sap s/4hana enteprise management - · pdf filesap s/4hana enteprise management - logistic ......

Juergen Helmle SAP SE – GermanyMarch 22th 2017

SAP S/4HANA Enteprise Management - Logistic

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Public

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Public© 2015 SAP SE or an SAP affiliate company. All rights reserved.

SAP’s Next Big Thing

R/2

1979

R/3

1992

ERP

2004 2015

S/4HANA


SAP S/4HANAOur Next-Generation Business Suite

SAP S/4HANA Enterprise Managementbuild the next-generation business suite

» Innovative in-memory Database» New architecture and data models» Renewed applications» New UI technology» Cloud & on-premise deployment models» Natively integrated

SAP S/4HANA is a new product line (it is not a legal successor of any SAP Business Suite product)

The classical SAP Business Suite & SAP ERP is a separate product line and will still be available.


Complex business processesLarge organizations can spend between40% and 80% of their time on non-value-added activities

(BCG, Complexity Report)

Complex technology73% percent of executives said thecomplexity of data is the largest ITchallenge

(Forrester, 2013 report)

Where does complexity hide in enterprises?

Complex decision making“Large global organizations havecreated so much complexity thatbusinesses often struggle to bring goodideas to the marketplace profitably.”

(McKinsey, 2014)

Scattered information Technology limitationBatch orientation

10.2% or $237B*of profits lost by top 200 global companies due to hidden costs of complexity

*Global Simplicity Index, 2013


Extreme Variability Rapid InnovationIndividualization

Challenges from the market today


The digital economy – Customized orders- lot size 1

The end to end digitized enterpriseis a mandatory consequence

[#/€]

timeDigital Economy

# of lots# of invoices

value/size of lotsvalue/size of invoices

Unit of One


Live Manufacturing Planning with the MRP Run

Sales Production

Inventory

Purchase Request Production RequestTransfer Request

Flexible MRP Run

Purchase

Analyze the currentsituation based on real-time information andfocus on singleshortages

Time

Live Supply, Demand @ Inventory

MRP Controller


Live Capacity Planning with PP/DS in S/4HANA

Sales Production

Inventory

Purchase Request Production RequestTransfer Request

Flexible MRP Run

Purchase

Analyze the currentmaterial and capacitysituation based on real-time information andcomprehensive planningfeatures inPP/DS@S/4HANA

Time

Live Supply, Demand, Inventory @ Capacity

MRP Controller


Business drivers for S/4 HANA

Real time analytics at the lowest levelof granularity on primary transactionaldata, without aggregates

Increased business user productivitywith beautiful, role-based UIs andavailability on multiple devices

Optimized system landscape andreduced number of systems givescustomer high performance withlower TCO

Increased system throughput byeliminating data redundancies andreduced data footprint

Internet ofThings


SAP S/4HANA – The Customer Has The Choice

SAP S/4HANAOn-Premise Edition

SAP S/4HANACloud enterprise edition

Subscription licensing withdeployment in the private cloud,maintained by SAP

Traditional licensing withcustomer control of deploymentand maintenance

SAP S/4HANA on-Premise is alreadyavailable with the combination ofSuite on HANA with an exchangeinnovation add-on for Simple Finance.As of Q4/2015 with integrated SimpleLogistics.

SAP S/4HANACloud marketing edition

Cloud project services edition Subscription licensing withdeployment in the private cloud,maintained by SAP

The scope of this solution is close to afull ERP scope (Business All in Onescope) however focusing onsupporting standard scenarios.

Providing simplified key scenarios with aclear focus and priority on the cloudqualities, which are guaranteed across allUIs and all processes to ensure that atrue SaaS solution is offered.


SAP S/4HANA 1610 – “large version” (incl. all LoB recommended solutions**)

SAP S/4HANA MARKETING ANDCOMMERCE

SAP S/4HANA HUMAN RESOURCES SAP S/4HANA MANUFACTURING SAP S/4HANA SUPPLY CHAIN

SAP S/4HANA SALES

SAP S/4HANA FINANCE

SAP S/4HANA SERVICE

SAP S/4HANA SOURCING &PROCUREMENT

SAP S/4HANA ASSET MANAGEMENT

Digital Core Enterprise Management

SAP S/4HANA RESEARCH &DEVELOPMENT

Products

Suite

Products

Suite

INDUSTRIES

• Supplier Collaboration• Business Network• Guided End-User Buying• External Workforce Management

• Core Human Resources And Payroll• Talent Mgmt.• Time and Attendance Mgmt.• Human Capital Analytics

• Asset Operations and Maintenance*• Environment, Health, and Safety

• Enterprise Portfolio and Project Mgmt.• Commercial Project Mgmt.• Compliant Product Lifecycle Mgmt.*

• Service Mgmt. *• Service Master Data Mgmt.*• Service Parts Mgmt.*• Service Agreement Mgmt.*

• Maintenance Mgmt. • Product Development and ProjectControl

• Production Engineering

• Financial Planning and Analysis• Accounting and Financial Close• Treasury Mgmt.• Receivables Mgmt.• Invoice Mgmt. and Accounts Payable

• Accounting and Closing Operations• Accounting• Cost Mgmt. and Profitability

Analysis

• Time Recording• Operational Purchasing• Collaborative Sourcing and Contract Mgmt.• Invoice and Payables Mgmt.• Supplier Management• Procurement Analytics

• Production Orchestration andExecution

• Quality Mgmt.

• Inventory and Basic WarehouseMgmt.

• Production Planning

• Order and Contract Mgmt.

