APO analysis & Interactive Scheduling

1. APO analysis& Interactive Scheduling 2004. 12. 18 정 현 종

2. Agenda Demand Planning in APO Supply Network Planning in APO PP/DS in APO Interactive Scheduling *PP/DS: Production Planning & Detailed Scheduling

3. Demand Planning • Purpose • To create a forecast of market demand • Result • Demand Plan

4. Planner’s Knowledge Task-specific planning tools • Flexible views • Graphics • Promotional planning • Life cycle management • Cannibalization • Accuracy reporting • Information • Collaborative forecasts • Order & shipmentactuals & history • Cost • POS data • Nielsen / IRI data • ... R/3 엑셀 다른 실행 시스템 Anticipation of Future Demand Demand Planning Data Mart • Statistical Methods Multi-model approach • Average models • Exponential smoothing • Causal factors • Trend dampening • Model combination • Pick best Demand Planning *Cannibalization : 기업의 제품 포트폴리오에서 한 제품의 판매확대가 다른 제품의 매출감소를 가져오는 현상

5. Advanced Forecasting Reporting APO - SAP BW Integration Demand Planning Demand Planning Data Mart Sales History, Price, Costs, ... Business Information Warehouse Forecast • Demand Planning specific data • POS, Orders, Shipments • Forecast & Plan Scenarios • Unlimited Causal Factors • Life Cycle Patterns • Seasonal Patterns • Promotional Patterns • Central Data Pool • Summarized Data • Historical Data • Syndicated POS data • Cost Information

6. Planning area administration Master data setup Planning books design Definition/ Redefinition of forecast models Master data revision Creation of the Demand forecast Simulation Monitoring of Forecast accuracy Product Introduction/ end-of-life Historical data updates Creation of promotions Management by exception Forecast storage Fine-tuning of Demand plan Release of SNP plan to DP Reconciliation of Demand plans Release of demand plan to SNP SNP Flow Process of DP

7. Description of DP Process • Planning Area Administration • DP setup첫 번째 단계 • Planning Area specifies • 데이터 측정 단위 • 기준 통화(optional) • 통화 변환 type (optional) • Storage buckets profile that determines the buckets in which data is stored in this planning area • Aggregate levels on which data can be stored in addition to the lowest level of detail in order to enhance performance • Key figures that are used in this planning area • Settings that determine how each key figure is disaggregated, aggregated, and saved • The assignment of key figures to aggregates

8. Description of DP Process • Master data setup • To determine the levels on which demand plans are created, changed, aggregated and disaggregated. (product family) • Planning Book Design • In this process, you design the planning screens of different demand planners and/or groups of planners. You also have the option of defining macros for execution in the planning books.

9. Description of DP Process • Definition/Redefinition of Forecast Models • In this process, you create the forecast profiles on which automatic calculation of the forecast is based. • Creation of the Demand Forecast • In this process you create or modify the demand forecast.

10. Description of DP Process • Product Introduction and End-of-Life • Use life-cycle planning and "like" modeling to forecast a product's introduction and end-of-life. • Creation of Promotions • To plan promotions or other special events separately from the rest of your forecast.

11. Description of DP Process • Fine-Tuning of the Demand Plan • By making manual modifications. • Reconciliation of Demand Plans • To reconcile forecasts from different departments in your company, or from different business partners in your supply chain.

12. liveCache Description of DP Process • Release of the Demand Plan to SNP • This process makes the demand plan available to the supply chain planner if the supply chain planner does Supply Network Planning using liveCache orders Data Mart liveCache SNP Version DP Version

13. Description of DP Process • Forecast Storage • To retain for purposes of forecast accuracy monitoring • Historical Data Updates • To update the actual data in your planning area by loading the actual data for the period just completed.

14. Description of DP Process • Monitoring of Forecast Accuracy • To monitor • Master Data Revision • At the end of a forecasting cycle, you make any necessary revisions to your DP master data before the next forecasting cycle begins.

15. Supply Network Planning • Purpose • To plan product flow along the supply chain • Result • Optimal purchasing, production, and distribution decisions; reduced order fulfillment times and inventory levels; and improved customer service.

16. 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 Supply Network Planning Run Simulation Deployment Run Interactive Planning Management by exception Conversion into PP/DS orders Release of SNP Plan to DP PP/DS Planning Flow Process of SNP

17. Description of SNP Process • Planning Area Administration • The basis for all activities in APO SNP. It is a collection of parameters that define the scope of all planning tasks. • APO Master Data Setup • To use the Heuristic, Optimizer, or Capable-To-Match (CTM), the master data must be set up with care to achieve the desired results. Master data for SNP includes locations, products, resources, and production process models (PPMs).

18. Supplier: Plant: Distribution Center: Customer: Location Master Data • Storage, handling, supply, and production capacities • Production and shipping calendars • Storage cost per unit for each product • Purchasing cost per unit for each product, material per supplier • Penalty costs for exceeding available capacities

19. Product Master Data • Definition: A product is a material good or a service. It is an article or business transaction which is taken into account when planning the value chain. • Global Product Master Data • Product global product master data is general master data for a product. This data is not location-dependent . • Location-Dependent Product Master Data • This master data is product master data which is assigned to a location .

