- 1 - apo 02 - snp 00 supply network planning overview

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APO 02 - SNP 00Supply Network Planning

overview

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Course Objectives

Course objectives

Be aware of how APO covers the Supply Planning requirements within Danone

Understand the SNP concept

Understand the data models and navigation tools

Be able to navigate on your own

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Agenda

Course introductionSNP conceptsForecast releaseNetwork planning (DRP)Medium & Long term production planning (MPS)DeploymentPurchase finished productsIntercompanySubcontractingTools : Alert monitor & cockpit

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1.2 MIDDLE-TERM DEMAND

1.2 MIDDLE-TERM DEMAND

Strategic

3 years horizon

Tactical

1 Year horizon

Operational

3 weeks

Material requirement planning (MRP-R/3)

Supply Network Planning (SNP)

Demand planning (DP)

1.1 LONG TERM DEMAND

1.1 LONG TERM DEMAND

3.1 DISTRIBUTION REQUIREMENT

PLANNING


PLANNING



2.4 MID-TERM MASTER

PLANNING

2.4 MID-TERM MASTER

PLANNING

2.5 MATERIAL REQUIREMENT

PLANNING

2.5 MATERIAL REQUIREMENT

PLANNING

2.1 INDUSTRIAL and LOGISTICS VISION and STRAGTEGY

2.1 INDUSTRIAL and LOGISTICS VISION and STRAGTEGY

2.2 MATERIAL CONTRACTS

2.2 MATERIAL CONTRACTS

Very short-term

3 days

3.4 DEPLOYMENT

3.4 DEPLOYMENT

1.3 SHORT-TERM

DEMAND

1.3 SHORT-TERM

DEMAND3.2

SCHEDULING

3.2 SCHEDULING

3.3 MATERIAL RELEASE AND

USAGE

3.3 MATERIAL RELEASE AND

USAGE

How APO covers supply chain process

Production planning Detailed scheduling

(PPDS)

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SNP CONCEPTS


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copacking site

Supply Network & locationsconcept

production site

expedition centre

distribution centre

external customer

no product transformationno deliveries to the final customerf.e. : water seasonal storage « greniers »

site with product tranformationcomponents in BOM sourced from external suppliers

site with product transformationcomponents in BOM could be sourced in other internal sitef.e. : biscuits promo copacking sites

no product transformationdeliveries to the final customer

external supplier

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Master Data Location

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Master Data Product at location

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user environmentSNP planning books

Header (used for drill down)

Selection(available data)

selection profile (predefined data groups)

planning book(defines “lines” in planning book)

- data view (defines “columns” in planning book)

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Unit of measure

All DP environments are based on one UOM :

dairy : TON biscuits : TON water : KBT

this is the one and only available UOM on the aggregated levels

on the lowest (product) level the default UOM could be set per user per planning book (specific development to be switched on) to any UOM defined in the material master (carton, pallet,…)

on the lowest (product) level UOM could be manually changed to any UOM defined in the material master (carton, pallet,…)

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user environment SNP planning book concept

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user environmentSNP planning books

Planning area one planning area common for WBU (all data is stored in same database !) defines the UOM used in the planning books (see later) key figure : what ? Characteristics : what ?

Planning book what ?

Data view what ? Time bucket profile : what ?

Planning books used by SNP planners :

core_prod_ST/MT/LT for analysis of production planning on product level core_capacity for analysis of production line capacity

core_purch_ST/MT/LT for planning of purchased finished products

core_depl_xxxx for deployment purpose

core_mass_xxxx : planning books only used by jobs

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FORECAST RELEASE in SNP


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Supply Network Planning release of the demand plan in SNP

The Supply Planning Flow

The starting point of Supply Planning is the expression of DemandIn our case, almost all demand is based on ForecastForecast quantities are transferred as independent demand and are expressed at item level in a specific location

Elaborate

Demand

Plan

Run Distribution

Plan (long/medium term)

PlanPromotions

Productintroduction /

Life end

Forecast

Sales

Run Production

Plan (long/medium term)

DEMAND PLANNINGSUPPLY NETWORK

PLANNING

demand

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interface demand planning - supply network planning

Forecast data will be transferred on the level :

article (=SKU) per warehouse (Distribution Center - DC) total for all clients distributed from concerned DC biscuits and water : day (up to end w+3)

week (up to end m+4)month (up to end m+18)

only for future (period split = 1)

articlehierarchy

article (SKU)

product variant (PV)

forecast unit (FU)

umbrella brand

product brand

clienthierarchy

regionalforecast account

nationalforecastaccount

clientcountry

logistichierarchy

DC

totalcountry

DC

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Demand release in the network

copacking site

production site

expedition centre

distribution centre

independent demand (forecast) on DC

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Forecast consumption (1)

Elaborate

Demand

Plan Plan

PromotionsProduct

introduction /Life end

Forecast

Sales

Run Distribution

Plan

Run Production

Plan

DEMAND PLANNINGSUPPLY NETWORK PLANNING

demand

…..

