Deployment & Available-to-promise (ATP) in SCM EGN 5623 Enterprise Systems Optimization (Professional MSEM) Fall, 2011

Deployment & Available-to-promise (ATP) in SCM Theories & Concepts EGN 5623 Enterprise Systems Optimization (Professional MSEM) Fall, 2011

Deployment and ATP CTP Modules in SCM (Review) Deployment setting Deployment strategy Available-to-deploy (ATD) Available-to-receipts (ATR) Available-to-issues (ATI) Transport Load Builder (TLB) 3. Available-to–promise (ATP) Capable-to-promise (CTP) Multi-level ATP (ML-ATP) check 4. SCM Project Guidelines

Deployment and ATP CTP Modules in SCM (Review)

Planning with SAP ERP & SCM Basic Components of SAP SCM SAP ECC ERP SAP SCM (includes SAP BW) Core Interface (CIF) Demand Planning Supply Network Planning and optimization Production Planning with capacity considerations ATP CTP Detailed Scheduling Deployment Transportation planning Vehicle routing and scheduling Mater data Materials Locations Partner Plants Info records Transactional data Customer orders Production orders Purchasing orders Execution

Two planning Scenarios for SAP SCM (Review) Alternative Scenario Base Scenario

Work Flow in SAP SCM (Review)

Deployment After mid to long term SNP planning and after detailed PP/DS planning for production, deployment determines which distribution requirements of the distribution centers or VMI customers can be covered by the existing supply.

Deployment Setting

Deployment Setting If the available quantities are not sufficient to meet demand or if they exceed the demand, deployment makes adjustments to the stock transfers created by the SNP run. The system reduces the stock transfer and decides how much will be deployed to each distribution center. The deployment heuristic reaches this decision using the defined rules.

Deployment Setting If the quantities that are actually produced, procured and the demands match the Supply Network Planning (SNP) planning quantities, deployment merely confirms the stock transfers. The quantities of different products confirmed by deployment can be combined into stock transport orders by the Transport Load Builder (TLB).   Deployment and TLB are used to confirm stock transfers.

Deployment Strategies Pull deployment Pull horizon

Deployment Strategies There are several rules available for the deployment heuristic: Fair share deployment Push deployment Pull push deployment

Fair Share Deployment Fair share deployment is used if demand exceeds supply. Rule A: the quantities are deployed in proportion to the original demands in the distribution centers when the total distribution requirement exceeds the supply. Rule B: increase the stock on hand at all demand locations to the same percentage of the target stock level. Rule C: the objective is to distribute the Available-to-promise (ATD) quantity at the demand location according to the outgoing quota arrangements. Rule D: distribute the stock according to the priorities of the outbound transportation lanes of the source location.

Quota Arrangement

Incoming/Outgoing Quota Arrangement Incoming quota arrangement You use an incoming quota arrangement to specify which proportion of a requirement is to be procured from which source location (e.g. vendor). Outgoing quota arrangement You use an outgoing quota arrangement to determine which proportion of the receipts is to be delivered onward to which destination location (e.g. one of your distribution centers).

Push Deployment Push deployment determines which supplies are taken into account during the deployment calculation. The push rules are used if supply exceeds demand, and the surplus needs to be distributed as soon as possible.

Pull Deployment Pull deployment determines which demands are taken into account during the deployment calculation. Stock is distributed according to the due dates specified at the individual demand locations. No supply is distributed to the demand source in advance of the demand date.

Available-to-deployment (ATD) When procurement and production are finished, the system checks which product quantities are actually available in the source location (location with stock). The total of these product quantities is referred to as the available to deploy quantity (ATD quantity).

ATD Quantity Calculation

Available-to-receipts (ATR) In standard category group ATR (available-to-receipts), you group together all the ATP (available-to-promise) categories that are to be taken into account as receipts for deployment. Receipts include stock, production orders, and purchase orders.

Available-to-issues (ATI) In standard category group ATI (available-to-issues), you group together all the ATP categories that are to be taken into account as issues for deployment. Issues include sales orders and reservations. The ATD (available-to-deploy) quantity is calculated from category groups ATR and ATI.

Available-to-deployment (ATD) The different deployment horizons are: The push horizon specifies the number of days from today’s date, over which you want to take into account the receipts for today’s deployment (ATD quantity). The deployment horizon specifies the number of days from today’s date, over which you want to confirm stock transfers during today’s deployment. The pull horizon specifies the number of days from today’s date, over which you want to take into account demands for today’s deployment.   Deployment is always done from one delivery location to the receiving location (DCs or Customers).

Horizons – SCM (APO) versus ECC (ERP, R/3)

Available-to-promise (ATP) ATP check – also known as the availability check – represents an online search that should ensure that a company can provide the requested product at the requested time in the quantity requested by the customer. The ATP check can use the basic methods to determine if a requirement can be confirmed. Basic methods: Capable-to-Promise (CTP) Multilevel ATP Check

Capable-to-promise (CTP) CTP allows to check for free capacity, which normally performs at finished goods level. There are two options to make CTP check: Bucket-oriented CTP Time-continuous CTP Bucket-oriented CTP is to check the capacity based on a finite bucket capacity and doesn’t regard the detailed sequence of orders within the bucket. CTP triggers the creation of planned orders by ATP check.

Business Events (Review)

Procedure of Capable-to- promise (CTP)

Multi-level-ATP (ML-ATP) ML-ATP checks components according to ATP setting. It confirms a customer request if components for the product are available in time, i.e. taking the lead time to produce the finished product into account. If the components have a late availability, the availability of the finished product is recalculated in ATP using correlations.

Multi-level ATP (ML-ATP)

Deployment & Available-to-promise (ATP) in SCM SAP Implementation EGN 5623 Enterprise Systems Optimization (Professional MSEM) Fall, 2011

Define SNP Deployment Profile

Transport Load Builder (TLB)

Assign the TLB profile to the transportation lane

Transport Load Builder (TLB)

Transport Load Builder (TLB)

Transport Load Builder (TLB)

Supply Planning Tasks and Output for SCM (Review)

ATP Categories

Supply Planning Tasks and Output for SCM (Review) Identify sources for finished products Plan and consider safety levels in any location Distribute production over plants Choose production resources in plants Explode bill of materials in plants Identify sources for supply of raw materials and components Outputs Purchase requisitions Stock transport (purchase requisition) Planned production orders

Exercises: Module 11 Deployment (Section 3) 11.2 Available to deploy 11.1 Deployment Settings 11.2 Available to deploy 11.3 Deployment strategies 11.3.1 Define SNP deployment profile 11.4 Transport Load Builder (TLB) 11.4.1 Define transport load builder profile 11.4.2 Assign TLB profile to transportation lane 11.5 Run deployment heuristics 11.6 Summary Module 12 Supply network planning with capacity to match (CTM) 12.1 Capable to Match (CTM) 12.2.1 Delete transactional data

Exercises: 12.1.2 Master data selection 12.1.3 Create order selection 12.1.4 Create CTM profile 12.1.5 Consistency check for CTM master data 12.1.6 Planning with CTM