scm215 mysap supply chain modeling

SCM215mySAP Supply Chain Modeling

mySAP Supply Chain Management

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Participant HandbookCourse Version: 2005 Q2Course Duration: 3 Day(s)Material Number: 50076081

An SAP course - use it to learn, reference it for work

Copyright

Copyright © 2005 SAP AG. All rights reserved.

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About This HandbookThis handbook is intended to complement the instructor-led presentation of thiscourse, and serve as a source of reference. It is not suitable for self-study.

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2005/Q2 © 2005 SAP AG. All rights reserved. iii

About This Handbook SCM215

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iv © 2005 SAP AG. All rights reserved. 2005/Q2

ContentsCourse Overview ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

Course Goals .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viiCourse Objectives ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viii

Unit 1: Integration in SAP SCM ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Overview of Integrating SAP ECC and SAP SCM... . . . . . . . . . . . . . . .2

Unit 2: Locations in SAP SCM ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11Locations in SAP SCM .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Plants in SAP SCM ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26MRP Areas in SAP SCM... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43Transportation Zones in SAP SCM ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67Customers in SAP SCM ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74Suppliers in SAP SCM .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95Calendars and Time Streams .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107

Unit 3: Materials/Product Masters ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121Materials and Product Masters... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122SAP SCM Product Master Data.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179

Unit 4: External Procurement Relationships ..... . . . . . . . . . . . . . . . . 195Standard Purchasing Info Records ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . .196Scheduling Agreements... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .207

Unit 5: SAP SCM Network Modeling..... . . . . . . . . . . . . . . . . . . . . . . . . . . . 223Transportation Modes in SAP SCM ... . . . . . . . . . . . . . . . . . . . . . . . . . . . .225Means of Transportation in SAP SCM ... . . . . . . . . . . . . . . . . . . . . . . . . .232Transportation Lanes in SCM .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .245

Unit 6: Work Centers and Resources ..... . . . . . . . . . . . . . . . . . . . . . . . . . 277Work Centers and Resources .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .278SCM Resources.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .310Capacity Variants in SAP SCM... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .330

Unit 7: Modeling Production Process Models in SCM ...... . . . 351Overview of PPMs in SAP SCM .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .353SAP ECC Bills of Material in the SAP SCM PPM ... . . . . . . . . . . . .364SAP ECC Routings in the SAP SCM PPM ... . . . . . . . . . . . . . . . . . . . .386PPM in SAP SCM.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .419

2005/Q2 © 2005 SAP AG. All rights reserved. v

Contents SCM215

The Production Data Structure (PDS)... . . . . . . . . . . . . . . . . . . . . . . . . . .459Recipes and the PPM Generation .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .491

Unit 8: Quota Arrangement in SAP SCM ...... . . . . . . . . . . . . . . . . . . . . 513Quota Arrangements in SCM... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .514

Unit 9: Integrating Transactional Data ..... . . . . . . . . . . . . . . . . . . . . . . . . 527Setting up Transactional Data Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . .528

Unit 10: Sub Contracting in SAP SCM ...... . . . . . . . . . . . . . . . . . . . . . . . 545Sub-Contracting ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .546

vi © 2005 SAP AG. All rights reserved. 2005/Q2

Course OverviewThis course was designed specifically for the supply chain planner. Over thecourse of the five days, students will create a supply chain from the bottom up.Students will be instructed on the art of setting up, monitoring, and comparingand correcting inconsistencies in the integraiton between and SAP R/3 and SAPSCM systems.

The modeling will start with reviewing some data that already exists in SAP R/3,and transferring that data to SAP SCM for supply chain planning purposes. Inaddtion you will look at different master data modeling options between the SAPR/3 methods, and how they translate/transfer to SAP SCM. In addtion you willcreate addtional master data in SAP SCM to complete the necessary master data toperform supply chain modeling.

This class is a combination of SCM210 and SCM215.

Target AudienceThis course is intended for the following audiences:

� Customers, Implementation Partners and SAP Consultants

Course PrerequisitesRequired Knowledge

� Basic knowledge of SAP R/3 Master Data

Recommended Knowledge

� Basic understanding of the SAP R/3 Planning process and related master data

2005/Q2 © 2005 SAP AG. All rights reserved. vii

Course Overview SCM215

Course GoalsThis course will prepare you to:

� Setup, monitor and correct inconsistencies between the SAP R/3 and SAPSCM

� Identify and develop a complete supply chain model in the SAP SCMenvironment

� Demonstrate a detailed understanding of how master data objects in SAP R/3are transferred and modeled in SAP SCM

� Create SAP SCM master data to complete the supply chain model.

Course ObjectivesAfter completing this course, you will be able to:

� Transfer master data from SAP R/3 to SAP SCM, andcreate SAP SCMspecific modeling data to complete the Supply Chain.

� Identify where to add master data to SAP SCM to have a fully functionalSupply Chain Planning system.

� Develop a complete supply chain model in SAP SCM based on SAP R/3master data.

� Describe the modeling options that are available in SAP SCM and theireffects on the SAP R/3 system.

SAP Software Component InformationThe information in this course pertains to the following SAP Software Componentsand releases:

viii © 2005 SAP AG. All rights reserved. 2005/Q2

Unit 1Integration in SAP SCM

Unit OverviewOver the next few lessons, students will be able identify the tasks needed to setupthe communication between SAP ECC and SAP SCM, and to set up the necessaryparameters to ensure the integration of both master data and transactional data.Additionally, methods for monitoring and correcting inconsistencies in the datatransfer will be discussed.

Unit ObjectivesAfter completing this unit, you will be able to:

� Explain the basic concept of integrating SAP SCM to a OLTP (On-lineTransaction Processing System) system.

� Give a basic explanation as to how SAP ECC and SAP SCM systemsintegrate.

Unit ContentsLesson: Overview of Integrating SAP ECC and SAP SCM ... . . . . . . . . . . . . . . .2

2005/Q2 © 2005 SAP AG. All rights reserved. 1

Unit 1: Integration in SAP SCM SCM215

Lesson: Overview of Integrating SAP ECC and SAP SCM

Lesson OverviewThis unit discusses the integration methods between and SAP SCM system andone or more Online Transaction Processing Systems (OLTP)

Lesson ObjectivesAfter completing this lesson, you will be able to:

� Explain the basic concept of integrating SAP SCM to a OLTP (On-lineTransaction Processing System) system.

� Give a basic explanation as to how SAP ECC and SAP SCM systemsintegrate.

Business ExampleYour organization currently uses SAP ECC for planning and has acquired SAPSCM for more intensive supply chain modeling and planning. You need to have ageneral understand for how these two separate systems will integrate to allow yourcompany to leverage its SAP SCM investment for supply chain modeling/planning.

Integrating SAP SCM to a On-line TransactionProcessing System (OLTP)As you should already be aware SAP has divided supply chain planning andexecution into two discinct functions and has created two distinct softwarepackages, one to handle execution (SAP ECC) and another to handle advancedplanning (SAP SCM). These two systems have been developed separately,therefore they have two separated data bases for both transactional data and masterdata. However, in order for any business to function properly, these two systemsneed to act as one. In order to ensure that businesses can function in a real timeenvironment, SAP has developed software that will allow the two systems tointeract seamlessly in real time. The software that integrates SAP ECC with SAPSCM is called the Core Interface (CIF)

2 © 2005 SAP AG. All rights reserved. 2005/Q2

SCM215 Lesson: Overview of Integrating SAP ECC and SAP SCM

Figure 1: Core Interface

The Core Interface (CIF) is responsible for the data exchange between SAP ECCand SAP SCM Systems. The CIF is a real-time interface that links SAP SCMwith one or several SAP ECC Systems. Only the data objects needed in the datastructures in SAP SCM for the different planning and optimization processes aretransferred from the complex data set of the SAP ECC system into SAP SCM. TheCore Interface guarantees both the initial data transfer (initial transfer) and alsothe transfer of data changes within SAP SCM. The integration of SAP ECC withthe CIF interface is possible as of release 3.1I. Earlier releases or an R/2 Systemcan be connected with BAPIs as �Non-SAP ECC Systems�. (BAPI = BusinessApplication Programming Interface).