R/3

APO

shipments

…..

orders

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forecast consumption (2)consumption by orders

No Forecast consumption : all planning will be based on forecast, no order impact mostly used for all WBU, because planning cycle is much longer than order cycle

(ex. dairy : orders still arrive on delivery date)

Forecast consumption : orders « consume » forecast for a predefined period when they exceed the forecast

this strategy could occasionally been used for CBU ’s with a long order lead time.

Forecast « replacement » : forecast will be replaced by order book,during predefined horizon. This option will only be used for specific articles.

for biscuits : e.g. export articles produced on orders horizon = 3 weeks for dairy : e.g. : specific private label products horizon = 1 week for water : e.g. : export clients not in VMI horizon = 8-12 weeks

Forecast « corrections » (in DP) : forecast will be corrected based on order book.E.g. : at the end of w-1, order book contains half of the estimated forecast for week w0

this will be managed in DP mainly for articles with low revision frequency

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forecast consumption (3)forecast update by input/output transactions

Goods issue and Production Transactions are real time interfaced with R/3

« goods issues » forecast consumption => stock is reduced when goods issues is executed => forecast is reduced at same moment by the shiped quantity*

remark : also « production orders » influence stock on line => stock is increased when goods are confirmed in production => plan order remaining quantity to be produced is reduced by production

confirmation

* forecast will only be reduced at the current day

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Product master data - forecast consumptiondemand view

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NETWORK PLANNINGDRP


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Master Data Transportation Lanes

DC 0010

DC 0012

factory 0007

TLB profile

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supply plan on a distribution center

copacking site

production site

expedition centre

distribution centre


Requested receipts

Receipts requested(= distribution receipts SNP)

stock

Demand- forecast- distribution demand- dependent demand

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Network planningconcept

copacking site

production site

expedition centre

distribution centre


Requested receipts

D1 D2 D3 D4 D5 D6 …Total Demand 200 300 200 250 250Total Receipts 250 300 200 250 250Stock 100 150 150 150 150 150

stock

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SNP networkexample

Product : 795

planning book : article 795 on DC 0010

planning book : article 795 on factory 0007

safety stock in DC : 10days

DC 0010

DC 0012

factory 0007

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Supply Planningmanaging projected stocks

GoodsReceipt

GoodsDemand

Stockon-hand

time

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Supply Planning processSNP heuristic (network calculation)

R R RTime

Max. level

Safetystock

Stock

Reorderpoint

Processes : lot for lot : supply follows demand (used for all WBU) fixed lot size fixed period reorder point / supply coverage

Constraints used for Danone:lead timemin/max lot sizerounding valuesafety stock

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Distribution requirement planplanning constraints for Danone

no multisourcing : one article/DC combination will be sourced from one location

sourcing network will be considered as static : changes are possible but not planned or « optimised »

minimum rounding profile in regular all inter site shipments will be organised with one pallet minimum for low rotating articles (mainly dairy) a pallet layer is accepted as minimum

(to be specified per article)

multiple rounding profile in regular multiples of full pallets low rotating articles for dairy : also multiples of layers for specific articles

no inventory optimisation is considered in a first phase no warehouse capacity management push/pull strategies are only available on short term deployment

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Product master data lot size view

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Medium & Long term production Planning (MPS)


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supply plan on a plant

copacking site

production site

expedition centre

distribution centre


stock

stock

requested receipts

Planned orders


Receipts requested(= distribution receipts SNP)


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Master planning (MPS)Resource load

All planned orders are totalised : in the production plant per article from all DC ’s per period

production plan model (PPM):puts the demand on a resource

resource groups receives the load

= total of all the planned orders

300 : Planned order art. A for week 2

production site

100(from DC1 for week 2 )

200(from DC2for week 2 )

production line (resource)