• Sales Planning and PerformanceMgmt. (ICM)

• Billing and Revenue InnovationMgmt. (BRIM)

Cloud for ServiceService Engagement Center

S/4HANA Marketing CloudCloud for CustomerCommerce

Cloud for Sales

• Extended Warehouse Mgmt.• Advanced ATP

*(partially) Compatibility Scope

• Integrated Business Planning• Global Batch Traceability• Extended Warehouse Mgmt.• Transportation Management

• Responsive Manufacturing (ME, MII,QIM, VE)

• Production Operations (MII, QIM)• Digital Operations for Manufacturing

(MII)

• Digital Asset Network • Digital Operations for R&D

• Governance, Risk, and Compliancefor Finance

• Constrained production planning• Production Scheduling

**For details on Suite Solutions per LoB – see respective detail slides


Logistics

Logistics Execution (LE)

SAP S/4HANA Enterprise Management – logistics

Enterprise Management

Product Lifecycle Management(PLM)

Materials Management (MM)

Quality Management (QM)

Sales and Distribution (SD)

Financials

HCM

ü SAP S/4HANA EnterpriseManagement logistics comprisesgenerally the functionalitycovered by SAP ERP 6.0logisticsü Major simplifications in

- Inventory management- Material requirements planning- Capacity planning- Sales and distribution- Procurementü Complemented by capabilities of

- SCM- CRM- PLM- SRMü Supporting digital trends such as

the Internet of Things (IoT) andbusiness networks

Plant Maintenance (PM) Customer Service (CS)

Production Planning & Control (PP) Project Management (PS)

Environment, Health & Safety (EHS) Others: Global Trade Management, CompensationManagement, Agency Business, …

Industry-specific functions:Discrete industries: automotive, high tech, industrial machinery and components, aerospace and defense,

mill products, mining, chemicals

The

digi

talc

ore

TheD

igitalCore

Logistics General (LO)


SAP S/4HANASimplification List – Overview

Simplification List

Area

Simplification ItemSimplification ItemSimplification Item

Area

Simplification ItemSimplification ItemSimplification Item

Simplification ItemBasic Information

S-Item ID Short Description Edition / Release Simpl. Category

ImpactCustom CodeImpact Description Recommendation

Related ServicesCustomer Effort Service Offering

Change of existing functionality• Functionality which is adapted in detail (e.g. data model changes

removal of aggregates or the Material Master field lengthextension). Require primarily technical migration. From businessprocess and user point of view basically stays the same as before.Might come with custom code adaption effort on customer side

Functionality not supported anymore• Functionality which is not supported within current SAP

S/4HANA on-premise release (because the technology is nolonger state of the art and in many case an alternative and betterfunctionality is available). Example: ERP Shopping Cart replacedS/4HANA Self Service Procurement. The customer need to adaptto the alternative functionality (including custom code aspect).

Functionality not strategic anymore• Functionality which is considered as not strategic in future. The

functionality is still available unchanged (so no adaption effort)within the current SAP S/4HANA on-premise release. SAPS/4HANA related innovations are not planned to be provided forthese functionalities. In most cases an alternative functionality isalready available.Example: Logistics Information System is still available but theopen CDS based analytics approach would be the recommendedalternative

nThe Simplification List is a collection of Simplification Item. Within a Simplification Item it is described what is the difference of a functionality between SAP Business Suite and SAPS/4HANA. Currently the Simplification List provides this information for the SAP S/4HANA, on-premise 1511 release and will provided as part of the SAP S/4HANA documentation. ASimplification Items does have a simplification categories and provides information about potential impact for the customer. Based on the simplification item custom code checkanalysis can be executed. Related services offerings are available (or will be available over time).


Maintenance extension of Compatibility Packs


Procurement

SAP S/4HANA Enterprise ManagementKey innovations 1511 mapped to Product Map

Key Innovations 1511Material

RequirementsPlanning

CapacityPlanning

Order Mgmt. &Billing

InventoryManagement

MaterialValuation

Industry to Core AcceleratedFinancial Close

UniversalJournal &

Central Finance

Available toPromise

DIMP is the mostwidely used industrysolution within SAP.

This solution isheavily used bycross industrycustomers.(25 % Inside / 75 %outside leadingindustries)

Therefore SAP´sstrategy has tosupport these End-to-End Processesvia SAP S/4HANA.


Industry Value Chains are transformingSAPs Strategy: Make industry leading processes accessible for everybody in S4/HANA (Pick fromthe buffet)

Fact: BASF runs DIMP JIT in an singleinstance today

Concept: Meyer Werft is using LeanManufacturing concepts like JIS todayfor Shipbuilding

Oil & Gas Service Companies arerenting out heavy equipment(Equipment Tools Management) IS OIL& IS DIMP (today Side by Side ) need tobe on a single instance (future).

Transformation in full motion: Google isplanning to develop cars

You thinkYou see You need

Source

Source

Source

Source

Source

Source

Equipment Valueseveral Bill USD

Engineeringplastics andpolyurethanesin the BMW i3

Toda

yFu

ture


SAP S/4HANA – Synergies & collaboration in 3 dimensions

Innovation in business processes■ Throughput in inventory

management and valuation■ MRP on HANA■ ATP■ Rebate processing

Innovation in Architecture■ Throughput■ Scalability■ Principle of one■ SAP Fiori■ TCO reduction

Innovative Cross Industry BusinessProcesses for:■ Automotive; Aerospace & Defense; Engineering,

Construction & Operations; Industrial Machinery &Constructions; High Tech

■ Processes:˗ Just in Time / Just in Sequence Processing˗ Advanced Batch Management˗ Lean Manufacturing and Logistics with Kanban˗ Material Interchangeabilities and Succession˗ Automated Credit Memo Processing˗ Scheduling Agreement Processing˗ Vehicle Management System˗ Build-to-Order Optimization˗ Automated Earned Value Management˗ And many more

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 20Public 20Disclaimer: This road map represents SAP’s current plan, but is subject to change without any prior notification.Certain planning constraints, such as regulatory and licensing issues, are outside of our control and may impact the timelines.