20. Production Transport Storage Handling Resource Master Data

21. Production Process Models • Combination of planning bill of material and routings • Features such as co-packing, product transformation, etc. • Attributes include: • Production cost • Duration • Productive time • Resource consumption • Material flow

22. Description of SNP Process • Model/Version Creation • To create a model name and assign it to at least one version. • Supply Chain Model Setup • Set up the supply chain model for SNP in the SCE • Assign the locations, products, resources, and PPMs to a model in the SCE • Add transportation lanes, allocate products, maintain quota arrangements.

23. Description of SNP Process • Release Demand Plan to SNP • This step can be carried out by either the demand planner or the SNP planner. • SNP Method Determination & Profile Settings • To determine the method to use for planning • Optimization • Heuristic planning • Supply & Demand propagation • Capable-To-Match planning • Safety stock planning • To make the settings in the appropriate profiles for each of the methods.

24. Description of SNP Process • Supply Network Planning Run • Execute planning based on the methods you chose. • Results: mid-term production & distribution plan • Interactive Planning • Review the plan in the interactive planning desktop. • You can also level resource capacity to resolve problems

25. Description of SNP Process • Release of Supply Network Plan to Demand Planning • Release the final supply network plan back to DP for comparison of the unconstrained demand plan to the constrained supply network plan. • Conversion of SNP Orders into PP/DS Orders • Convert supply network planning orders into PP/DS orders to make them available for production planning and detailed scheduling. • This is not part of SNP process. However, it is included in the cycle because this step is usually performed before running Deployment and Transport Load Building.

26. Description of SNP Process • PP/DS Planning • To create available production plan based on the planned orders generated in SNP • Deployment Run • To generate confirmed transport orders. • Transport Load Building (TLB) • TLB run groups the confirmed transport orders resulting from the Deployment run into transportation plans.

27. SNP Heuristics 50 • Net calculations • Consideration of delivery times • Incoming Quota arrangements • Single-sourcing • Multi-sourcing • Percentage distribution • Result: a list of procurement, production, and transportation orders 50 70 30

28. Processing of the Heuristic Run • Process Flow • Perform an Heuristic run • Level Capacity • Run deployment • Run TLB • Factors considered • Valid transportation lanes • Lead times • Quota arrangement • Procurement priorities • Calendars • Lot size rules • Scrap • Component availability • PPMs • Location-specific products • SNP demand profile • SNP supply profile • Demand profile • Other

29. Minimize total costs Maximize margins Liste Supply Chain Model APO • Flexible Constraint Definition • capacity constraints • material constraints • market constraints • …. Supply feedback toDemand Planning Sourcing Production & Purchasing requirements, Inventory levels Forecasts, Customers orders Optimization SNP Optimizer

30. Processing of the Optimizer Run • Process Flow • Run the Optimizer • Run deployment • Run TLB • Factors considered • Valid transportation lanes • Lead times • Transportation capacity • Transportation cost • Handling capacity • Handling cost • Production capacity • Production cost • Storage capacity • Storage cost • Time stream (location master data) • Lot sizing (min, max & rounding value) • Scrap • Alternate resource • Demand violation penalty costs • Safety stock violation penalty costs • Procurement costs • Shelf life • Cost multipliers • Location-specific products • Demand profile • SNP demand profile • SNP supply profile • Fixed PPM resource consumption • Other

31. Result of SNP Optimizer • which products will be produced, transported, procured, stored, and delivered (product mix) and their quantities • which resources, and which production process models (PPMs) should be used (technology mix) • the dates for production, transportation, procurement, storage, and delivery • the locations for production, procurement, storage, delivery, and transportation

32. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Capable to Match (CTM) • CTM approach • Demand prioritization • Supply categorization • Search strategies • Multi-site planning • CTM constraints • Production resources • Lot sizes • Due dates

33. Carry Out Customizing Activities Maintain Master Data Create Supply Chain Model Maintain CTM Profile Implement Results Execute CTM Planning Capable-To-Match Planning Process Distribute Supply Process Results in Interactive Planning Analyze CTM Planning Results Process Flow of CTM

34. Production Planning Detailed Scheduling • Purpose • To plan and optimize multi-site production while simultaneously taking into account product and capacity availability. • Result • Planned Order, Purchase Requisition

35. Maintain Master data Maintain PP/DS settings Transfer orders, requirements to PP/DS OLTP => PP/DS DP=>PP/DS SNP=>PP/DS Execution (conversion, confirmation, backflush…) Automatic planning Production Planning Run Model-Mix Planning Multi-level ATP Check Simulation Management by exception Transfer receipt elements and orders to the OLTP system Display and evaluate planning situation Interactive planning Create, change orders Create, change requirements Reschedule order in the planning board Use product planning table Optimize schedule Use push production Process Flow of PP/DS