PPM

load

timeweek 2

300

art A

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Resource definitionAPO concept

A resource in APO represents a production line different resource types could be defined, depending on the module :

SNP : bucket resources : manual master data entry PPDS : single and multi resources : automatic upload, based on R/3 master data

Calendar W8 : always open

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ResourceUOM issue

for SNP bucket resources, UOM should be defined : time UOM (Hours) : represents most relevant business approach, but there is no possibility to

totalise two production lines with different output and independent capacity planning :

example : Evian has two production lines, different output (bottles/hour), but they could be independently planned (line 1 : 3 shifts/day , line 2 : 2 shifts/day)

mass UOM (Tons or Kbottles) : is less transparant for planner, and the output should be equal for all products.

example : a biscuit production line, produces 2 types of biscuits : biscuit A is produced at 1Ton/H, biscuit B is produced at 2Ton/H. The output of the production line is defined in Tons ; it should be defined as a weighted average of both products.

EXAMPLE with UOM MASS

line capacity 15 T (5T average/shift - 3

shifts)

prod A 1000 PC = 1T capacityprod B 1000 PC = 2 T capacity

plan order A : 1000 PC1T resource load

EXAMPLE with UOM TIME

line capacity 24H (3 shifts)

prod A 1000 PC = 1 H capacity conso (average output)

prod B 2000 PC = 1 H capacity conso (average output)

plan order A : 1000 PC1 H resource loadZFACTORS transaction

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Resourcecapacity definition

enter the number of shifts you want to plan the system will make the conversion to the capacity of the resource, based on the zfactors table remark 1 : in order to validate the entry, you should leave the transaction remark 2 : the unit SH could be interpreted by the local CBU

Enter number of shifts

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Production process model

Activity : production 2

Activity : production 1

Activity : set up

componentsresources

IN OUT

Production process XYZ

APO PPM concept

PPM application for DANONE

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Production process modelAPO view

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Use of SNP resources and PPM models for Danone

PPM models could be defined for several purpose :

standard resource : resource related to physical production line

general resource : resource related to group of production lines business concept :

situation with multiple production lines with similar products planner prefers to plan them as one general production line each of the underlying production lines could be planned individually

see next slide for APO concept

family resource : resource related to families business concept :

planner wants to group SKU’s in same family planner plans families in specific time buckets (w)

see next slide for APO concept

labor resource : resource for labor planning business concept : labor pool (f.e. pool of packaging labor) is planned per week consider “labor pool” as a standard resource ; define consumption in man.h./unit in PPM

Family 1 :vanilla

Family 2 :chocolate

production line 1

production line 2

SKU1(line 1, fam 1)

SKU2(line 1, fam 2)

SKU3(line 2, fam 1)

SKU4(line 2, fam 2)

general resource(line 1 + line 2)

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general resourceconcept

business concept : situation with multiple production lines with similar products planner prefers to plan them as one general production line each of the underlying production lines could be planned individually

example : 3 actimel filling machines, all of them could produce 100g format in different perfumes Prince Fourré production lines : line 7 (standard rolls) line 8 (standard rolls & pocket) 2 EVIAN PET lines in Evian factory, able to produce all 1,5 l SKU’s

APO concept : define UOM (TON is recommended) for each line enter capacity in planning book CORE_CAPACITY level on general resource

production line 1

production line 2

general resource(line 1 + line 2)

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general resourceexample

In plant 0031 two production lines produce the same type of products and are considered as one resource for medium & long term planning :

0006_WROAL1314

these resource is defined in tons, because output is different on each of the production lines :

0006_WROAL1314 - line 1 (WROAL13) : 35,640 T/H 0006_WROAL1314 - line 2 (WROAL 14) : 36,564 T/H

Total capacity is calculated based on :- number of shifts- output rate in zfactors

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family resourceconcept

business concept : planner wants to group SKU’s in same family planner wants to plan family in specific time buckets (weeks)

example f.e. : 3 dairy yohourt filling lines : all 3 lines can fill 100g packs, only one can fill 400g family pack f.e. : Petit ecolier lines : 2 lines can produce milk & fondant chocolate, one can produce other

perfumes f.e : 2 PET lines in Riardo : can produce the same products but at a different capacity rate

APO concept : define each family as a resource define in PPM :

consumption of concerned physical production line consumption of concerned family resource

plan capacity on each of the resource assure manually consistency : total capacity of the families = capacity of physical resource

level each of the family resource individually ; analyse afterwards total on physical resource