SAP S/4HANA - Roadmap for Retail & Fashion (on premise)

Q1/2 2016 Q4 2016 Q4 20172 Q4 20182

SAP S/4HANA Finance 1605 w/ SAP Merchandising/Fashion Management on SAP HANASAP Customer Activity Repository 2.0 FP3SAP Merchandise Planning for Retail 1.0SAP Assortment Planning for Retail 1.0 FP3SAP Allocation Management for Retail 1.04

SAP S/4HANA Retail for merchandise management 16104,6

SAP Customer Activity Repository 3.05

SAP Merchandise Planning for Retail 2.05

SAP Assortment Planning for Retail 2.05

SAP Promotion Management Retail 9.05

SAP Allocation Management for Retail 2.04,51) Hybrid scenarios managed cloud tbd2) Dates not fixed yet3) No full Fashion Management scope, includes Fashion Wholesale; excludes Fashion Manufacturing4) Working title5) Earliest scenario, S/4HANA optimized version may follow in HY1 20176) No Fashion scope

SAP S/4HANA Retail for merchandise management 17104

SAP S/4HANA Fashion Management 17103,4

SAP S/4HANA Retail for merchandise management 18104

SAP S/4HANA Fashion Management 18104

21© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Key Innovations in logistics

This is the current state of planning and may be changed by SAP at any time.

Material Requirements PlanningFast MRP run, and new working model forMRP controllers based on decision support.

Order Management & BillingEnable monitoring of end-to-end order-to-cash process & take actions forany exceptions, information on the exceptions to resolve the issues, lowerTCO due to data model simplification, support for the most recent versionsof business features such as FSCM Credit Management, GTS ForeignTrade, SFIN Revenue Accounting, new analytical capabilities.

ProcurementIncreased efficiency in the Procure-to-Pay processes,new Analytical Apps & Spend KPI’s, Ariba NetworkIntegration for PO Order and IV.

Inventory ManagementSimplified data model resulting in increasedthrough-put, flexible analytics at the mostgranular level.

Available To Promise & Backorder processingEnhance ERP by advanced ATP capabilitiesin APO, new coding to make it better,innovation benefit as functionality will berefreshed.

Capacity PlanningNew deployment option for bringing PP/DSon ERP, reducing integration efforts,allowing seamless master data & UIharmonization.

Material ValuationPrinciple of One, scalable material valuation capabilities, utilizingMaterial Ledger, that way customers can use multi-currencies,valuation methods per different accounting laws like GAAP.

Industry to CoreDiscrete industries functionalities such as Just-in-Time & Just-in-Sequence available for wider cross industry adoption through theCore

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 22Public 22

Business Challenges

» Increasing customer service

» Low inventory accuracy

» Revenue losses due to stock-outs

» On-time delivery performance

Capabilities

» Prioritized view on material flow issues

» Real-time alerting

» System-generated solution proposals

» MRP can run sub-daily and as frequently as required

» Demand information is propagated faster through the supplychain

Business Benefits

» Clear visibility across the material flow

» Proactive decision making in response to changing demand

» Flexible tailoring of available capacities and receipts to meetrequired quantities

» Real time inventory monitoring and automating the creation ofprocurement proposals

Material Requirements Planning

üBusiness Benefits» Fast Performance by up to factor 10 / Memory footprint reduction

by factor 5» Role-based, KPI-driven solutions are proactively proposed for

users to consider» System analyzes and does Impact Analysis of the entire material

flow in real time and identifies disruptions in the material flow» Run on any device


MRP PerformanceExample data from a customer PoC

Legend:MRP Classic onAnyDB (12-wayparallelization)

MRP Classic onHANA (12-wayparallelization)

MRP Live on HANA MRP Live on HANA – HANA only

0

10

20

30

40

50

60

Version 1

Runtime in hours

40,2

Version 2 Version 3

55,5

Reference

Dat

avo

lum

ein

crea

se

Version 4 Version 5

4,5

17,5

2,5 4,31,5 3,9

5,5

44,8

17,5

Scenario 1 Scenario 2

1,0 2,2

Scenario 1 Scenario 2

Materials 1,5 Mio. 1,5 Mio.

Thereof configured materials 117.000 117.000

Inserted purchase requisitions 1,0 Mio. 1,0 Mio.

Inserted planned orders 2,3 Mio. 10,4 Mio.

Inserted dependentrequirements

9,2 Mio 96,0 Mio


How SAP S/4HANA helps Flexible Process Automation(Principle of code push down in MRP)

App-Server DB-ServerDispatcher

Read planning file entries

For every planning file entryRead planned orders

EbanRead purchase requisitions

Read purchase orders

Read production orders

Read sales orders

Read stock transfer demand

Read planning file entries

For all planning file entries with the same low-level code

Plaf

Mdbs

Caufv

Vbbe

Mdup

ReadEban

ReadPlaf

ReadEkpo

Afpo Vbbe EkkoMerge + Split

MRP planning logic

Plauf

Eban

Update planned orders

Update purchase requisitions

Planset 1

Planset 2

Planset 3

Merge + SplitInsertPlaf

InsertEban

InsertResb

ABAP post-processing (e.g.determine release strategy)

In the classic implementation, the application server calls the database server manytimes to read a lot of data. This data is then transferred from the database server tothe application server. All tables are read sequentially one after another.In the SAP S/4HANA Implementation, many tables are read in parallel using theparallelization capabilities. The data is not transferred back to the application serverbut used to compute material shortages directly in the database server.