Integrating SAP ECC to SAP SCMOnce a customer has purchased one of SAP�s �mySAP� products (SAP SCM,SAP BW, SAP CRM, etc....), a software component called the SAP ECC Plug-inmust be installed if your SAP ECC system is to integrate with any of the SAPExtension products. The Plug-in software will enable businesses to integrate amySAP component (for example, SAP SCM or SAP BW) with one or severalSAP ECC Systems. With the SAP ECC Plug-in, several mySAP components canbe inserted at the same time. Most Plug-ins concern add-ons (SAP ECC standardsoftware enhancements with additional functions). Different mySAP componentscan be supplied with transaction and master data from the SAP ECC Plug-in. Inthis way, the CIF interface not only provides the SAP SCM system with initialdata records (initial supply), it also guarantees a step-by-step supply with all the



relevant data changes. In the case that the BW within SAP SCM needs to beintegrated with your SAP ECC system, Extractors are provided by the plug-in tosupport data transfer of master data and transactional data.

Figure 2: SAP ECC Plug-In Technology

New and extended interfaces for integrating SAP ECC , SAP ECC Enterprise, andSAP ERP Central Component (SAP ECC) will no longer be delivered with theirown add-on (SAP ECC Plug-In). As of SAP ECC 6.00, they will be containeddirectly in SAP ECC. PI 2004.1 is therefore the final separate delivered SAPECC Plug-In release. This means that:

� SAP ECC 6.00 and subsequent releases will automatically contain allintegration interfaces that so far have been contained in the SAP ECC Plug-Inand that ensured the technical integration with other SAP Components.

� Customers who run SAP ECC 4.6C, SAP ECC Enterprise 47x100 and47x200, and SAP ECC 5.00 will receive additional integration interfaces ina Support Package for PI 2004.1 once a year. The delivery of this SupportPackage will be synchronized with that of mySAP Business Suite.

� The 2005 delivery is expected to take place in November as part of SupportPackage 10. This rule applies only for customers with a SAP ECC Plug-Inrelease PI 2004.1. Customers with PI 2003.1 or older must first upgrade toPI 2004.1 or SAP ECC 6.00.

� No new interfaces will be provided for integration between new SAPcomponent releases and SAP ECC 3.1I to 4.6B



The integration between SAP ECC and SAP SCM is possible as of release 3.1I.For earlier releases, R/2 or non-SAP products standard BAPIs exist, and can befound by executing transaction BAPI in SAP SCM. However, the necessary codewill have to be written to link the transaction in the execution system to the SAPSCM transaction.

One area of the CIF that users will become very familiar with is the integrationmodel. Integration models will be the mechanism that users will choosespecifically which master data and transactional data needs to pass between thetwo systems. Planners will be responsible for determining when new master datais created, whether it is SAP SCM relevant data, and therefore, should be includedin an integration model.

Figure 3: Integration Models and the CIF

Users will typically set up multiple integration models depending how they havearranged for the data to be transferred in large quantities. Integration models arecreated in SAP ECC with a specific SAP SCM system as it�s destination or target.SAP has provided some rough guidelines that will assist companies in creatingand monitoring the data transfer. Integration models will be used to perform boththe initial data loads and delta updates.

Initial LoadThe first time specific master data or transactional data is set to the recievingSAP SCM system.



Delta UpdatesAs more SAP SCM relevant data is created, periodic background jobs will berun, to re-create the existing integration models allowing for new master datato be sent to SAP SCM or terminating integration for obsolete master data.

For easy integration from SAP ECC to SAP SCM, it is necessary to install thePlug-in relevant to the SAP ECC release that your company is using. As of 2003,Plug-ins are released once a year pertaining to new functionality. Also note thatsupport packages are delivered periodically for the plug-ins. For more informationregarding how the plug-in might affect your implementation go to:Service.sap.com



Lesson Summary

You should now be able to:� Explain the basic concept of integrating SAP SCM to a OLTP (On-line

Transaction Processing System) system.� Give a basic explanation as to how SAP ECC and SAP SCM systems

integrate.

Related InformationThe Integration Features and Restrictions tool, which is available through theSAP Service Marketplace, will provide an overview of all interfaces that havebeen delivered: http://service.sap.com/ifr

Information about SAP ECC Support Packages for PI 2004.1 will be provided inthe SAP Service Marketplace at http://service.sap.com/r3-plug-in.


http://service.sap.com/ifr

http://service.sap.com/r3-plug-in

Unit Summary SCM215

Unit SummaryYou should now be able to:� Explain the basic concept of integrating SAP SCM to a OLTP (On-line

Transaction Processing System) system.� Give a basic explanation as to how SAP ECC and SAP SCM systems

integrate.


SCM215 Test Your Knowledge

Test Your Knowledge

1. What is the software that is used to connect you SAP ECC system to othermySAP components?

2. What is the name of the component that will allow SAP ECC to talk toSAP SCM?

3. What is the name of the tool that users will interface with to triggerintegration between SAP ECC and SAP SCM?

4. What are the two ways that OLTP systems can interface with SAP SCM?


Test Your Knowledge SCM215

Answers

1. What is the software that is used to connect you SAP ECC system to othermySAP components?

Answer: SAP ECC Plug-in

2. What is the name of the component that will allow SAP ECC to talk toSAP SCM?

Answer: CIF (Core Interface)

3. What is the name of the tool that users will interface with to triggerintegration between SAP ECC and SAP SCM?

Answer: Integration Models

4. What are the two ways that OLTP systems can interface with SAP SCM?

Answer: For SAP ECC 3.1I and higher the SAP ECC Plug-in. For non-SAPsystems or SAP ECC 3.1H and lower (R/2 also) will use the BAPI (BusinessApplication Programing Interfaces)


Unit 2Locations in SAP SCM

Unit OverviewThis unit addresses the use of locations in Supply Chain modeling. The goal is tounderstand what elements of the actual organization are relevant for Supply andDemand planning functions. SAP SCM differs from SAP R/3, in that SAP R/3being an �execution�system, considers the �ownership�of inventory very relevant.A system like SAP SCM that is for planning is not so concerned who owns thematerial, but more importantly �where�is the material. Additional master datawill support the planning of who will eventually own the materials, such as themanufacturing location, customer, or the vendor. One point to keep in mind, is thatnot all SAP R/3 execution locations are planning locations, and not all planninglocations are executable in your SAP R/3 system.

As a result several master data objects will �MAP�to one Location object in apo.


� Explain Concept of Locations in SAP SCM� Explain the purpose of the location master in SAP SCM, and what the

relevant SAP SCM specific fields are.� Review Plant Data in SAP ECC� Explain the difference between a Plant and a Distribution center in SAP SCM� Explaining the results of Transferring plants to SAP SCM from SAP ECC� Explain the concept and need for MRP areas in planning.� Review the configuration of an existing MRP Area and transfer it from SAP

ECC to SAP SCM.� Explain the differences between MRP Area locations and the other location

types in SAP SCM� Explain the differences between the SAP ECC MRP area functionality and

the SAP SCM MRP area.� Explain the purpose of a transportation zone in SAP SCM� Create a transportation zone in SAP ECC� Explain when and how to include customers in your SAP SCM model.


Unit 2: Locations in SAP SCM SCM215

� Review a simple customer master in SAP ECC� Explain the results of transferring Customers from SAP ECC to SAP SCM� Explain the differences between a customer location and plants and

distribution centers in SAP SCM.� Transfer a vendor to SAP SCM� Explain the difference between a vendor location and the other locations

types in SAP SCM.� Explain the use of Vendor master data to represent Transportation Service

Providers/Carriers in SAP ECC and SAP SCM.� Describe the layout and purpose of a factory calendar� Identify options for integrating SAP ECC factory calendars with SAP SCM

factory calendars� Demonstrate how a Time Stream in created in SAP SCM.