Family 1:vanilla

Family 2:choc

SKU1(line1,fam 1)

SKU2(line1, fam2)

SKU3(line2, fam1)

SKU4(line2, fam2)

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family resourceexample

In plant 0007 one specific family on the production line WP1 : Products on this production line should be grouped and planned together (f.e. 1x/2weeks) For this purpose an extra resource has been defined : 0007_WP1_POLOMACENE

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Family resource PPMexample

The PPM for Article 867 has 2 activities standard production activity on resource 0007_WP_1 “calendar” activity, representing the family on 0007_WP1_POLOMACENE

Capacity consumption is defined on 2 resources :

WP1 : production lineWP1_POLOMACENE : family

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Master planning (MPS)Resource load

All planned orders are totalised : in the production plant per article from all DC ’s per period

production plan model (PPM):puts the demand on a resource

resource groups receives the load

= total of all the planned orders

300 : Planned order art. A for week 2

production site

100(from DC1 for week 2 )

200(from DC2for week 2 )

production line (resource)

PPM

load

timeweek 2

300

art A

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MPS Planning Capacity evaluation

Cap

acit

y lo

ad

Time

Resource capacity

time bucket

Resource x(production line)

Over Capacity

Resource load

Backward leveling

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Capacity planningdairy

Check if total capacity matches with resource load.

Modify eventually capacity on one of the production lines in the general resource

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Capacity planningbiscuits / water

Check if total capacity matches with resource load.

Launch eventually automatic capacity leveler as a first planning optimisation, before manual plan modifications

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Product planningbiscuits

Planning book :Core_Global_stock

Selection :all articles on one line / all locations

analyse the proposal of SNP plan run and the leveler. Enter new or modify existing plan orders with continuous check of the constraints :

- total load of the line. Check also total load in the capacity planning book (see former slide)

- stock coverage of the product

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Family planning

Products 854 and 855 belong to a family with low volume, planning for these SKU’s is grouped every 3 weeks.

- define calendar open every 3 weeks for the family resource 0007_WP_Prince_ovoce

- level on this family resource

- orders for the concerned products are automatically put on the open weeks

Products 854 and 855 belong to a family with low volume, planning for these SKU’s is grouped every 3 weeks.

- define calendar open every 3 weeks for the family resource 0007_WP_Prince_ovoce

- level on this family resource

- orders for the concerned products are automatically put on the open weeks

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Multilevel supply plan process

external customer

external supplier

3° stepaggregation of demand to production sites

2

4

1

3

2° stepproduction planning on dependent copacking sites

4° stepproduction planning on production plants

1° stepaggregation of demand to copacking and production sites

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Planning processsummary (biscuits/water)

Run network SNP heuristic Run factory SNP heuristic (outside offset period)

evaluate product plan in core_prod_MT evaluate capacity load in core_capacity ==> make capacity modifications

==> run leveler

make manual modifications (for next period, entering in offset) analysing : stock per product in core_global_stock plan per product in core_global_stock capacity load of the line in core_capacity

convert w+1 to PPDS (Wednesday morning)

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SNP <-> PPDS

SNP = long/medium term planning , PPDS = short term planning SNP : until end of M+6 => one order per week

until end of M+18 => one order per month

PPDS : 16 days rolling for dairy => correct start/end timeend of next week for biscuits

PPDS : finite capacity planning

Cap

acit

y lo

ad

Time

Resource capacity

time bucket

Over CapacityBackward

leveling )

Resource load

SNP : bucket planning

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DEPLOYMENT


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Deployment concept

copacking site

production site

expedition centre

distribution centre

DC1

plant A


stock

Demand from plant ADemand from DC1

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Deployment master data

Push strategy (define push strategy = X) define push horizon on factory = max horizon where (expected) stock will be included for

deployment (if also included in deployment horizon*)

Pull strategy horizon (define push strategy= blank) define push horizon on factory = max horizon where (expected) stock will be included for

deployment (if also included in deployment horizon) define pull horizon on factory = max horizon where demand will be fulfilled at due date

(if in deployment horizon* and supply is available)

Combined Push/Pull horizon (define push strategy = P) define push horizon on factory = max horizon where (expected) stock will be included for

deployment (if also included in deployment horizon) define pull horizon on factory = max horizon where demand will be fulfilled immediately

(if in deployment horizon* and once supply is available)

* deployment horizon = horizon used by job for daily deployment plan calculation

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Deployment master dataproduct master - SNP2 view

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Deployment process Available to deploy =stock and plan orders

D+1

Demand from DC

on factoryresult of SNP run =

plan distrib. receipts

* D+1 is depending on local situation

D+0

Available to deploy at D+1

STOCKD+0

PRODUCTIONORDERS

PLANORDERS

Deployment calculation for D+1*based on “available to deploy quantity”

Deployment based on

daily buckets !

