Business Consulting Services

SCM APO 4.0 TRAINING COURSE IN SUPPLY NETWORK PLANNING

Unit2: SNP Overview

COURSE OVERVIEW DIAGRAM

Course Overview Introductions & SCM Ov SNP Overview SNP Configuration

Capable to Match

2 3
4

Deployment Heuristics

10
11

Deployment Optimizer

SNP Master Data

Core Inter face SNP Transaction Data Supply Chain Engineer

12

5 6

SNP Heuristics

7
8

SNP Optimizer

COURSE OVERVIEW DIAGRAM

SNP Overview SCM Overview SNP Configuration SNP Master Data

SNP Master Data

SNP Transaction Data

Day 1

Day 2

SNP Heuristics

SNP Heuristics SNP Optimiser

SNP Optimiser

SNP Optimiser Dep. Heuristics

Day 3

Day 4

Unit2: SNP Overview | 2005

APO AND SNP INTRO: UNIT OBJECTIVES

At the conclusion of this unit, you should: Understand the processes that APO supports Be familiar with the APO architecture Understand the SNP Business Applications Be introduced to SNP functionality

APO INTRODUCTION

SAP SCM SOLUTION COMPONENTS

SAP SCM SOLUTION

APO BASIC SCOPE & FUNCTINALITY

THE SUPPLY CHAIN: ORIGINAL SUPPLY TO FINAL CONSUMPTION

INFORMATION FLOW

Transfer

Transfer

Transfer

Transfer

Supplier

Manufacturing

Distribution

Retail Outlet

Consumer

CASH FLOW

Supply Chain Optimization

Increase Customer Responsiveness at Least Cost

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Unit2: SNP Overview | 2005

TO BE COMPETITIVE, INCREASE REVENUES AND MARKET SHARE AND BE PROFITABLE

Companies need to . Have the right product at the right place at the right time Improve replenishment cycle time Improve Return on Inventory investment Increase utilization of capacity/resources
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Unit2: SNP Overview | 2005

APO

Stands for Advanced Planning and Optimization Its intent is to enhance global planning capabilities supported through advanced heuristics and optimization algorithms An Advanced Global Planning Tool Not an Execution System A Tool to control the entire Supply Chain A Package focussed on Constraints (Material, Capacities) A Tool capable to replace some current OLTP Functionality

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Unit2: SNP Overview | 2005

APO PRODUCT MAP

Monitor Strategic Tactical Supply Chain Cockpit

Network Design Supply Network Planning

Demand Production Transportation Distribution Planning & Deployment Planning & Vehicle Scheduling

Planning

Operational
Scheduling

Purchasing WorkBench

Planning & Detailed Scheduling

Collab. Planning

BUY

MAKE

STORE

MOVE

SELL

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TRANSACTION DATA TRANSMISSION

R/3 Initial Transfer Master DATA Transaction Data Incremental transfer APO

Master Data Transaction DATA

The Master data is transferred from SAP R/3 to APO in the beginning. The Transaction Data is also transferred from SAP R/3 to APO in the beginning. Subsequently, the Transport and Production orders are usually transferred from SNP to SAP R/3 after each run, and data such as inventory status is passed regularly from SAP R/3 to APO

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Unit2: SNP Overview | 2005

APO APPLICATION ARCHITECTURE

OLTP APO OLAP Historical Data External Data (e.g. POs Key Perform. Indicators

Demand Planning

Sales Orders Manufacturing Execution updates Inventory Movements

TP/VS Global ATP

Production Planning and detailed Scheduling

Supply Network Planning

Deployment

TLB

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Unit2: SNP Overview | 2005

APO PLATFORMS
Operating Systems

Windows NT
HP UX IBM AIX Sun Solaris Compaq True64 Unix, Siemens Reliant Unix

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Unit2: SNP Overview | 2005

APO PLATFORMS
Data Bases Oracle

SQL-Server

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Unit2: SNP Overview | 2005

CLIENT CONCEPT
Similar to R/3

One APO client to n R/3 clients

Live cache applications on client
SNP PP/DS TP/VS ATP

APO

Cache DB

live

BW Basis for Demand Planning

Not on client Needs to be organized via dedicated infocubes

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Unit2: SNP Overview | 2005

WHAT IS SUPPLY NETWORK PLANNING ?