Unit ContentsLesson: Locations in SAP SCM.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Procedure: Location Types in SAP SCM... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Lesson: Plants in SAP SCM... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Procedure: Display Plant Configuration .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28Procedure: Display DC Configuration ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31Exercise 1: Plant and Distribution Centers in SAP SCM.... . . . . . . . . . . . 33

Lesson: MRP Areas in SAP SCM .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43Procedure: Materials and MRP Areas ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Procedure: MRP Area Configuration in SAP ECC ... . . . . . . . . . . . . . . . . . . 51Procedure: Transfer MRP Areas and Materials to SAP SCM .... . . . . . 53Exercise 2: MRP Areas in mySAP SCM (OPTIONAL) ... . . . . . . . . . . . . . . 57

Lesson: Transportation Zones in SAP SCM.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67Procedure: Creating Transportation Zones in SAP ECC ... . . . . . . . . . . . 72

Lesson: Customers in SAP SCM ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74Exercise 3: Create and Transfer Customers SAP SCM... . . . . . . . . . . . . . 85

Lesson: Suppliers in SAP SCM.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95Exercise 4: Display Vendor and Carrier Master Records ... . . . . . . . . . . . 99

Lesson: Calendars and Time Streams ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107Procedure: Display an SAP ECC Factory Calendar .. . . . . . . . . . . . . . . . . .109Procedure: .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111Procedure: Display SAP SCM Time Streams ... . . . . . . . . . . . . . . . . . . . . . . .117


SCM215 Lesson: Locations in SAP SCM

Lesson: Locations in SAP SCM

Lesson OverviewWhen Modeling a supply chain, users will need a better understanding as to whattypes of locations require planning within SAP SCM. In Advanced planningnew dimensions will be added to a planners responsibility, and they will need tounderstand what opportunities SAP SCM is presenting to them.


� Explain Concept of Locations in SAP SCM� Explain the purpose of the location master in SAP SCM, and what the

relevant SAP SCM specific fields are.

Business ExampleAssume your company currently uses SAP ECC for planning and wants tointegrate with SAP SCM to enable more intensive supply chain modeling andplanning.

In reviewing you company�s existing supply chain and considering how its supplychain will expand into the future, you must consider:

� the scope of what will be included in SAP SCM� how your existing ERP data in SAP ECC can be modeled in SAP SCM to

take advantage of the extensive SAP SCM functionality� how you currently plan and what options will be available to you in SAP

SCM as far as modeling the entire supply chain.

Locations in SAP SCMDuring the evaluation process in your implementation you must consider whatelements of the supply chain are required to be planned in SAP SCM. Through theuse of the CIF, you will have opportunities to consider several different masterdata objects in SAP ECC and Map them to a common type of master data object inSAP SCM called a LOCATION.



Figure 4: Locations in SAP SCM

The various location types are:

� Plant→ Production Plant (1001)� Plant→ Distribution Center (1002)� Transportation Zone→ Transportation Zone (1005)� Storage Location→ MRP Area (1007)� Customer→ Customer (1010)� Vendor→ Vendor (1011)� Vendor→ Carrier/Transportation Service Provider (1020)

Other location types such as Stock Transfer point, Terminal, or GeographicalArea are for industry specific solution.

Each location type will serve a specific purpose for planning which will bediscussed later.



Location Types in SAP SCM

1. SAP SCM menu path: Advanced Planning and Optimization→ MasterData→ Location→ Location

2. Perform a drop down on the location type field

SAP SCM Fields in the Location MasterThe Following Fields are SAP SCM specific data that will require user input toenhance the planning results

General Tab

Figure 5: General Data

Geographical DataLongitude and latitude are used for map placement and determining thedistance between two locations. These coordinates can be determinedautomatically using a third party geo-coding software.



PriorityEnter the value 1 for the highest priority. The higher the number entered,the lower the priority. If you do not enter a value, the system automaticallyassigns the value 0, giving the location the highest priority. Location priorityis used in the area of CTM. CTM: A control parameter used to assign aprocessing sequence to locations. The location priority is also used to set theprocessing sequence for location-dependent objects. TP/VS: Indicates thelocation priority for a cost profile. Orders for locations with a certain priorityreceive the appropriate penalty costs for non-delivery or delayed delivery.

Deletion FlagIf you wish to delete a location, you must carry out the delete operation intwo steps: Flag for Deletion and Delete Locations. This gives you the optionof preparing locations for deletion without actually deleting them at thattime. In this way you can schedule the actual deletion process for a laterpoint in time, not just for a single location but for several. You can carry outthe delete operation in the background. To be able to delete a location, youmay have to first eliminate any dependencies that still exist. Examples ofsuch dependencies: An ATP assignment for the location, or the assignmentof a product, model or resource to a location.

Collaboration PartnerAn independent entity in a collaboration process. You can assign morethan one planner to a partner. Dependencies In the collaborative process,partners are responsible for completing prerequisites for certain activities.Prerequisites are expressed as alerts and statuses which are created in theplanning book using advanced macros. In the forecast consensus process,there could be 4 activities: Activity 1: enter forecast 1 Activity 2: enterforecast 2 Activity 3: enter forecast 3 Activity 4: create consensus forecastbased on figures in forecasts 1, 2 and 3. A prerequisite for Activity 4 is thecompletion of activities 1, 2 and 3. As soon as the participants enter theirforecast figures in the planning book, the activities are assigned a status, forexample, Completed.

Address TabAddress

This information is brought in from SAP ECC . However, in SAP SCM thelocation description supports multi-lingual text.

CalendarsCalendars are used in SAP SCM to provide a time lag during planning to take intoaccount non-working days, holidays are one example.



Figure 6: Location Calendar Master Data

A planning calendar is based on a factory calendar and is mapped as a continualtime stream. Time streams not only provide the actual work days at the facility,but in addition provide the operating hours within a given work day. The basis ofthe SAP SCM time stream is a factory calendar. However, since SAP SCM canbe used as a detailed scheduling tool, users will need to plan down to hour oreven more detailed. Therefore for certain activities, users can limit the operatingtime during planning.

Time streams are SAP SCM data and are not part of the integration via the CIF.



TPVS

Figure 7: TPVS Location Master Data

CompatibilityVehicle/Location Defines which vehicles of those related to the locationshould be chosen. By setting this indicator, you can restrict the amount ofdata to run through the optimizer.

Transportation ZoneContains a transportation zone description. A location hierarchy must bemaintained for this. Used in location type Customer from location masterdata, the transportation zone is displayed if your particular location hasbeen assigned to it.

(Route) First Visit:The indicator set states that the location should be visited first during a tour.This information is important for the VS optimization run.

(Route) Last VisitThe indicator set states that the location should be visited last during a tour.This information is important for the VS optimization run.

Goods Wait time (max dur)Stock Transfer Duration hhhh:mm Defines the maximum duration a productmay remain in a location.



Pick Lead TimeIndicates the time required to make an order from the SAP SCM systemavailable before the material availability date of the OLTP system, so thatpicking can take place in the OLTP system based on the correspondingdeliveries.

Shipment Creation TimeTime Indicates the duration required for the transportation to be transferredfrom SAP SCM to the OLTP system, so that the appropriate shipmentdocuments can be created before loading begins.

Resources

Figure 8: Location Resource Data

Loading Resource (Inbound)Describes the resource used to load and unload a vehicle during a deliveryprocess. You must already have maintained a single-mixed or multi-mixedresource in the resource master. The handling resource must be assigned tothe location in the resource master.



Loading Resource (Outbound)Describes the resource used to load or unload a means of transport duringthe process of outward delivery. You must already have maintained asingle-mixed or multi-mixed resource as a handling resource in the resourcemaster. The handling resource must be assigned to the location in theresource master. If the same resources are to be used for the opening timesof inbound and outbound, they must be maintained at both positions.

Opening Hours of Location (Inbound/outbound)Indicates the resource for which opening times of this location are maintainedfor inbound delivery. Use this resource to perform Vehicle Scheduling. Thisresource must not be a bucket resource. You maintain the opening timesvia a Resource in the resource master. You define resource break timeswhen the location can not be accessed. You go directly to the resourcemaster by pressing the button Resource . Here you can display or change themaintained data of an existing resource. To create a resource, from the SAPSCM menu, choose Advanced Planning and Optimization→ Master data→Resource. If the same resources are to be used for the opening times ofinbound and outbound, they must be maintained at both positions.

