chain Planning
MarketScope Evaluation
“
SAP earned a “Strong Positive” rating in Gartner’s Supply Chain
Planning MarketScope for Supply Chain Planning.
Strong Positive is the highest ranking that Gartner gives in their
MarketScope evaluations.
If you are a Gartner client, we recommend that you visit Gartner’s
website to view the report.
Source: “MarketScope for Supply Chain Planning: Process Automation, 2009” by Tim Payne,
Gartner, April 28, 2009
The MarketScope is copyrighted 2009 by Gartner, Inc. and is reused with permission. The MarketScope is an evaluation of a marketplace at
and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by
Gartner. Gartner does not endorse any vendor, product or service depicted in the MarketScope, and does not advise technology users to
select only those vendors with the highest rating. Gartner disclaims all warranties, express or implied, with respect to this research, including
any warranties of merchantability or fitness for a particular purpose.
© SAP 2007 / PP/DS Overview 42
SAP SCM
www.sap.com/scm
Q&A
Thank you for your
interest!
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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 2007 / PP/DS Overview 43
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© SAP 2007 / PP/DS Overview 44