36. Description of PP/DS Process • Maintain Master Data • Master data is necessary for PP/DS and in which sequence you have to maintain it • Maintain PP/DS settings • It can change and save the following settings • Propagation range • Strategy profile • Alert profile • Time zone • Layout

37. Description of PP/DS Process • Transfer orders, requirements to PP/DS

38. Transfer of Receipts and Requirements to PP/DS • Transferring Objects From a Connected OLTP System • Sales order • Production/process order • Manual reservation • Planned order • Planned independent requirements • Stocks • Classes and Characteristics • Transferring Receipts from Supply Network Planning • Transferring Demands from Demand Planning • Transferring Customer Requirements from APO Global ATP and an OLTP System • Creating Orders in PP/DS

39. Automated Production Planningand Optimization • Automatic Planning • Automatic planning immediately • Multi-level planning of products that use lot-for-lot order quantity or fixed lot-sizing procedures • Automatic planning in a planning run • To plan products using other lot-sizing procedures that are available as heuristics, such as period lot-sizing or purchase order optimization heuristics • Automatic Planning is triggered when • New requirements are transferred to PP/DS • Requirements are changed • Stocks are moved • Product master data is changed • The Production Process Model (PPM) is changed • Other changes relevant to planning occur

40. The Process ofAutomatic Planning immediately • The system attempts to cover the product requirement with existing stock or orders with appropriate dates and assigns available receipt elements to the requirement using pegging. If enough stock or orders exist to cover the requirements, planning is completed. • If not enough of the product exists, the system determines the quantity that is to be procured based on the requirement that is not covered, using lot-size calculation and taking into account the assembly scrap. • Using the type of procurement you defined in the product master, the system determines how the product is to be procured. • The system schedules the orders • If constraint violations occur, they are displayed as alerts. • Result • The availability check is carried out for all bill of material levels until suitable receipt elements have been found or created for all levels. The orders created during automatic planning are immediately transferred to the connected OLTP system so that up-to-date planning data is available in both systems.

41. Automatic Planning in a planning run • Specify which products and which locations are to be planned for a planning version in the appropriate fields. Additionally, propagation ranges are used to define the scope of planning. Only products that are contained in the propagation ranges are planned during the planning run. The propagation range can thus be used to restrict the level of planning.

42. Production Planning Run • Heuristics • Product heuristics • Detailed Scheduling heuristics • Repetitive Manufacturing heuristics • Model Mix Planning heuristics • Scheduling Functions • Deallocate • Reschedule • Fix objects • Undo fix an objects • Optimization • Transfer object to the customer exit APOCDPS0

43. Product heuristics • Change order manually • Planning standards lot • Planning deficits • Planning standard lots in 3 horizons • Part period balancing • Least-Unit Cost Procedure: External Procurement • Reorder point planning • Product planning (comp. according to low-level code) • Product planning (plan comp. immediately)

44. Detailed Scheduling heuristics • Schedule deallocated operations • Lead time reduction • Backlog rescheduling • Sequencing • Manual Sequencing • Merging orders on container resources

45. Repetitive Manufacturing heuristics • Heuristic for Multi-Resource Planning (Even) • In this heuristic, the resources are loaded as evenly as possible • Heuristic for Multi-Resource Planning (Primary) • In this heuristic, resources that are defined as primary resource (the preferred resource) are loaded first of all. Planned orders are not moved to the alternative resources until these resources are at full capacity.

46. Model Mix Planning heuristics

47. Scheduling functions

48. Optimization • Decision Variables • Resource Allocation • Alternative machines • Start dates • Objective Functions • Optimization of Setup Times and Setup Costs • To optimize the schedule for single resources based on the sum of the setup times and sum of the setup costs. • Optimization of Mode Costs • Mode costs = Fixed cost + Variable costs x Duration of activity • To optimize the schedule according to the sum of the mode costs for the activities • Optimization Delay Costs • Delay costs = Costs dependent on priority x Duration of delay • To optimize the schedule according to the costs that are associated with the delayed completion of orders or activities

49. Optimization • Optimization Method • Constraint propagation • Genetic algorithm • Constraints • Hard constraints • Soft constraints • Time constraints between Acitivities • Maximal • Minimal • Pegging constraints • Due Dates/Deadlines • Production Capacities • Calendar (Shifts and Breaks) • Sequence and Resource dependent Setup times • Breakable activities • Effectivity of PPM • Resource capacity (per Shift) • Resource utilization (per Shift)

50. Description of PP/DS Process • Display and evaluate planning situation • Requirements view • It can display all requirements for a product in all locations or for all products in one location. • Receipts view • It can display all receipts for a product in all locations or for all products in one location . • Product view • It can display the current stock/requirements situation for a product, as well as product master data, and days' supply information . • Order processing view • It can display all data relevant to an order, including header data, order status, product receipts, product requirements and operations, and pegging relationships. • Context for order • It can display the pegging structure for an order. This is a graphical presentation of all orders that are required to produce a finished product or an assembly for a specific requirement. • Product Planning table • It can display the current stock/requirements situation for a product, as well as the load on a production line. • Detailed scheduling planning board • It can display the resource schedule and order dates