Handling Resources (inbound/outbound)Handling resources will be used by Deployment and PP/DS to ensurethat any restrictions on handling product inbound and out bound will beconsidered and adjustments made to the plan accordingly.

Storage ResourceCombines the functions of a storage location (for example, InventoryManagement) with those of a resource (for example Capacity Planning).Storage location resources link a location with a resource. These resourcescan be time-based or quantity-based. It is necessary to maintain a resourcewith resource type S (storage location) in the resource master.



SNP

Figure 9: SNP Location Master Data

Category Group for StockIncludes category groups containing categories (for example, stockcategories, or production categories) that define which receipt and stockquantities contribute to the ATP quantity. A category is assigned to eachreceipt element. These categories can be grouped together in categorygroups, defined in customizing.

Category Group for ATD Quantity (Receipts)Category groups can include several ATP categories (such as various types ofstock, procurement or production receipt elements) that define which receiptand stock quantities contribute to the available-to-deploy quantity (ATDquantity). An ATP category is assigned to each MRP element that is receivedfrom SAP ECC . Defined in customizing, the ATP group, will arrive at aquantity per time bucket to determine the available receipt quantity that willultimately be compared to the issue quantity. Any settings in the locationmaster will override the default settings in the planning area configuration.ATP groups are configured under the SNP section. The planning areaconfiguration (9ASNP02) is defaulted to ATP group ATR.



Category type for ATD quantity (issues)Category groups which can define several different issue elements thatcontribute to the ATD quantity. An ATP category is assigned to each MRPelement that is received from SAP ECC . These categories can be groupedtogether into category groups. You should pay particular attention tocategories such as fixed issues that are not included in the ATD quantity.Defined in customizing, any settings in the location master will overridethe default settings in the planning area configuration. The planning areaconfiguration (9ANSP02) is defaulted to ATP group ATI.

Forbid PushIndicates that during a �Push� deployment run, the location with thisindicator set, can only receive quantities to cover demand. If the indicatorhas been set, the available supply will only be distributed according to dailyrequirements. The indicator can only be set for the active version. ExampleA location can be excluded from push deployment if, for example, it hasa limited storage capacity. It will then only receive quantities to meet itsdaily requirements.

Additional DataWithin the Location masters, SAP has allowed the use of several �user-�definedfields called Attributes. These fields can be used for informational purposes, orincluded in customer exits and or user defined heuristics (PP/DS).

An attribute is defined by its field and table name. A field name must bemaintained for this attribute in order for you to open a field in the product master.The definition of the field name can be language-dependent. An attribute isactivated when the language of the field name and the language in which you havelogged onto the system are identical, or when the field name was maintainedindependent of a language.

Figure 10: Additional �User� Fields in Location Master



In the ABAP workbench, users must first create the fields that will be used asattributes. The table that must be populated is /SAPAPO/LOCATT. Table/SAPAPO/LOCATT is included in the table /SAPAPO/LOC, which houses all thefields for the location master. The five fields that can be included in the locationmaster must currently use the following naming convention: ATTLOnn with�nn� from �01� to �05�. Currently only these fields will show up in the locationmaster. Once the fields are created and the tables are activated, then in order tosee the fields on the Addit. tab the fields must be released in Customizing beforethey become available.

Note: Only 5 attributes are currently allowed.

In Customizing, choose Advanced Planner and Optimizer (APO)→ Master Data→ Maintain Freely-Definable Attributes . Create a new entry and enter the fieldname, the table in which the field exists, select the activate indicator, and maintainthe text description which will be seen in the location master. Once this entry issaved the field will be available for input.

ATP Data

Figure 11: ATP Data

Business EventA selection of defined operations within a business. The selected businessevent initiates the ATP check. Example Incoming orders, sales, shipping.The location master contains the business event for backorder processing.When initiating interactive backorder processing, the system uses thelocation master to determine it in the product view. This is also the case forthe pre-assignment when starting interactive backorder processing and whenstarting the product availability view.



Delivery Priority

Product Allocation FieldsIf a particular location is to be included during product allocation activities,certain organizational data may be needed to execute the condition criteriaduring the ATP process.



Lesson Summary

You should now be able to:� Explain Concept of Locations in SAP SCM� Explain the purpose of the location master in SAP SCM, and what the

relevant SAP SCM specific fields are.



Lesson: Plants in SAP SCM

Lesson OverviewIn order to properly set up a supply chain model, users must be aware of whatlocations are relevant for planning and the differences between SAP SCM�Location types�. In this lesson you will explore the opportunities that SAP SCMwill provide to model both manufacturing locations (plants) and distributioncenters.


� Review Plant Data in SAP ECC� Explain the difference between a Plant and a Distribution center in SAP SCM� Explaining the results of Transferring plants to SAP SCM from SAP ECC

Business ExampleAssume you need to open a new distribution center (DC) in Chicago, IL, to handlea surge in demand in the Central part of the United States. Plant 90##, has beencreated in SAP ECC to model this new location. Review the details of plant 90##and transfer the location to you SAP SCM system via the CIF.

Plants in SAP ECCIn the SAP ECC system, plant is the only location that is relevant for any typeof planning. The main focus of a plant in SAP ECC is a cost/profit center. Aplant is where we store finished goods, work in process, and raw materials. Workis also performed at plants, and therefore we must plan and execute in greatdetail to support the collection of costs. In SAP ECC the definition of a plant isan organizational unit within a company, were valued goods and services are:produced, stored, consumed, or distributed. This is a definition that is relevant tothe financial world but not necessarily the logistics world. Users in the logisticsworld would require further definition. Is the plant a manufacturing location,distribution location, shipping point, or a service center.


SCM215 Lesson: Plants in SAP SCM

Figure 12: Plant Definition

In SAP ECC plants are configuration data so any changes or additions must bethrough the SAP ECC implementation guide versus, normal master data processes.In the configuration of a plant we will find information such as shipping address,factory calendar, and time zone. Once a plant is established it will then be attachedto a company code and other SAP ECC enterprise structures that are not relevantSAP SCM.



Display Plant Configuration

1. menu path: Tools→ Customizing→ IMG→ Edit Project

2. SAP Reference IMG

3. menu path: Enterprise Structure→ Definition→ Logistics-General→

Define, copy, delete, check plant

4. Choose Define Plant (Double click)

5. Select Plant 3100, and Details

Distribution CentersA typical distribution center is a physical location were finished goods are kept inanticipation of customer orders. The expectation is that there is very little if anymanufacturing taking place. Often times the only manufacturing is the assemblyof end cap displays, or items that are configurable by order.

In the SAP ECC there is no difference between a plant and a distribution center.They may end up belonging to two different company codes, however they areindifferent for planning purposes. Prior to release 4.0 of SAP ECC users could notdistinguish an SAP ECC plant as a manufacturing location or pure distributionlocation. In release 4.0 SAP released the first and only deployment functionalityin SAP ECC . No further development was done, since this was the predecessorto SAP SCM. With this functionality came configuration tables that would allowusers to distinguish plants as performing other supply chain functions, suchas distribution. This functionality did not add functionality to the �plant� butdid allow users to distinguish the difference between SAP ECC locations whenanalyzing the vertical supply chain. Currently in SAP SCM, there is no functionaldifference between a plant and a DC. DC�s will simply show up in maps as adifferent icon. The intention is that different activities will be performed at thetwo location types.

Plant to Location type MappingThrough configuration in SAP ECC we will choose the type of location. Usingthe Core interface (CIF), each plant will be mapped to its appropriate locationtype. A plant is transferred to the SAP SCM system with the location type1001 (production plant). For this, all basic settings associated with the plant aretransferred: name, address, time zone and regional assignment.

Additional data in the SAP SCM location: You can maintain the short text for SAPSCM locations in several languages (in comparison to the plant in SAP ECC ), sothat the relevant short text appears when logging on in a particular language. SAP



SCM locations generally contain a large number of additional planning parametersfor which there is no equivalent in SAP ECC . You have to maintain theseparameters directly in SAP SCM, as you cannot transfer them from SAP ECC .