App-Server HANADispatcher

1.300 lines of code ~90 lines of code


DecisionSupport

Simulation

Key Capabilities of an exception-based user interface design

Trends & analyticsat a glance

Personalizedpost-it notes

Full customercontact history

Context-dependent actions

Personalize layoutvariants Example: MRP Cockpit - Material Shortage

Contact data

Key capabilitiesConsolidation of activities, Intelligent navigation patterns,Intuitive usability


Reduce transportation costs utilizing truckload optimized purchasing

Reduce communication effort between supplier and customer

The Material Planner can quickly identify all materials to be ordered due todayor within the next days. All materials from one vendor are ordered together in away that the availability is balanced and that the used means of transportationare fully loaded.

SAP Fiori App : Create Optimal Orders for Shipment

Fiori Application to identify all materials due today or in thenear future to avoid material shortages. Quantities areproposed for one selected vendor to balance the availabilityof these materials and to fully load the chosen means oftransportation. After a possible manual correction, onepurchase order is created handling all selected materials.

Planned innovations – Q4/2016Truckload optimized Purchase Orders / PP-MRP


PlannedInnovations

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 38Public 38

Business Challenges

» Low throughput prevents real-time inventory

» Missing embedded and real-time analytics

» Missing comprehensive data model

» Process & data redundancies increase effort

Capabilities

» Real-time processing of inventory postings and visibility of inventoryvalues

» Posting of finest granularity like handling unit, lot size 1, sensor data

» Decreased stock levels (e.g. reduce buffers) due to increasedtransparency

» Easy to consume data model supporting flexible analytics

» Manage the changing demand for smaller lot sizes passing through thelogistic operations

Business Benefits

» Improve on-time delivery

» Increase inventory turnover

» Reduce cost of inventory

» Single source of truth of inventory in one system

Real Time Inventory Management

Safety stock

Time

Qua

ntity

Reorderpoint

Wee

kly

Rep

leni

shm

entà

Buffers

Daily collectivegoods issues

Just-in-time

Time

Qua

ntity

Safety stock

Reorderpoint

Sub-dailyreplenishment Continuous

goods issue postings


SAP S/4HANA Enterprise ManagementKey Innovations - Inventory Management

MATDOC

Business Suite

AggregatesHistory

Inventory

Material Master

on-the-flyaggregation

26aggregate

tables

1document

table

MSTQH

MSTEH

MSTBH

MSSQH

MSSAH

MSPRH

MSLBH

MSKUH

MSKAH

MKOLH

MCHBH

MARDH

MARCH

MSTQ

MSTE

MSTB

MSSQ

MSSA

MSPR

MSLB

MSKU

MSKA

MKOL

MCHB

MKPF

MSEG

Document

MARCH MARDHMARC MARD

Eliminate

Aggregates

Improve by elimination of aggregates


Inventory ManagementExamples for unlimited Data Through put in Goods Movement

ü Multiple production lines produce same product bysingle item tracking and combined postings for

ü Goods issue raw materialü Goods receipt finished productü Goods issue finished productü Goods receipt finished product at

distribution center

1. Parallel Production combined postings

Example Use Case:

2. Ice Truck Scenario

ü Trucks deliver goods to customer directly. Comingback to the distribution center the orders anddeliveries are uploaded from offline device.Combined postings

ü Creation of sales order and deliveryü Picking of goodsü Goods issue, invoicingü Truck replenishment

Distribution Center

Distribution Center


Simplifications are the enablerfor throughput increase of 10 up to 25

0

200

400

600

800

0 20 40 60 80 100

Thro

ughp

ut(it

ems/

sec)

# Parallel Processes

SAP Business Suite on SAP HANA

§ Negative stock notallowed

§ No database locks anymore

§ Automotive scenario testcase

§ Reporting point backflushwith transfer posting of100 items each

§ 60% common parts

large OEM back-flush requirement (example)

Parallel postings of large material documents


Enhancements of Fiori Apps for Inventory Managers and Warehouse Clerks

Functional and usability enhancements to handle special stock invarious processes in inventory.

Planned innovations – Q3/2016Enhanced Usability / Inventory Management (IM)


PlannedInnovations

Physical Inventory Document Overview App

Quick and easy to use overview of aphysical inventory document.

Decrease of average inventory levels through extended transparency on inventoryturnover and additional apps like “Transfer Stock Cross-Plant”, “Stock Overview forMultiple Materials” and performance optimization for goods movements



Inventory Turnover Analysis

Key benefits

» Real time stock analysis ingraphical way

» Overview of the entireinventory turnover situationfor the selected scope ofmaterials and / or plants andthe selected time range

» Dive into the details of theinventory analysis



Inventory Turnover Analysis

Key benefits

» Comprehensive stockoverview per material on thetime scale

» Display the most importantinventory key figures


Production Planning & SchedulingOptions Today

SCM

Serv

er

Large & X-LargeInstallationsü High Data Volume: two

NetWeaver® Serversü APO with D/Q/P

Landscapeü Available for S/4 with

restricted target mode

ERP,S/4

HANAAPO

LiveCach

e

Add-

on

LiveCacheAPO

ERP

Medium-SizedInstallationsü Simplified Landscape,

reduced TCOü Less

DB/OS/Backup/BasisOperations

Suite

(ER

P+AP

O)

onH

ANA

Suite on HANAInstallationsü Simplified Landscape,

reduced TCOü Simplified Application:

Integration, Data Model,UI, Analytics

ü No restrictions of APO-PPDS use cases

ERPon

HANA

Delivered inQ1 2016 (EhP8 & EhP4)SCM 7.0 EhP3APO Standard Deployment

Model

APO +Embedded

PP/DS

LiveCache S/

4+

PPD

S

S/4 HANA Installationsü Same changes as

Business Suite on HANAü New Fiori based Gantt

Chartü Additional improvements

around embeddingPP/DS into S/4 HANA

S/4HANA

PPDS

LiveCache

PP/DS for S/4HANA1610


Increase production throughput and reduced production costs leveragingfinite capacity planning embedded in S/4HANAReduced order cycle time

Reduce replanning effort

Minimize shortage situations

Harmonization of capacity load

Creating finite production plan according to the available capacity situation and scheduleavailable resources and generating production plan to the precision of seconds. Ganttthemed web based scheduling board to manually schedule capacities

SAP Fiori App for Production Scheduling Board

PP/DS for SAP S/4HANA 1610 :Finite capacity



Comprehensive Plan to Produce in ONE System

SalesOrderEntry

MRP Run +Constrained

PlanningInteractivePlanning

Release toProduction

ProductionExecution

Monitor andControl

q Comprehensive plan to produce

in a single system at a low cost

q Just one database to manage.

Less time for setup, back up and

administration

q Integrated material requirements

planning

q Simple and seamless integration

q Easy monitoring and

administration

ProductionPlanner

ProductionSupervisor

ProductionOperator

ProductionPlanner

Key Benefits


Simplification in Following Areas

Ø One Material Master, One Resource MaintenanceØ Create, Update for Source of Supply without Queues

Ø Simplified Integration

Ø MRP Run with SAP ERP and SAP APO (Advanced Planning) MaterialsØ One Fiori-based Planner Launchpad for Material Flow and CapacityØ Simplified Navigation Across SAP APO and SAP ERPØ Unified Order Conversion Reports

Master Data Harmonization

CIF Simplification

UI/Process Harmonization


One Material

Simplified Maintenance,Consistent Data

q Single material master maintenance

for SAP ERP and SAP APO-relevant

materials

q No integration model maintenance

q Synchronous commit, consistent data

q Immediate error handlingMaterials that need to be

planned in SAP APO

PP/DS-relevant fieldscan be maintained

Immediate error displayfrom SAP ERP and

SAP APO

Fiori UI will look differently


One Work Center

q Single resource data maintenance for

SAP ERP and SAP APO-relevant

resources


q Synchronous commit, consistent data

q Immediate error handling

Resources that need to betransferred to SAP APO

Immediate errordisplay from SAP

ERP and SAP APO

Simplified Maintenance,Consistent Data


One Sources of Supply

Simplified Integration,Immediate Feedback


q Synchronous update of BOM and

PDS without queues

q Immediate change transfer of

PDS


PP/DS in S/4 1610 On-Premise : MRP Live (SAP APO and SAP ERPMaterials)

DEMO_APO_FIN

APO finished product

DEMO_APO_SEMIFIN

APO semi finished

DEMO_ERP_SEMIFIN

ERP semi finished

q MRP run with SAP ERP and SAP PP/DS (Advanced Planning)materials if all downstream materials are Advanced Planning-relevant

q Single source of low level code calculation

q Consistent data across low level code runs for SAP ERP andSAP APO

q Necessity of scheduling only single MRP run

DEMO_ERP_FIN

ERP finished product

DEMO_ERP_SEMIFIN1

ERP semi finished

DEMO_ERP_SEMIFIN1

ERP semi finished

Benefits

MRP Run with SAP ERP and SAP APO (Advanced Planning) Materials


PP/DS in S/4 1610 On-Premise : One MRP Cockpit

One MRP Cockpit

q Capacity utilization of resources

can be monitored using this app

q Production Planners can add the

area of responsibility as plants in

which they want to monitor the

capacity

Tiles to openCapacity and MRP

Apps

Relevant plants andplanners can be added

Number ofresources


PP/DS in S/4 1610 On-Premise : Monitor Capacity Utilization

Evaluation Profileand Horizon based

on the customization

Filter: Currentlyfiltered by resources

Navigation Options

Utilization Chartbased on daily

buckets

KPIs


PP/DS: ‘Monitor Capacity Utilization’

Navigation toPlanning Table orScheduling Board

List ofRessources

UtilizationChart


PP/DS in S/4 1610 On-Premise : MRP Cockpit ( ProductionScheduling Board)

Filter: Currentlyfiltered by resources

In Line Utilisationdisplay

Gantt basedoperations/activities/breakdown/downtim

e view

Utilisation, Legendand Settings


PP/DS for S/4 1610 On-Premise : Additional Resources

· S/4 HANA 1610 Landing Page: https://help.sap.com/s4hana_op_1610

· PP/DS Help LandingPage: https://uacp.hana.ondemand.com/http.svc/rc/PRODUCTION/f431c95360267614e10000000a174cb4/1610%20000/en-US/frameset.htm

· Release Note: 2381624 - Release Information Note: Production Planning and Detailed Scheduling for SAP S/4HANA1610

· Simplification List : 2372590 - Simplification List: Production Planning and Detailed Scheduling for SAP S/4HANA 1610

· Fiori reference Lib : Production SchedulingBoard: https://fioriappslibrary.hana.ondemand.com/sap/fix/externalViewer/#/detail/Apps('F2176')

· Fiori reference Lib : Monitor Capacity Utilisation :https://fioriappslibrary.hana.ondemand.com/sap/fix/externalViewer/#/detail/Apps('F1523')/S6OP