Deployment based on

daily buckets !

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shortage managementfair share rules (1)

Fair share A: percentage repartition by requirements

base concept used by all BU

Fair share B: percentage of target stock

not used

Fair share C: percentage repartition by quota arrangement

used for manual shortage mgmt

Fair share D: repartition by priority

not used

Fair share A: percentage repartition by requirements

base concept used by all BU

Fair share B: percentage of target stock

not used

Fair share C: percentage repartition by quota arrangement

used for manual shortage mgmt

Fair share D: repartition by priority

not used

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Fair share rules (2)

Fair share on two levels : - National level (between CBU’s)

- Between CBU’s clients (not in APO)

Total demand 100available : 60 ======> all DC’s receive 60% of their demand

DC 1demand : 40

DC 2demand : 60

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Fair share rules (3)

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Deployment process

Requirement plan calculated in network planning

Deployment runcheck demand vs availability

apply fair share

TLB runtransport truck building

R/3 Execution

Planned demand

Confirmed demand

TLB Confirmed demand

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Deployment run

DC

factory


distribution receipts(purchase requisition)

Distribution demand

stock

Plan order

stock

forecast

Production order

Confirmed distribution demand (=> TLB)

confirmed distribution receipts (=> TLB)

forecaststock

stock

deployment run

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Deployment in APO

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Deployment in APOTLB view

The result of the deployment run (overnightjob), is the input of the TLB view. Here the deployment planner will built the trucks. He could launch the automatic TLB run (eventually with deployment anticipation for truck completion)*

Example:- truck capacity = 10 pallets- transport lead time 0007->0010 = 1 day

*an investigation is currently made on truck optimisation in function of multiple constraints as : min and max stock coverage in DC, min lot size per layer or per pallet,…..

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Deploymentmodifications

Evaluation stock in DCcore_storage_ST

Evaluation stock in plantcore_depl_ST

Eventually modifications could be made in the TLB view (manually modifying or creating STO order lines, manual truck creation). After saving, the results could be analysed on the plants in two available planning books.

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Deployment processindicative deployment

Deployment calculation is based on result of SNP plan. If you do not exactly ship what is required by the DC (pure pull scenario), two scenario’s are possible :

- push : enlarge the deployment horizon and the deployment run will give an indication of the volumes to be shipped in the near and eventually long future

- pull with modifications : if these modified volumes have to be known in advance (because f.e. they are important or this plan is the indication for a just-in-time deployment), the result of the SNP heuristic could be modified in an offset horizon (that will not be recalculated by the heuristic)* The deployment run will deploy, following the modified planned distribution receipts. * an investigation is currently made to analyse how the distribution demand could be automatically optimised in

function of a list of constraints in the network (f.e. warehouse capacity, costs, min/max stock coverage,….)

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Deployment processindicative deployment plan

Make modifications in distribution demand and check stock in all locations.

The offset should be set that this period will not be recalculated, but managed by alerts.

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Deployment processQuarantaine management : definitions

Definition hard quarantine : goods could not leave the factory for the DC

before hard quarantine is cleared (also for Slovakia deliveries)

soft quarantine : goods could not leave for client delivery before soft quarantine is cleared.

Constraint for APO : Hard quarantine is fixed in APO at xx h for all products (no exceptions) Business principle will be designed that there is no possibility in APO planning to send products

under hard quarantine to a DC

it will only be possible to break this rule in R/3 (manual non planned shipment)

soft quarantine is not managed in APO

Soft quarentaineAvailable stock Hard quarentaine

Available stock Stock in quality inspection*

Available stock Stock in quality inspection (CF)*

R/3

APO

business

*different status from “blocked stock” (status CI in APO)

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Deployment process with quarantineavailable to deploy = stock

D+1

Demand from DC

on factory

D+0

stock in hard quarentine

ATD = total stock (in & out Q)

Soft Q

Soft Qstock in hard quarentine

Deployment calculation for D+1*based on “available to deploy quantity”

In production

In production

Deployment based on

daily buckets !