DC to Location Master MappingDistribution centers and plants are the same object in SAP ECC , however we willmap certain plants as Distribution centers in SAP SCM. In order to separate thetwo functions, manufacturing and distribution, we need to label certain SAP ECCplants as distribution centers. This is done through configuration in the IMG.

Figure 13: SAP ECC Configuration for DC

The menu path in the IMG is Production→Distribution Resource Planning (DRP)→Basic Settings→Maintain assignment of node type - plant. Choose Allocation ofnode type in the pop-up. By locating the plant, users can then assign certain plantsas Distribution centers. In the configuration type other node types are availablebut only option DC - Distribution Center, is currently supported by the CIF.

User Define Changes in plant to Location MappingIn certain situations, users will find that the delivered functionality in CIF,does not meet specific needs of their implementation. In such cases, SAP hasdelivered user exist, that will allow customers to change the data, coming into,or leaving SAP SCM. The user exits for plants is: SAP ECC function module:CIF_PLANT_LOCATION_MAP. This function module will allow users tomake custom changes to the data, but still keep it in the SAP format.



During the initial data loads the CIF populates table /SAPAPO/LOCMAP. Thistable is where the source system value and the SAP SCM location value, aremapped one to one. As a result, users can see source system values in the actuallocation master, in the general tab under External Location Short Text

Figure 14: Source system Data



Display DC Configuration

1. SAP ECC IMG menu path: Production→ Distribution Resource Planning

(DRP)→ Basic Settings→ Maintain assignment of node type - plant

2. Double click on activity: Allocation of node type

3. Choose:

4. Enter Plant 90## and choose

5. Using the drop down options choose �DC �and



Exercise 1: Plant and Distribution Centersin SAP SCM

Exercise ObjectivesAfter completing this exercise, you will be able to:� Distinguish certain plants as Distribution centers for planning purposes.� Transfer Plants and Distribution centers from SAP ECC to SAP SCM.

Business ExampleDue to the tremendous growth of your business, you need to open a newDistribution Center (90##) in Charlotte, North Carolina, to handle your explodinglaundry detergent business. Plant 3100, Chicago, supplies both your new DC anda contract manufacturer with the bottled laundry detergent, and procures the rawmaterials for the manufacturing. The contract manufacturer, packages specialpromotional packages as required for supply to the DC.

Task 1: Display Production Plant Data in SAP ECCPlant 3100 will control most of the production and procurement in your supplychain. Review the configuration settings for Plant 3100, Chicago, and answerthe following questions.

1. Review the settings in your Chicago plant, 3100 and answer the followingquestions.

Continued on next page



2. What factory Calendar is assigned to plant 3100?

3. What time zone has location 3100 been placed in?

Task 2: Change New DC in SAP ECCNow that you have reviewed the data for your manufacturing plant, your newfacility in Charlotte, NC (Plant 90##) should be changed to represent a distributioncenter.

1. Plant 90## is a result a functional plant in SAP ECC . However for thepurpose of identifying appropriate supply chain activities we must classifythe new Plant as a Distribution Center. Change the node type of plant 90##,from Plant to DC.

Task 3: Integration of Plants and DCs with SAP SCMWith the plants now configured in SAP ECC we must transfer them to SAP SCMin order to begin building our supply chain within SAP SCM.

1. Create an integration model to transfer your new location 90## to SAP SCM. Use the following Data toclassify your integration model

Field Data

Model Name Group-##

Logical system APOCLNT8XX

APO Application Plants

Note: Upon exiting the transaction you will be asked to save as avariant. Typically location data does not change frequently enoughto warrant the creation of a variant. Later in the course we willuse this concept to pass changes to other master data that updatesoccur frequently.




2. Activate your integration model to transfer your new DC to SAP SCM.

Note: By entering only the Model Name we will see all theintegration models that your group will create over the during of theclass. Entering the Logical System and the APO Application willlimit the number of integration models that are retrieved.

Task 4: Confirm Data TransferIf you received a message that the transfer was complete, we will now reviewthe data that should exist in SAP SCM.

1. Review your new location data in SAP SCM for location 90##

2. What is the location type that has been assigned to your location 90##?

3. What is the Geographical data for your location? Your solutions will have anexample set of coordinates.

LongitudeSgnDeg.MinutesSecondsLatitudeSgn +Deg.MinutesSeconds




4. What time zone is your location in?

5. What Calendar is your location using and why?



Solution 1: Plant and Distribution Centersin SAP SCMTask 1: Display Production Plant Data in SAP ECCPlant 3100 will control most of the production and procurement in your supplychain. Review the configuration settings for Plant 3100, Chicago, and answerthe following questions.

1. Review the settings in your Chicago plant, 3100 and answer the followingquestions.

a) Menu Path:Tools→ Customizing→ IMG→ Edit Project

b) Choose: SAP Reference IMG

c) ECC Menu Path: Enterprise structure → Definition →Logistics-General→ Define, copy, delete, check plant→

d) Choose: IMG Activity

e) Choose: Define Plant (double click)

f) Select plant 3100, and choose Details (icon) or double click

2. What factory Calendar is assigned to plant 3100?

Answer: Plant 3100 is using the US factory calendar

3. What time zone has location 3100 been placed in?

Answer: Select AddressPlant 3100 is located in Central Standard Time (CST)




Task 2: Change New DC in SAP ECCNow that you have reviewed the data for your manufacturing plant, your newfacility in Charlotte, NC (Plant 90##) should be changed to represent a distributioncenter.

1. Plant 90## is a result a functional plant in SAP ECC . However for thepurpose of identifying appropriate supply chain activities we must classifythe new Plant as a Distribution Center. Change the node type of plant 90##,from Plant to DC.

a) IMG→Production→ Distribution Resource Planning (DRP)→ Basic

Settings→ Maintain assignment of node type - plant

b) Double click on Allocation of node type

c) Scroll till you locate location 90##, and in the Node type, enter DC- Distribution center

d) Select SAVE

Task 3: Integration of Plants and DCs with SAP SCMWith the plants now configured in SAP ECC we must transfer them to SAP SCMin order to begin building our supply chain within SAP SCM.

1. Create an integration model to transfer your new location 90## to SAP SCM. Use the following Data toclassify your integration model




Field Data

Model Name Group-##


APO Application Plants


a) Menu Path: Logistics→ Central Functions→ Supply Chain PlanningInterface→ Core Interface Advanced Planning and Optimizer→Integration Model→ Create

b) In the section marked �Material Dependent Objects�Select the checkbox Plant.

c) In the section marked �General Selection Options for Materials�enteryour new DC 90## in the Plant field.

d) Select Execute

e) In the filter object section place your cursor on Plant, and choose

Detail View

f) Select Selections

g) Select Save to Generate the integration model

h) Select Back twice to return to session manager.




2. Activate your integration model to transfer your new DC to SAP SCM.

Note: By entering only the Model Name we will see all theintegration models that your group will create over the during of theclass. Entering the Logical System and the APO Application willlimit the number of integration models that are retrieved.

a) Menu Path: Logistics→ Central Functions→ Supply Chain PlanningInterface→ Core Interface Advanced Planning and Optimizer→Integration Model→ Activate

b) Enter your Model Name Group-## and selectExecute

c) Select the integration model that contains your new DC

Hint: Look for the APO Application labeled Plants.

d) Select the line with the date and time stamp and select Details

view

e) Double click on the line labeled Plant

f) Use the Back to return to the activation/deactivation screen.

g) Select the line with the date/time stamp and select Set to active/inactive

h) Select Start Activation

Task 4: Confirm Data TransferIf you received a message that the transfer was complete, we will now reviewthe data that should exist in SAP SCM.