SAP S/4HANA aATP Overview

SAP S/4HANA advanced ATP, is SAP’s next generationOrder Promising and Confirmation solution that provides:Ø fast product availability check, both online and in

batch mode, to make accurate delivery datecommitments against customer orders

Ø use case-driven product allocation check to manageshortages

Ø Back Order Processing with intuitive requirementclassification and filter criteria

Ø flexibility to make informed last minute changes toconfirmations before delivery

Ø intelligent and fully automated selection of bestconfirmation based on ATP situations at alternativelocations and/or for substitutable materials *

Ø Transportation and shipment scheduling integrated inS/4HANA Transportation Management *

* on roadmap


Available to Promise

ERP

Data replication via CIF

APO Code Pushdown to HANA

SAP S/4HANA

…Product Availability Check

Product Allocation

Rescheduling

Substitutions

Etc.

Product Availability Check

Product Allocation

Rescheduling

Substitutions

Etc.

Product Availability Check

Product Allocation

Rescheduling

Substitutions

Etc.

Current functional model With SAP S/4HANA Simple Logistics


Product Availability Check (PAC)

ü Available Functionalities:ü Mass enabled product availability checkü Seamless integration with …

- sales order processing of S/4HANA- planned & production order processing of S/4HANA

ü Support of special stock and batches

ü Available Functionalities:ü Mass enabled product availability checkü Seamless integration with …

- sales order processing of S/4HANA- planned & production order processing of S/4HANA

ü Support of special stock and batches

üEffectivenessCan I accurately provide commitments to customer orders?

ü Future Outlook:ü Fiori based simulation and explanation toolü Consideration characteristics via segmentationü Special processes for shelf life (ARUN)

ü Future Outlook:ü Fiori based simulation and explanation toolü Consideration characteristics via segmentationü Special processes for shelf life (ARUN)


Sales Production

Inventory

Outbound DeliveriesTransfer Request

Flexible Run of Back Order Processing

Purchase

Analyze andoptimize outboundshipments as anoptional step.Increase ServiceLevel, minimizematerial handlingand transportationcostsTime

Live Supply, Demand, Inventory

Shipping Controller

Back Order Processing and Delivery Release APP


Back Order Processing (BOP)

ü Available Functionalities:ü Significantly faster than traditional reschedulingü Based on requirement segmentation and

classification Win, Gain, Redistribute, Fill and Loose

ü Filter and Sorter for each segmentü FIORI based BOP Set Up and BOP Result Monitor

ü Available Functionalities:ü Significantly faster than traditional reschedulingü Based on requirement segmentation and

classification Win, Gain, Redistribute, Fill and Loose

ü Filter and Sorter for each segmentü FIORI based BOP Set Up and BOP Result Monitor

üManage PrioritiesCan I efficiently provide order commitments protecting my business interest?

ü Future Outlook:ü Automatic exception handling with fallback variantü Interactive Back Order Processing

ü Future Outlook:ü Automatic exception handling with fallback variantü Interactive Back Order Processing


Reduce TCO. One Run fits all. Former solution requested more subsequent runs.Increase margin due to flexible order confirmation based on business priorities in ATP back-order processing.

Flexible and intuitive selection and ranking of sales order requirements.

High performance mass ATP-check.

Planned innovations – Q4/2016 (1610 & 1611)advanced ATP – Backorder processing


PlannedInnovations

Advanced ATP – Backorder Processing

• New FIORI-UIs to set-up BOP-runs.

• New concept for requirement classification:- Winner- Gainer- Redistributor- Filler- Looser

• New FIORI-app to display the BOP-result:The result is displayed on different aggregationlevels and allows an easy identification of (andfast drill down to) confirmation issues.


Back Order Processing - DetailsThe five confirmation strategies

WinGain

RedistributeFill

Lose

Q

Confirmas requested

Shall be fully confirmedin time

e.g. The most importantcustomer orders

Improve ifpossibleShall keep the

confirmations andshould gain if possible.e.g. Orders that cannot

lose the earlierconfirmations

Redistributeand

Reconfirm

Might gain, Might lose.e.g. Orders that canlose confirmations

Deleteconfirmation,

if requiredShall not gain anything,should keep confirmation,but may also lose.e.g. Non-priority customer

orders

Deleteconfirmation

Shall lose all confirmationse.g. orders under credit

block

Q


Improved customer service value and increased on-time delivery for important sales orders.

Confirmation of all sales orders reliable and transparent

Planned innovations – Q3/2016 (1608)advanced ATP – Release for Delivery app


PlannedInnovations

SAP FIORI App for Release for Delivery

• Fiori application to enable timely actionson short term supply and demandchanges.

• Manual redistribution of alreadyconfirmed quantities according to thecompany prioritization strategy


Release for Delivery

ü Available Functionalities:ü FIORI based interactive changes to sales order

confirmations before releasing the orders to deliveryü Impact simulation of current ATP situationü Direct navigation to Sales Order

ü Available Functionalities:ü FIORI based interactive changes to sales order

confirmations before releasing the orders to deliveryü Impact simulation of current ATP situationü Direct navigation to Sales Order

üLast Minute ChangesCan I manipulate confirmations to manage last minute escalations?