Deployment based on

daily buckets !

available

available

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Deployment including quarentineexample (1)

D-1 D+0 D+16h 8h 10h12h14h16h18h20h22h0h 2h 4h 6h 8h 10h12h14h16h18h20h22h0h 2h 4h 6h 8h

SEDLEC

Client deliverySedlec client goods issue 13h 5hSedlec client delivery preparation

Sedlec reciept 8h 17hBenesov goods issue to Sedlec 22h

production order + quarentaine 8h

<-- 8h : deployment run for D+2

D-1 D+0 D+1 D+20h 6h 8h 10h12h14h16h18h20h22h0h 2h 4h 6h 8h 10h12h14h16h18h20h22h0h 2h 4h 6h 8h 10h12h14h16h18h20h22h0h 2h 4h 6h 8h 10h12h14h16h18h20h

BRNO <-- 0h : forecast

Client deliveryBrno client goods issue 13hBrno client delivery preparation

<-- 12h : distribution receiptBrno reciept 8h 17hBenesov goods issue to Brno 20h

<-- 12h : distribution demand

production order + quarentaine 8h

deployment plan calculation <-- 8h : deployment run for D+0

demand calculation for DC delivery <--5h-13h : demand calculation

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Deployment including quarentineexample (2)

HARD QUARENTAINE : Deployment run will be launched at D+0 8:00

!! prerequisite : quarantine is for all products fixed at 12h (no possibility to differentiate between products)

==> consequence : no product will leave factory before hard quarantine is cleared

!! prerequisite : production after 8:00 will stay in the factory until D+1 20:00

==> consequence : there could be 36 hours stock due to quarantine

If shortage appearsthen fair shareanalysis is applied.

• analysis of actual stock in DC (incl. soft quarantine)

+ confirmed planned dist.reciepts

•analysis of forecast for D+0 and D+1

•calculation of overnight transferrequirements (=APO Plan DistReciepts)

•analysis of total stock available for deployment (at 20:00) in Benesov (= total physical stock at 8:00)

Deployment run at 8:00

SNP demand run at 5:00

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Summary : Deployment for Danone application in function of business case

calculate transport only based on available stock. Suitable for :

pull/push dairy

with quarantine

with immediate execution (very short lead time between calculation and execution)

pull biscuits with (almost) immediate execution or possibility to stock in factory

with indicative deployment plan (auto/manual) and/or manual modifications in TLB

push biscuits with (almost) immediate execution

depending on factory stock capacity, if time delay is acceptable

remark : there is no indicative deployment plan available based on the push deployment run

include prod/plan orders in extrapolated situation. Suitable for :

pull/push dairy for WE (or other situation with longer lead time between calculation and execution)

remark : quarantine is not included in prod/plan order)

pull biscuits for WE (or other situation with longer lead time between calculation and execution)

with indicative deployment plan (auto/manual) and/or manual modifications in TLB

push biscuits if indicative deployment plan is required on LT

remark : SNP calculation could only be made once a day => stock is staying max for one day in factory

only possible if full push scenario is applicable

recommended scenario’s

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PURCHASEFINISHED PRODUCTS


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Purchasing FPmaster data

Supplier will exist as a location in APO, product/loc should manually created transportation lane will automatically be created, based on the contract lead time of the contract will be applied on the transportation lane the SNP heuristic will create purchase requisitions these purchase requisitions could be manually modified during an offset horizon (where

the SNP heuristic will not recalculate) the purchase requisitions have to be converted manually in R/3* APO and R/3 are integrated with purch.req. and purch.orders

* an investigation will be made if the conversion could be done automatically for a predefined horizon

DC 0010

DC 0012

Supplier 210004329

R/3 contract will create transportation lane

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Purchasing FPAPO

Make modifications in distribution demand and check stock.

The offset should be set that this period will not be recalculated, but managed by alerts.

EXPORT TO EXCEL FILE and send to supplier

EXPORT TO EXCEL FILE and send to supplier

The Purchase requisitions have to be converted into purchase orders in R3 with the transactions ME58 and ME59

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INTERCOMPANY


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APO will become the leverage to optimise an integrated European supply chain

All products, factories, warehouses,…. will be in one system ! APO ignores boundaries and companies !