1. Review your new location data in SAP SCM for location 90##

a) Menu Path: Advanced Planning and Optimization→ Master Data→ Location→ Location

b) Enter Location 90## and select Enter

2. What is the location type that has been assigned to your location 90##?

Answer: If you configured the plant correctly in SAP ECC , location 90##should be Location type 1002, Distribution Center

3. What is the Geographical data for your location? Your solutions will have anexample set of coordinates.




LongitudeSgn - NegativeDeg. 76Minutes 46Seconds 12LatitudeSgn + PositiveDeg. 38Minutes 28Seconds 12

4. What time zone is your location in?

Answer: If configured correctly, EST - Eastern Standard Time


Answer: In SAP ECC we configured the Plant as using calendar US.However, in SAP SCM we have three separate calendars to model thedifferent locations. These will addressed later in the class.



Lesson Summary

You should now be able to:� Review Plant Data in SAP ECC� Explain the difference between a Plant and a Distribution center in SAP SCM� Explaining the results of Transferring plants to SAP SCM from SAP ECC


SCM215 Lesson: MRP Areas in SAP SCM

Lesson: MRP Areas in SAP SCM

Lesson OverviewAs a result we will gain a general understanding of when and where to use theconcept of MRP areas in SAP SCM and what if any limitations the MRP areahas in SAP SCM.


� Explain the concept and need for MRP areas in planning.� Review the configuration of an existing MRP Area and transfer it from SAP



the SAP SCM MRP area.

Business ExampleAssume you have requested one of your major customers to be involved incollaborative planning. In order to guarantee the inventory according to customerVMI-##�s forecast requirements, you decide to handle the customer�s demand ina separate MRP Area. MRP Area,MPRA-## has been created for you againststorage location V0## in DC 90##. Transfer this information to SAP SCM so thatyou can appropriately model you Supplier Managed Inventory process.

MRP Areas in SAP ECCIn SAP ECC ,MRP Areas are defined as an organizational unit for which youcan perform material requirements planning separately from the plant. An MRParea can include one or several storage locations of a plant or a vendor. You defineMRP areas within a plant. By defining MRP areas, you can perform MRP foreach area. This means the right quantity of materials can be provided on timefor each area, such as a production line, a storage location for spare parts, orsubcontractor stock. There a are three types of MRP areas in SAP ECC ; Plant,Storage Location, and Vendor/sub-contractor.

Note: Activating the MRP Area is a client level setting. All storagelocations that are not contained in the additional MRP areas andautomatically contained in the plant MRP Area



Figure 15: MRP Areas in SAP ECC

MRP areas were developed as of SAP ECC release 4.5a. In earlier releases ofSAP ECC , it was not possible to effectively segregate inventory and requirementswithin a plant during a planning run. Reorder point planning and Kaban are theexceptions. MRP areas were created to separate requirements and materials withina given plant. For example, organizations who deal in spare parts often generate aseparate stream of demand for spare parts sales. In order to keep respectable levelsof customer service, companies forecast this demand separately. In conjunctionit is possible to keep inventory set aside to handle this separate demand. Inaddition, this separate inventory if placed in a �Storage Location� MRP area,will not be included in the �plant �planning run, and not be considered for use inmanufacturing and assembly.

Similarly, if you sub-contract in SAP ECC , and supply your vendor with partsfrom one of your own plants, you would require vendor inventory to be keptseparate since it is not at the manufacturing location. With the use of �Vendor�MRP areas, any inventory kept at the vendor location is not considered availableinventory during a plant planning run.

Note: Storage locations can have separate addresses if necessary. Thiswould allow a plant which deals with sub-contracting to ship product to adifferent address if necessary. However, in SAP ECC you cannot separatethe transportation planning function of this different location effectively.



Figure 16: MRP Area Segment in the Material Master

When using MRP areas, users will assign specific materials within a given plantto the created MRP area. A material can belong to more than one MRP Area.This segregation of data will allow the user to define different parameters suchas lot size, special procurement key, consumption logic, period of adjustmentand checking rules.

Caution: At this time different planning strategies are not allowed inMRP areas, and will use the strategy from the material master or MRPgroup in the material master. MRP areas can have different MRP groups,which can identify strategy groups, but the strategy will stay consistentwith that of the material master.

Individual customer procurement (MTO) and project-related procurement canonly be planned at the plant MRP areas. Therefore only certain planning strategies(MTS) can function in the storage location and vendor MRP areas.

Procurement proposals generated from requirements planning relate to the MRParea. The MRP area is derived from the receiving storage location for plannedreceipts or from the issuing storage location for planned issues. If a storagelocation cannot be determined, the plant MRP area is assigned.

The MRP run can plan the following for stock transfers relevant to MRP areas

� Stock transfer from plant MRP area to plant MRP area: Stock transferrequisition

� Stock transfer from plant MRP area to the MRP area of a different plant:Stocktransport requisition

� Plant MRP area to a MRP area in the same plant: Stock transport reservation



Caution: The following are not supported:

� MRP area to MRP area in the same plant (rectified in SAP SCM 4.0and SAP ECC 4.7x2.0)

� MRP area to MRP area of a different plant (rectified in SAP SCM4.0 and SAP ECC 4.7x2.0)



Materials and MRP Areas

1. SAP ECC menu path Logistics→ Production→ Master Data→ MaterialMaster→ Material→ Change→ Immediately→

2. Enter Material ZAP-1##, at Plant 3100, and chooseMRP 1 view

3. Select the MRP Areas button at the bottom of the MRP 1 view

4. Enter MRP Area VMI-00 and Adopt.

5. Enter the following data

Field Value

MRP Group 0040

MRP Type X0

MRP Controller 2##

Lot Size EX

select Adopt TWICE

6. Select SAVE

Creating MRP Areas in ECCCreating MRP areas in SAP ECC is typically a two step process. You willeither create a new storage location in your plant to identify where the inventorysegregation needs to occur or use an existing location. The second step will be tocreate the actual MRP area and assign the appropriate storage locations.



Figure 17: Storage locations in SAP ECC

The Creation of a storage location in SAP ECC is done through configuration.Storage locations must be attached to a plant. They can represent different�warehouses� within a given facility such as spare parts, work-in-process, orfinished goods. Users are not limited to the number of storage locations in a givenplant, however storage locations are not designed to represent aisles, racks, orbins. You would use the Warehouse Management module to get to that level ofdetail. Currently SAP SCM does not go to that level of integration.



Figure 18: Storage location Addresses

In addition, when using SAP ECC sub-contracting where you will store inventorythat your organization owns, typically you will create a storage location ifnecessary. If your sub-contractor is a significant distance from your facility, youhave the option to give the storage location a different address. SAP ECC does notallow for the transportation duration during planning, however this is were SAPSCM will benefit organizations using the SAP ECC sub-contracting functionality.

Note: For planning purposes in SAP SCM, location is the lowest level inwhich inventory is stored. Storage location (sub locations) is consideredtransactional data or �characteristic data�, when not utilizing MRP areas.Storage locations are only considered in GATP in SAP SCM.



Figure 19: MRP Area Configuration in SAP ECC

As mentioned earlier, in SAP ECC MRP areas can exist in three different forms,plant, storage location, and vendor. One plant MRP area is automatically createdfor every plant in the client. Storage location and vendor will be created manually.Storage location will have one receiving storage location, but many sendingstorage locations.

In SAP ECC sub contractor MRP areas, only one vendor can be assigned.However, in SAP SCM we will not use the MRP area to model sub-contracting,but instead we will use the purchasing contracts to model this.



MRP Area Configuration in SAP ECC

1. SAP ECC IMG menu Path Enterprise Structure→ Definition→ MaterialsManagement→ Maintain storage location

2. Select plant 3100

3. Note the three VMI storage locations

4. Select storage location VMI and double click on address of storagelocation.

5. Select New Entries

6. Enter a 1, and note the address screen that pops up

7. Back out without saving

8. SAP ECC IMG menu Path Enterprise Structure→ Definition→ MaterialsManagement→ Maintain storage location

9. Select the Position button at the bottom of the screen and enter VMI

10. Select MRP area VMI-00 and select Details.

11. Double click on Assign Storage Location to view which storage locationsare assigned to VMI

Creating MRP Areas in SAP SCMIt is recommended that MRP Areas should be transferred to SAP SCM in aseparate integration model. There will be two parts to the data transfer:

1. Transfer MRP Areas2. Transfer MRP Area Materials



Figure 20: Transferring MRP Areas to APO

Note: Prior to SCM 4.0, MRP Areas with only one storage location willbe transferred to SAP SCM. MRP Areas with more than one storagelocation can be created in ECC .