ü Future Outlook:ü Forward navigation to the explanation components for

- Product Allocation (PAL)- Product Availability Check (PAC)

ü Future Outlook:ü Forward navigation to the explanation components for

- Product Allocation (PAL)- Product Availability Check (PAC)


Planned Roles at a Glance

RoleQuality TechnicianQuality PlannerQuality EngineerQuality ManagerQuality AuditorCalibration Technician


Quality Technician:

§ Manages physical samples (process industry)

§ Carries out different types of quality inspections

§ Provides inspection results to enable timelyinformed release decision and thereforesupport ensuring product compliance andquality requirements

§ Creates unplanned inspection characteristicsand physical samples

§ Triggers planned and unplanned inspection lots

§ Records defects in case of an issue

§ Tracks and confirms quality notification tasksthe quality technician is assigned to


* Feature highlights for SAP S/4HANA 1610. See Feature Scope Description of SAP S/4HANA 1610 for full scope.

1610 – Recent innovations* 2018 – Product direction**2017 – Planned innovations** 2019 – Product vision**

** This is the current state of planning and may be changed by SAP at any time without notice.

SAP S/4HANALoB: Manufacturing – inventory management

Process innovationsü Additional performance optimization for goods

movementsü Simplified material valuation to enable

parallel inventory posting for moving averageprice-driven materials

ü Integration of catch weight management intoSAP S/4HANA

User experienceü New analytical and transactional SAP Fiori

apps for inventory managers and warehouseclerks

ü UX and functional enhancements of existingSAP Fiori apps

ü SAP Fiori visual theme for classic transactions

Process innovationsü Inclusion of predictive analytics into process

monitoring for decision supportü Provision of comprehensive overview of

inventory KPIs to facilitate processoptimization and benchmarking

ü Enablement of integration using standardizedAPIs to facilitate implementation of innovativebusiness processes on SAP HANA CloudPlatform

ü Demand-driven (pull-oriented) scenarios inintercompany and intracompany stocktransfers

Cloud analytics for inventory movements***in SAP HANA Cloud Platformü Benchmark stock and inventory through

analysis of stock, material flow, and masterdata across plants

Process innovationsü Communication of goods receipts to

Ariba Networkü SAP Fiori UX enhancements with an overview

page to support the daily business of inventorymanagers and warehouse clerks

ü Analytical cube and multidimensional reportingfor physical inventory items

ü Analytical cube and multidimensional reportingfor goods movements

ü Availability of existing SAP Catch WeightManagement for current customers

ü Direct store delivery (DSD) with empties inSAP S/4HANA (compatibility mode)

User experienceü New transactional and analytical SAP Fiori

apps for warehouse clerks and inventorymanagers

ü UX and functional enhancements of existingSAP Fiori apps in inventory management

Process innovationsü Adoption of artificial intelligence and machine

learning for master data and processoptimization

Cloud analytics for inventory movements inSAP HANA Cloud Platform***ü Benchmark stock and inventory through

analysis of stock, material flow, and masterdata across company

*** Not part of SAP S/4HANA shipment; requires additional products.





SAP S/4HANALoB: Manufacturing – available to promise (ATP)

Backorder processing (BOP)ü SAP Fiori apps for setting up the BOP run:

– Configure BOP segment– Configure BOP variant– Schedule BOP run

ü SAP Fiori app for results display– Monitor BOP run

ü SAP Fiori apps for interactive confirmation– Release for Delivery– Configure Order Fulfillment

ResponsibilitiesProduct allocation (PAL) for salesü Configure PAL objectü Assign PAL data to material or material-

location combinationü Manage PAL planning data

Rules-based ATP (RBA)ü Alternative plants

– Determination of allowed alternatives– Mass check of allowed alternative plants– Selection of best-alternative plant

ü Integration of RBA result in SD sales order– Replace existing line item– Add additional subitem(s)

Backorder processingü Interactive BOP based on Release for

Delivery appü BOP analytics for ATP result

Product allocation (PAL) for productionü PAL analytics: explanation component

– Decision support to optimize processsetup

Backorder processingü Enhance BOP

– BOP analytics: simulate selection andsorting

– Enable handling of stock transferdocuments

– Automatic exception handling (fallbacks)– Provide extensibility features

ü Enhance Release for Delivery app– Multiple schedule lines– Analytical entry screen (bubble chart)

Product allocation (PAL)ü Extensibility and flexibilityü Instance-based authorizationü Alternative sources of supply

Product availability check (PAC)ü PAC analytics: reusable SAP Fiori-based

explanation and simulation component

Machine-learning capabilities in rules-basedATPü In-order entry and backorder processingü Comprehensive embedded analytics for rules-

based ATP, including explanation andsimulation capabilities

Rules-based ATPü Comprehensive embedded analytics for rules-

based ATP, including explanation andsimulation capabilitiesDecision support to optimize process setup

Profitability-based ATPProduct allocationü PAL for production and external procurementü Modeling of constraints production and supplier

capacity in multilevel scenariosü PAL for transportation and warehousingTransportation and shipment schedulingü Reuse of sophisticated scheduling capabilities

of the integrated transportation managementsolution





SAP S/4HANALoB: Manufacturing – logistics execution

Enhancements to SAP Fiori apps for shippingspecialists in SAP S/4HANAü SAP Fiori apps for job scheduling of delivery

creation and goods issue posting

Outbound and inbound processingü New engagement model for shipping

specialist and receiving specialist based onanalytical insights:– Key facts and figures– Drill-down options to access more-detailed

information

Business process monitoringü Graphical representation of selected key

performance indicators to foster insight toaction, such as lead-time reduction in pickingand packing

Outbound and inbound processingü Search-based system interaction for

– Outbound delivery– Inbound delivery– Returns delivery

In-app extensibilityü Delivery creationü Delivery processingü Object pages

Outbound and inbound processingü Establish delivery processing as material flow

hub for end-to-end scenarios in manufacturingand distribution network, such assubcontracting and intracompany orintercompany stock transfer