A planning approach to create Tactical Plans and Sourcing Decisions that takes the complete supply network into consideration Supply Network
Planning Deployment Transport Load Builder

Meet Forecast and Actual Demand by:

Optimal use of Manufacturing, Distribution and Transportation Resources Consider all constraints in the supply chain

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Unit2: SNP Overview | 2005

SNP OVERVIEW

SNP ensures the optimal Use of Manufacturing, Distribution, and Transportation Resources to meet Forecasts and actual Demand while considering all Constraints in the Supply Chain SNP plans Production, Procurement and Transportation throughout the entire Supply Network using Optimizing and Heuristic Approaches Configurable Profiles determine on how the System generates Supply and Demand within Short, Mid and Long-term Planning SNP offers three competitive Algorithms: CTM, SNP Optimizer and SNP Heuristics
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Unit2: SNP Overview | 2005

SNP BUSINESS APPLICATIONS:

Inventory planning and deployment taking into account logistics and sales variability. High level capacity planning and macro global scheming to aid with capital equipment decision making based on sales runs. Visibility for planning with confidence. System provides cost- trend analysis for control on manufacturing expansion, Out-sourcing, 3rd party supply, etc. Support system for modeling what if scenarios that would impact the bottom line. Stores, DCs and VMI stock leveling with ability to build transport loads with predetermined constraints

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Unit2: SNP Overview | 2005

SCOPE OF SNP

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Unit2: SNP Overview | 2005

APO PLANNING FUNCTIONALITY SEQUENCE

Planning Horizon
Demand Planning (DP) Supply Network Planning (SNP) Production Planning (PP)
Detailed Production Scheduling (DPS)

Deployment Transport Load Builder (TLB)

Transportation Planning and Vehicle Scheduling (TPVS)

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Unit2: SNP Overview | 2005

SNP PROCESS
Demand Planning Forecast
Supply Network Pl.
Planned Orders Production Planning Detailed Scheduling Recommended TransportOrders

Deployment
Confirmed Transport Orders

Transport Load Builder

Transportation Planning & Vehicle Scheduling

Transport Orders

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Unit2: SNP Overview | 2005

DATA OBJECTS: DISTRIBUTION NETWORK

Customer Demands

Distribution Centers

Plants

Suppliers

Transport Order

Planned Order

Purchase Order
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Unit2: SNP Overview | 2005

SUPPLY CHAIN COCKPIT

Graphical instrument panel for modeling, navigating and controlling the supply chain Provides the insight and control needed to effectively manage the entire supply chain It is highly configurable to conditions within a wide variety of industries and business situations

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Unit2: SNP Overview | 2005

SUPPLY CHAIN ENGINEER

Used to create and maintain supply chain network models The network model represents a specific supply chain and consists of individual nodes and links A model can have different planning versions Several models, each with different versions can be created for simulation purposes
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Unit2: SNP Overview | 2005

OBJECTS IN THE SUPPLY CHAIN NETWORK

Objects include:

Locations Products Resources Production Process Models Transportation Lanes provide links between objects in a supply chain model
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Unit2: SNP Overview | 2005

SNP PLANNING FUNCTIONALITY

Supply Network Planning Strategies

Heuristics
Optimization Capable
SNP PP/DS Deployment

to Match

Deployment
Faire

share, push rules and deploy to order Optimization

Transport Load Builder

Leveling

TLB

in transport loading
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Unit2: SNP Overview | 2005

SNP STRATEGIES

SNP Heuristics: repair-based planning

Quota arrangements Production capacity check Capacity leveling Selection of best production site Optimization of production, transportation, and inv. costs Mixed Integer Linear Programming Metaheuristics Feasible solutions Calculation of quota arrangements

SNP Optimization: cost-based optimization

Capable to Match: supply to demand match

Matches supply to available demand via production and transportation capacity check

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Unit2: SNP Overview | 2005

DEPLOYMENT

Fair share
Proportional
Target
Montreal
Calgary Winnipeg Montreal

fulfillment Deploy to order

Push deployment Pull-push deployment

Demand

SAPCO

Customer

Philadelphia
Chicago

fence Supply fence

New Orleans

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Unit2: SNP Overview | 2005

TRANSPORT LOAD BUILDER

Plan for loading of transportation vehicles

Maximum

range of coverage Minimum/maximum load weight Maximum volume ATP check

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Unit2: SNP Overview | 2005

SNP PROCESS FLOW

Planning Area Administration APO Master Data Setup Model/Version Creation Supply Chain Model Setup Release of Demand Plan to SNP Planning Method Determination & Profile Settings Transport Load Building Simulation Supply Network Planning Run

Deployment Run Management by Exception Conversion into PP/DS orders

Interactive Planning

Release of SNP Plan to DP

PP/DS Planning

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Unit2: SNP Overview | 2005

POWERTASTIC, CO. SCENARIO

Vendor I DC I

Mfg Plant I

Vendor II

DC II

Direct Links

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Unit2: SNP Overview | 2005

SNP OVERVIEW: UNIT SUMMARY

You are now able to: Describe the supply chain process Describe how SNP fits into APO planning Describe the Supply Chain Cockpit Identify and describe the use of SNPs key components

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