Caution: This is a problem for SAP SCM. Prior to release 4.0, SAPSCM can only handle one storage location which should be the receivingstorage location. If users try and transfer an MRP area with more the onestorage location assigned, they will receive an error when generatingthe integration model.



Transfer MRP Areas and Materials to SAP SCM

1. SAP ECC menu path: Logistics→ Central Functions→ Supply ChainPlanning Interface→ Core Interface Advanced Planner and Optimizer→Integration Model→ Generate→ Create

2. Enter the following Data:

Field Value

Model Group-##

Logical System APOCLNT8XX

APO Application MRP Areas

3. SelectMRP Area Matl andMRP Areas indicators

4. Use plant 3100, MRP type X0 and MRP controller 2## as your GeneralSelection Options.

5. Select Execute and then Select SAVE.

6. SAP ECC menu path: Logistics→ Central Functions→ Supply ChainPlanning Interface→ Core Interface Advanced Planner and Optimizer→ Integration Model→ Activate

7. Select your Model Group##, Logical System APOCLNT8XX, andApplication MRP Area

8. Select Execute

9. Highlight your integration model by selecting it with your mouse, and selectSet to Active/Inactive.

10. Select Start Activation

MRP Areas in SAP SCMDuring transfer through the CIF the SAP ECC plant MRP area is mapped aseither a production location or a Distribution Center, based on configuration inSAP ECC . Storage location MRP areas are mapped as locations with their ownlocation type 1007.



Figure 21: MRP Area Locations in SAP SCM

As a result of the transfer we now have a location that will have similarfunctionality to that of the plant and DC. In viewing the location master, onecan see that the location is linked to the SAP ECC plant and storage locationto support the ECC processes.

MRP Areas in the Supply Chain NetworkIn SAP SCM, you can plan stock transfers between MRP areas. In SAP ECC upuntil now, you used a relevant special procurement type to represent stock transferbetween a plant and an MRP area in the plant. This special procurement type isentered in the material master record for a material in the storage location MRParea. As of SAP SCM 4.0, a transportation lane is created automatically in SAPSCM between the plant and the storage location MRP area during the transfer ofthe material master. You only have to create transportation lanes in SAP SCMmanually if you want to represent a stock transfer between two storage locationMRP areas in a plant.

You can transfer storage location MRP areas with several storage locations to SAPSCM. The receipt storage location of the storage location MRP area from SAPECC is automatically the leading storage location in SAP SCM. The system usesthe leading storage location as follows:

� The system assigns the requirements and receipts, which a planningapplication in SAP SCM creates in the storage location MRP area, to theleading storage location as standard.

� If the rules-based ATP check in the sales order determines a storage locationMRP area, the system enters the leading storage location in the sales order.It is not possible to perform a check on the two levels of storage locationMRP area and storage location in the sales order.



In SAP SCM, for stock transfers to or from a storage location MRP area, you canspecify a storage location other than the leading storage location in the storagelocation MRP area as the issuing storage location or as the receiving storagelocation. The system automatically assigns the requirement or receipt of a stocktransfer to the issuing or receiving storage location.

MRP Areas in SNP (prior to SCM 4.0)After an SNP planning run, the MRP area stock transport requisitions that weregenerated in APO, are converted into ECC stock transport reservations that can beintegrated in SAP ECC . In SAP ECC , the stock transfers are executed using thetransactions intended for this in inventory management. If the production is alsobeing planned and the PPM contains components, component planning is onlypossible if the components are also in the plant MRP area.

MRP Areas in CTM (prior to SCM 4.0)Stock transfers between MRP areas can also be planned in CTM. Here, the sameprerequisites apply as for SNP (creation of transportation lanes). After a CTMplanning run, the MRP area stock transport requisitions that were generatedin SAP SCM are converted into SAP ECC stock transport reservations that canbe integrated with SAP ECC

MRP Areas in PP/DS (prior to SCM 4.0)PP/DS planning with MRP areas is currently only supported in a restricted form:

� Resources and PPMs can only be transferred to the plant MRP area location.BOMs and rountings can not exist at the storage location level.

� PP/DS planned order components that are not planned in the same MRPareas as the PP/DS planned order have to be procured in SAP SCM usingstock transfers. This is because there is no dynamic location determinationfor component withdrawals. This is different than the process in SAP ECC. Currently SAP SCM has no need of issue storage location informationsince that is execution related data.

� Stock transfers to and from MRP areas or between MRP areas are onlymapped with stock transport reservations in SAP ECC during integration.Stock transport requisitions and stock transport orders are not supported,due to this ECC limitation.

MRP Areas and Sales order processing (prior to SCM 4.0)Sales order processing is already largely supported. The only exception is thecalculation of sales orders with forecast requirements in the MRP area location.

For the ATP check in SAP SCM, you must create rules (location substitution) tobe able to execute cross-MRP-area checks.



Seamless Integration of MRP Areas in SCM 4.0The MRP areas are seamlessly integrated in SCM 4.0. You can do forecasting onMRP area level for products and components. During sales order processing therules based ATP can be used for plant/ MRP areas determination. Restriction hereis that an ATP check should only be executed on MRP area level and not storagelocation level. The ATP check during sales order entry determines the leadingstorage location of an MRP Area. That storage location will be assigned in thesales order and used for delivery. An ATP check on storage location level couldget misleading results. The process of production cross locations and componentwithdrawal without stock transfer is also available for SNP and CTM. MRP areasare also integrated in the compare refresh tool of the Core interface. The toolchecks accurate assignment of locations.

Caution: In SAP SCM 4.0 here are still some restrictions regarding MRPareas. MRP areas are not cross plants, cross countries or cross time zones.

� You can not assign storage locations from different plants to a MRParea, only from one plant.

� It is not possible to maintain storage location MRP areas which havebeen transferred from ECC . ECC is the leading system.

� You can transfer the changes with the delta transfer using the Coreinterface.

Note: The process with stock transfer requisitions and stock transferorders between storage location MRP areas will be available as standardwith ECC Enterprise Core Release 4.7, Enterprise Extension 2 andPI2003.1.

Note: In exceptions, customers can implement that process with ECC4.6c on a project base This is a major ECC modification and needs projectagreement. Please also have a look on the following note 601885 forrelease restriction,

Source of Supply NotesThe sources of supply for external procurement (like contracts, info records) andin-house production in SAP ECC are automatically distributed to the plant locationand the storage location MRP areas for which they are relevant. The assignmentis based on storage location information in the external procurement sources ofsupply and in the production versions in SAP ECC .

A Production Process Model can be used in multiple locations. There are validityrules for SAP ECC -production versions, PPMs, and PP/DS Run Time Objects.Production versions without receiving storage location are valid for plant and allits MRP Areas. Production versions with receiving storage location are valid onlyfor the location (plant or MRP Area) of this storage location.



Exercise 2: MRP Areas in mySAP SCM(OPTIONAL)

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create Storage locations in R/3� Create MRP Areas in R/3� Transfer MRP Areas to SAP SCM� Explain the difference between MRP Areas and the other location types.

Business ExampleYou have requested one of your major customers (VMI-##) to be involved in acollaborative planning process. In order for the customer to justify the cost, theyhave requested that you �guarantee� their forecasts will be supplied. In order toaccomplish this, you have decided to handle the customers demand in a separateMRP Area. You need to create MRP areaMPRA-##, for storage location V0##in DC 90##.

Task 1: Create MRP Area in SAP R/3We will create two storage locations at your plant 90##. Location 0002 will befor finished goods inventory. In order to guarantee the customer will have theinventory they helped forecast, we will create a separate storage location (V0##),to house their requirements. In order to keep these requirement and inventoryseparate from the rest of the DC�s requirements and inventory during planing, wewill create an MRP Area (MRPA-##) for this new storage location.

