1. Master Data for SCM (1) Master Data in Demand Planning & Fulfillment Processes EGN 5623 Enterprise Systems Optimization (Professional MSEM) Fall, 2011

2. Master Data for SCM (1) Theories & Concepts EGN 5623 Enterprise Systems Optimization (Professional MSEM) Summer B, 2011

3. Master Data for SCM (1) Master Data in Demand Planning EGN 5623 Enterprise Systems Optimization (Professional MSEM) Fall, 2011

4. Master Data Overview Like in ERP, master data plays an important role in APO and control many processes. Some master data objects in APO have analogies in ERP like product (Material in ERP), and most of these are transferred from ERP. Others have to be maintained in APO. Most organisational entities from ERP are not needed for APO, which is only concerned with logistics and not accounting and costing; so organizational entities such as company codes, or cost centers have no significance in APO.

5. Master Data Overview Most master data such as materials are transferred from the ERP to APO. Locations is the main organisational entity in APO. In addition, different planners are created for each location and each of the following modules (DP, SNP, PP/DS, and TP/VS). The planners are assigned to the material master (i.e., product in APO); thus they are not transferred from ERP.

6. Master Data Objects in SAP APO and SAP ERP (review)

7. Location Types in SAP APO APO uses only one object for a location; it may have different location types. APO uses only the location name as the key, not the location type. Additional location information such as calendars, storage and handling resources and planning relevant categories (i.e., stock categories for SNP and receipt and issues for deployment) are defined in APO. Make sure no code crashes due to plants, suppliers or customers with the same names.

8. Location Types in SAP APO

9. DP Function in SCM (review) THEORY AND PRACTICE OF ADVANCED PLANNER AND OPTIMIZER IN SUPPLY CHAIN DOMAIN by Sam Bansal

10. Common Time Horizons for DP and Sales in SCM (review)

11. Level of Detail and Time Horizon of DP in APO Modules (review)

12. DP and Sales Processes in APO Modules (review)

13. DP Module in APO System Structure and Integration with ERP (review)

14. Overview Master Data and Application in DP and Sales (review) Master Data for Demand Planning: CVC, Product, Interchangeability group. Note: CVC can be generated from historical data that is transferred from ERP. If no historical data is available, e.g. for new products, CVC can be maintained in APO as well. Master data for Sales: Location, Product, Rules, and Interchangeability group.

15. Overview Master Data and Application in DP and Sales

16. Process for Demand Planning

17. Demand Planning Process The result of the demand planning process is the establishment of independent requirements which will trigger the planning activities of distribution, production and procurement planning. The sales forecast is consolidated and checked regarding plausibility, probably checked against a statistical forecast and corrected according to the experience of the planner before releasing it for the subsequent planning steps. The monitoring of the forecast accuracy and a feasibility check against the planning constraints (e.g. capacity) are further common process steps

18. Planning Levels and Consistent Planning The most elementary questions in DP are: on which levels (product, product group, …) to plan? in which granularity of time (weeks, months) to plan? which data is required? In APO, planning levels are represented by characteristics (CVC), the granularity of timer corresponds to the time (i.e., time bucket), and the data (linked to “key figures” such as revenue and sold quantity). Both characteristics and key figures are technically represented by “info objects”.

19. Data Structure for Demand Planning

20. Planning Levels and Consistent Planning Planning shall take place on the levels of sales organization, location, product and product group. Each product belongs to only one product group Each sales organization is linked to only one location ( Key figures are sales forecast and demand plan.

21. Planning on Aggregated Level

22. Automatic Disaggregation

23. Demand Planning Structure Overview

24. The display of the data and the planning is performed in Planning book. A planning book is always linked to a planning area which contains the key figures. For the defined characteristic value combinations (CVC) time series are created for each key figure of the planning area. The time series contain the actual data, so that the planning book serves to display the time series of the planning area. The planning area itself is connected to a basic planning object structure, where the relevant characteristics are defined. Historical data is stored in an info cube (which contains both characteristics and key figures).

25. Planning Object Structure and Planning Area

26. It is recommended not to change planning object structure and planning area

27. Time Buckets In DP there are two kinds of time bucket profiles: the storage bucket profile and the planning bucket profile. The data of planning area is always stored in the storage bucket profile, while the planning bucket profile is used to display the data in the planning book. In the planning bucket profile only those period types (month, week, …) can be used that are also defined in the storage bucket profile. If the time buckets do not match as with months and weeks, the periods are divided as shown below, in Figure 4.7.

28. Data Storage Bucket Profiles

29. Active Characteristic Value Combinations (CVC)

30. Entities for Life Cycle Modelling

31. Settings for Life Cycle Planning Example

32. Example for Life Cycle Planning

33. Promotion

34. CVC for the Use of DP-BOMs

35. Release of the Demand Plan

36. Process for Forecast after Constraints

37. Structure of the Transfer to SAP ERP

38. Master Data for SCM (1) Master Data in Sales Process EGN 5623 Enterprise Systems Optimization (Professional MSEM) Fall, 2011

39. Process for Order Fulfillment

40. Order Fulfillment Overview Order fulfillment contains the processes related to the customer from order taking, availability check and confirmation to the shipment to the customer. The sales order entry is performed in ERP either manually or via EDI, but ATP check is carried out in APO during the sales order entry. The transportation planning is performed in APO based on the deliveries and sends shipments back to ERP. There is an alternative way to perform transaction planning first based on sales orders and trigger the delivery creation from APO, but this has disadvantages in the flexibility if ATO check turns out to be unsuccessful.

41. Order Life Cycle

42. Tasks during Sales Order Entry

43. ATP Parameters and Entities

44. Categories and Attributes of a Supply Chain (review) - Reproduced from Fleischmann B., Meyr H, Hierarchy and Advanced Planning Systems, Handbooks in OR and MS, Chapter 9, Elsevier, 2003, pp 457-523

45. Business Events

46. Determination of Requirement Class

47. Default Assignment of Strategy to Requirement Class

48. Allocation Settings

49. Connection of Allocation Group to Planning Area

50. Rule Structure

51. Location Substitution with /Without Stock Requisition

52. Transaction for Condition Technique

53. Settings for Backorder Processing

54. BOP – Integration to SAP ERP

55. Master Data for SCM (1) Master Data in Demand Planning & Fulfillment Processes SAP Implementation EGN 5623 Enterprise Systems Optimization (Professional MSEM) Fall, 2011 Master Data for SCM (1) Master Data in Demand Planning & Fulfillment Processes SAP Implementation EGN 5623 Enterprise Systems Optimization (Professional MSEM) Fall, 2011

56. DP Module in SAP SCM Note: Strategic network design issues are not handled by SAP SCM

57. Master Data, Model, and Version

58. SAP ERP Transactions for Independent Demand Configuration

59. Setting for Checks with Exclusive Rules First

60. Exercises: 1. Module 2 (Section 1B) Distribution Centers Change of Node Type Change material type Create transportation zone Assign transportation zone to customers 2. Module 3 (Section 1B) Create production version for materials in ERP Distribution key Define distribution keys Create production version SCM resources setting Create the finished products – at the DCs level Create purchasing information records Display Info records by vendors