Master Data for SCM (1)Master Data for SCM (1)

Master Data for Demand Master Data for Demand Planning & Fulfillment Processes Planning & Fulfillment Processes

EGN 5623 Enterprise Systems OptimizationEGN 5623 Enterprise Systems Optimization(Professional MSEM)(Professional MSEM)

Fall, 2012Fall, 2012

Master Data for SCM (1)Master Data for SCM (1)

Theories & ConceptsTheories & Concepts

EGN 5623 Enterprise Systems OptimizationEGN 5623 Enterprise Systems Optimization(Professional MSEM) (Professional MSEM)

FAll, 2012 FAll, 2012

Master Data for SCM (1)Master Data for SCM (1)

Master Data in Demand PlanningMaster Data in Demand Planning

EGN 5623 Enterprise Systems OptimizationEGN 5623 Enterprise Systems Optimization(Professional MSEM) (Professional MSEM)

Fall, 2012Fall, 2012

Master Data OverviewMaster 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.

Master Data OverviewMaster 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.

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

Location Types in SAP APOLocation 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.

Location Types in SAP APOLocation Types in SAP APO

DP Function in SCM (review)DP Function in SCM (review)

THEORY AND PRACTICE OF ADVANCED PLANNER AND OPTIMIZER IN SUPPLY CHAIN DOMAIN by Sam Bansal

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

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

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

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

Overview Master Data and Overview Master Data and Application in DP and Sales (review)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.

Overview Master Data and Overview Master Data and Application in DP and SalesApplication in DP and Sales

Process for Demand PlanningProcess for Demand Planning

Demand Planning ProcessDemand 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

Planning Levels and Consistent Planning Levels and Consistent PlanningPlanning

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”.

Data Structure for Demand PlanningData Structure for Demand Planning

Planning Levels and Consistent Planning Levels and Consistent PlanningPlanning

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.

Planning on Aggregated LevelPlanning on Aggregated Level

Automatic DisaggregationAutomatic Disaggregation

Demand Planning Structure Demand Planning Structure OverviewOverview

Demand Planning Structure Demand Planning Structure OverviewOverview• 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).

Planning Object Structure and Planning Object Structure and Planning AreaPlanning Area

Planning Object Structure and Planning Object Structure and Planning AreaPlanning Area

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

Time BucketsTime BucketsIn 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.

Data Storage Bucket ProfilesData Storage Bucket Profiles

Active Characteristic Value Active Characteristic Value Combinations (CVC)Combinations (CVC)

Entities for Life Cycle ModellingEntities for Life Cycle Modelling

Settings for Life Cycle Planning Settings for Life Cycle Planning ExampleExample

PromotionPromotion

CVC for the Use of DP-BOMsCVC for the Use of DP-BOMs

Release of the Demand PlanRelease of the Demand Plan

Process for Forecast after Process for Forecast after ConstraintsConstraints

Structure of the Transfer to SAP Structure of the Transfer to SAP ERPERP

Master Data for SCM (1)Master Data for SCM (1)

Master Data in Fulfillment Master Data in Fulfillment ProcessProcess

EGN 5623 Enterprise Systems OptimizationEGN 5623 Enterprise Systems Optimization (Professional MSEM) (Professional MSEM)

Fall, 2012 Fall, 2012

Process for Order FulfillmentProcess for Order Fulfillment

Order Fulfillment OverviewOrder Fulfillment OverviewOrder 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.

Order Life CycleOrder Life Cycle

Tasks during Sales Order Tasks during Sales Order EntryEntry

Categories and Attributes of a Categories and Attributes of a Supply Chain (review)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

Business EventsBusiness Events

Default Assignment of Strategy to Default Assignment of Strategy to Requirement ClassRequirement Class

Location Substitution with Location Substitution with /Without Stock Requisition/Without Stock Requisition

Transaction for Condition Transaction for Condition TechniqueTechnique

Master Data for SCM (1)Master Data for SCM (1)Master Data in Demand Planning & Master Data in Demand Planning &

Fulfillment Processes Fulfillment Processes

SAP Implementation SAP Implementation

EGN 5623 Enterprise Systems OptimizationEGN 5623 Enterprise Systems Optimization(Professional MSEM) (Professional MSEM)

Fall, 2012Fall, 2012

Master Data, Model, and Master Data, Model, and Version Version

SAP ERP Transactions for SAP ERP Transactions for Independent Demand ConfigurationIndependent Demand Configuration

Exercises:Exercises:

1. Create plant location 2. Create distribution center locations3. Create vendor locations4. Create customer locations5. Create finished product master6. Create raw materials master 7. Create resources master8. Assign plant, DC, vendors, customers, finished product, raw

materials, and resources to active model