ü Integrate IoT-driven track and trace scenarios





SAP S/4HANALoB: Manufacturing – manufacturing engineering, planning, and production operations

Manufacturing engineeringü Visual enterprise manufacturing plannerü Configurable work instruction

Production planningü Production planning and detailed scheduling

as integrated part of SAP S/4HANAü Production scheduling board (1st scope)ü Material requirements planning (MRP) cockpit:

planning apps for make-to-order and project-based manufacturing

Production operationsü Plant performance analyticsü SAP Fiori object pages for major production

objects

Manufacturing engineeringü Extended Industry 4.0 scenarios for

manufacturing engineering and changemanagement

Production planningü Demand-driven production of individualized

productsü Demand-driven replenishment: supply

managementü Integration of integrated business planning

(IBP) with demand and supply planning

Production operationsü Installation execution for complex assemblyü Support of scalable subcontracting scenarios

for distributed supply networks

Manufacturing engineeringü Engineering cockpit for comprehensive bill of

materials (BOM) and routing management,including execution-related master data

ü Manufacturing change management

Production planningü Unification of master data maintenance and

integration simplificationü Interactive and simulated production planning

(SAP Fiori UX)ü Demand-driven replenishment: stock-level

management

Production operationsü Enhancement of user experience for

production supervisors with new SAP Fioriapps

ü Fabrication and fab assembly execution forcomplex assembly

Manufacturing engineeringü Intelligent assistance for handling of changes

from engineering and manufacturing

Production planningü Comprehensive demand-driven production

planning, integrated with IBP, purchasing, andmanufacturing execution

ü High-performance plant simulation forcapacity, purchasing, and financialplanning

Production operationsü Intelligent assistance of manufacturing

execution processes, integrated with IoTapplications

Subcontractingü Demand-driven replenishment for parts

providedü Order of individualized productsü Advanced settlement processes





SAP S/4HANALoB: Manufacturing – quality management

Quality engineeringü Quality management (QM): object pages for

quality plannersü Core data services (CDS) views for master

data

Quality assurance and controlü New SAP Fiori transactional app for results

recording, enabling quality technicians torecord inspection results easily and efficiently

ü SAP Fiori apps for quality technicians inSAP S/4HANA: object pages for qualitytechnicians

ü Simplified inspection process in extendedwarehouse management (EWM) withinSAP S/4HANA (first scope)

Quality improvementü CDS views for quality inspectionsü QM: role-based SAP Fiori launchpads

Quality engineeringü Simplified inspection planning processü Streamlined test equipment management

Quality assurance and controlü New SAP Fiori apps and overview pages for

complaint management processes

Quality improvementü Comprehensive analysis of QM data to enable

insight to actionü Enhanced overview pages containing

analytical information as entry points fordifferent roles in QM

Quality engineeringü Additional object pages in SAP Fiori for a wide

range of quality objects

Quality assurance and controlü Enhanced SAP Fiori app for results recording

(extended version)ü New SAP Fiori transactional app for

monitoring inspection lots and making usagedecisions

ü Collective usage decisionü Simplified inspection process in EWM within

SAP S/4HANA (extended scope)

Quality improvementü SAP Fiori apps to improve quality control by

monitoring and adjusting processesü Analytics for inspection resultsü Newly designed object pages with charts to

display results history and single values ingraphical form

ü New SAP Fiori apps for capturing andmonitoring defects

Quality engineeringü Reduction of quality costs and sustainable

prevention of defects based on an advancedclosed-loop inspection planning process thatincludes:– Failure mode and effects analysis (FMEA)

and control plan– Production part approval process (PPAP)– Audit management– Predictive quality management

Quality improvementü Machine learning capabilities to enable a

guided and proactive complaint process,supported by proposed issue resolutions

ü Standardization of issue resolution procedures(“eight disciplines” [8D]) and corrective andpreventive actions, including root causeanalysis, such as “5-why analysis” andcollaborative scenarios


Pattern 1: Activity beforeMigration + Downtime

Pattern 2: Activity before orafter Migration

Pattern 3: Activity after Migration

Pattern 4: Technical Migration

Inventory valuation not supported in S/4HANA. Switch to materialledger can be done before migration (activation of ML supportedvia dedicated report) During downtime ML migration to new logic.Material Ledger

BOM-Determination

MM-IM

Simplification ofMRP areas

One logic for all storage location MRP-Logic. In case of usingsuch logic, program needed to create missing MRP-areas andMRP-File before running MRP in SAP S/4HANA

Conversion of IM-Tables (MSEG) into new MATDOC

One Logic for BOM-Determination only via production version.Conversion to new logic via report possible before and aftermigration possible, has to run before starting MRP inSAP S/4HANA

SAP S/4HANA System ConversionExample: activities for logistics scope

Further Information

Official road mapcontent available onService Marketplace

Product Road Maps > Cross Product > S4HANAhttps://websmp201.sap-ag.de/~sapidb/012002523100006634812015E.pdf


SAP Fiori

SAP Fiori, User Productivity Examples• http://www.youtube.de• Search term: SAP GUI Fiori

SAP Fiori Library:

https://fioriappslibrary.hana.ondemand.com/sap/fix/externalViewer/


SAP S/4HANA Cookbookhttp://scn.sap.com/docs/DOC-64980


SAP S/4HANA Simplification List

Go: http://help.sap.com

Navigate:

ü Enterprise Management >ü SAP S/4HANA >ü S/4HANA On Premise 1511 >ü Simplification List


SAP S/4HANA Conversion Guide

Go: http://help.sap.com

Navigate:

ü Enterprise Management >ü SAP S/4HANA >ü Conversion Guide

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