Manufacturer DC

Manufacturer Plant

Customer DC

Supplier Plant

APO biscuits, water or dairyenvironment

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Intercompany process : version 1 traditional process managed by client

requirements1. Forecast calculation2. Requirement calculation. including transportation constraints

3. Production planning4. Production execution.

6. Transportation7. Execution requirements

5. Shortage management

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Intercompany process : version 2 optimised supply chain management : VMI based

requirements1. Forecast calculation2. Requirement calculation. including transportation constraints

3. Production planning4. Production execution5. Shortage management.

5. Transportation6. Execution

Delivery confirmation

Shortage information

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Intercompany process constraints

Intercompany process should always be based on a pull processor combination push/pull

a distribution plan optimisation, based on min/max stock levels of the client DC is recommendable. This optimisation could actually only be executed manually.

4 scenario’s : only client in APO

scenario = purchasing finished products process

only supplier in APO client sends forecast to supplier, uploaded in supplier’s DP orders, entered in R/3, replace forecast on fixed horizon

supplier and client in APO, deployment organised by client scenario = pull with indicative deployment plan

supplier and client in APO, deployment organised by supplier scenario = standard scenario for internal planning

- 81 -


SUBCONTRACTING


- 82 -


Subcontractingscenario 1

Subcontracting is considered as an activity in the plant that will be supplied by the subcontractor : in this plant both a purchase order (for a subcontracting service) and a production order will be defined.

This process can only be managed in PPDS : for this reason the production horizon for subcontracted products will be defined at 999 days. (see PPDS training)

Plant Subcontracto

r

Purchase order

10 .....................20 .....................30 .....................

Item CategoriesItem Categories

L Subcontracting

Components

delivery

Finished product delivery

Production order

- 83 -


Subcontractingscenario 2

In some situations it might be recommendable to define a representing “virtual” plant for the subcontractor:

if deployment has to be organised if stock in subcontracted plant has to be managed in APO if subcontractor receives or ships goods from/to different plants of the CBU if the subcontractor does direct client deliveries

in this situation the PPDS plan run calculation will be followed by a SNP heuristic run, in order to calculate the requirements of the components of the subcontractor on the DC.

Plant 1Subcontractor

PPM

Virtual

plant

Stock Transport order10 .....................20 .....................30 ..................... Components

delivery2

Purchase order 10 .....................20 .....................30 .....................Item CategoriesItem Categories

L Subcontracting

Components transfer posting

Finished product tranfer posting

4

3

1

SNP PP/DS

Finished product tranfer

5

- 84 -


TOOLS


- 85 -


Alertsconcept

Alerts are available : in planning books in alert monitor

several alert types are defined. They are calculated in background and could be presented in alert monitor.

The alerts in the planning book are interactively calculated. The alerts in the alert monitor are calculated in background and could be presented in alert monitor or the supply chain cockpit.

every user could define an alert profile for his personal use

- 86 -


Alert monitorset user settings

- 87 -


Alerts in planning book

- 88 -


Alerts inAlert Monitor

- 89 -


Details on SNP Alertson products and resources

Alert on safety stock shortfall

alert will appear when stock gets below safety stock

Alert on shortage (backlog)

alert will appear when shortage occurs

resource overload alert will appear when resource overload is over 5%

insufficient resource utilisation

alert will appear when resource is utilisation is lower than 70%

- 90 -


Supply chain cockpit

- 91 -


Models and Planning versions

PPM

Resources

PPM

Resources

Master Data for

PP/DS

Master data in APO

Active model 000

Locations

Simulation

model 1

R/3

Planning version 1

version-dependent master

data and transaction data

Planning version 1



Simulation

model N

PPM

Resources

Active planning version 000



Active planning version 000



Planning version N



Planning version N



Products

- 92 -


Model/versions

Plants

DCs

Resources

Products

PPMsModel 1

A version is always related to amodel.

A model may havemore than one planning versions,for simulation purpose

A planning version will use themaster data of the model towhich it is associated and alsothe related transactional data

Master Data transferred from R/3 is automatically assigned to model000.Only one version is LIVE in the systemAll other versions are for simulation purposes Model 2

- 93 -


Planning book tricks & tips

display note & display detailsdrill down and dependent dataheaderuser settings

hide decimals UOM

user dependent selection list

how to define selection profiles See training document on

navigation tools

See training document on

navigation tools

- 94 -


Course conclusion

QUESTIONS?

- 1 - apo 02 - snp 00 supply network planning overview

Documents