1. In SAP R/3, several a storage locations , were created that will containfinished goods inventory for different purposes. Reiview the storagelocations.

2. What storage locations have been created for you new plant 90##?

Task 2: Create MRP Area in SAP R/3Now that we have more organizational data configured to support our supplychain in SAP R/3, we need to customize it more for planning purposes. NowCreate the MRP area that will eventually be transferred to SAP SCM to supportthe collaborative planning process.

1. Create a storage location MRP area ((MRPA-##), VMI-## MRP Area foryour new VMI storage location VMI, in plant 90##.




Task 3: Transfer MRP Area to SAP SCMWith all the configuration now complete in SAP R/3 transfer the MRP Area toSAP SCM and explain the results.

1. Create and integration model to transfer your new MRP area MPRA-##, toSAP SCM. Use the following Data to classify your integration model

Field Data

Model Name Group-##


APO Application MRPArea

Note: Only when the similar message appears have you successfullygenerated and integration model:


2. Activate your integration model to transfer your MRP Area to SAP SCM.

Note: By entering only the Model Name we will see all theintegration models that you group will create over the during of theclass. Entering the Logical System and the APO Application willlimit the number of integration models that are retrieved.

Task 4: Confirm Data TransferIf you received a message that the transfer was complete, we will now review thatdata that should exist in APO

1. Review your new location data in APO for locationMRPA=##




2. What is the location type that has been assigned to your locationMRPA-##?

3. What is the Geographical data for your location?

Select Change

LongitudeSgnDeg.MinutesSecondsLatitudeSgn +Deg.MinutesSeconds




4. Is it the same as your plant?

5. What time zone your location in?

6. Considering this is a �Location �in SAP SCM , will where the data flow backto in SAP R/3 for actual execution?




Solution 2: MRP Areas in mySAP SCM(OPTIONAL)Task 1: Create MRP Area in SAP R/3We will create two storage locations at your plant 90##. Location 0002 will befor finished goods inventory. In order to guarantee the customer will have theinventory they helped forecast, we will create a separate storage location (V0##),to house their requirements. In order to keep these requirement and inventoryseparate from the rest of the DC�s requirements and inventory during planing, wewill create an MRP Area (MRPA-##) for this new storage location.

1. In SAP R/3, several a storage locations , were created that will containfinished goods inventory for different purposes. Reiview the storagelocations.

a) Menu path: SPRO→ Reference IMG→ Enterprise Structure→Definition→ Materials Management→ Maintain Storage location

b) Select IMG-Activity

2. What storage locations have been created for you new plant 90##?

a)

Sloc Description0001 Warehouse 00010002 Warehouse 00020088 Centr. WarehousePH01 Pharma MES stor.PH02 Pharma MES/TRMVMI Main VMI Stg LocVMI1 VMI 1 Stg LocVMI2 VMI 2 Stg Loc

Task 2: Create MRP Area in SAP R/3Now that we have more organizational data configured to support our supplychain in SAP R/3, we need to customize it more for planning purposes. NowCreate the MRP area that will eventually be transferred to SAP SCM to supportthe collaborative planning process.

1. Create a storage location MRP area ((MRPA-##), VMI-## MRP Area foryour new VMI storage location VMI, in plant 90##.




a) IMG Menu Path: Production→ Materials Requirements Planning→Master Data→ MRP Areas→ Define MRP Areas

b) Select IMG Activity

c) Select New Entries

d) Enter the following data:

Field Name DataMRP Area MRPA-##

Description VMI-## MRP Area

MRP area Type 02 - (StorageLocation)

Plant 90##

e) Press Enter

f) Enter your receiving storage location: VMI.

g) Select Save

Note: As a result of the IMG entry you may get a pop upwindow to create a transport request.

IF a transport request ID exists choose Continue (enter) IfNo request ID is available, continue with the next solution step.Otherwise skip to the next exercise step

h) Select Create request

i) Enter a description �Group ## �

j) Select Save

k) Select Continue (enter)

Note: Do not exit transaction

Task 3: Transfer MRP Area to SAP SCMWith all the configuration now complete in SAP R/3 transfer the MRP Area toSAP SCM and explain the results.

1. Create and integration model to transfer your new MRP area MPRA-##, toSAP SCM. Use the following Data to classify your integration model




Field Data

Model Name Group-##


APO Application MRPArea




b) In the section labeled General Selection Options for materials, enteryour Plant 90##.

c) In the section marked �Material Dependent Objects�Select the checkbox MRP areas.

d) Select Further restrictions

e) In the section labeledMRP Areas, enter your new storage locationVMI.

f) Select Execute

g) In the filter object section place your cursor onMRP Areas, and

choose Detail View

h) Select Selections

i) Select Save to Generate the integration model

j) When the message box appears confirming model has been generated,

Select Continue (enter)

k) Select Back twice to return to session manager.




2. Activate your integration model to transfer your MRP Area to SAP SCM.





Hint: Look in the APO Application forMPR Areas.


view

e) Double click on the line labeledMRP Areas





1. Review your new location data in APO for locationMRPA=##

a) Menu Path: APO→ Master Data→ Location→ Location

b) Enter LocationMRPA-## and select Enter

2. What is the location type that has been assigned to your locationMRPA-##?

Answer: If you configured the MRP area correctly in SAP R/3, locationMRPA-## should be Location type 1007, MRP Area


Select Change





4. Is it the same as your plant?

Answer: Yes - the geographical coordinates are the same. However, inthe configuration of the storage location in R/3 you could have a differentaddress for a given storage location. For example a storage location mayhave been set up to mirror a sub-contractors location. There for you wouldwant material shipped to a different physical location other than the plant.


Answer: If configured correctly, CST - Central Standard Time

6. Considering this is a �Location �in SAP SCM , will where the data flow backto in SAP R/3 for actual execution?

Answer: Plant 90## storage location VMI. In the General Tab of thelocation master, there is a new section added for MRP Area. Here you willfind the planning location (plant) and the sub location (storage location).This will tell SAP SCM were to send the data back to in SAP R/3.


Answer: In SAP R/3 only plants, shipping points and capacities can havecalendars. Even if a storage location has a different address it is not allowedto have a different calendar in SAP R/3. However, in SAP SCM we havethree separate calendars to model the different locations. This is totallynew functionality so this will be SAP SCM functionality. These will beaddressed later in the class.



Lesson Summary

You should now be able to:� Explain the concept and need for MRP areas in planning.� Review the configuration of an existing MRP Area and transfer it from SAP



the SAP SCM MRP area.


SCM215 Lesson: Transportation Zones in SAP SCM

Lesson: Transportation Zones in SAP SCM

Lesson OverviewIn this lesson we will explore the need and the purpose of transportation zones,and their importance in SAP SCM.


� Explain the purpose of a transportation zone in SAP SCM� Create a transportation zone in SAP ECC

Business ExampleAssume your company�s supply chain consists of numerous customers that receiveproducts from both the plants and the DCs. In order to decrease the amount ofmaster data relevant for planning, your company will use transportation zones, andattach these to the networks. You need to review an existing transportation zone0##, in SAP ECC and transfer it to SAP SCM. This new location can then be usedto support your transportation planning and vehicle scheduling process.

Transportation Zones in SAP SCMTransportation zones are an integral part of planning in TP/VS. A transportationzone is a master data hierarchy that is built within SAP SCM as a result oftransferring customers via the CIF. TP/VS consists of the two partial componentsTransportation Planning and Vehicle Scheduling.



Figure 22: Transportation Zones in SAP SCM

Transportation Planning is concerned with middle to long-term planning;Vehicle Scheduling encompasses short-term planning and leg determination.Transportation Planning enables the transportation planner to make optimum useof the available capacity of freight vehicles, trains, ships, and airplanes. In thisway, loading capacities can be planned more efficiently and costs are lowered,especially since most customers depend completely on external transportationcompanies for optimum transportation. In short, Transportation Planning resultsin deliveries that are on time and at minimum cost.

Vehicle Scheduling (VS) is a component for short-term planning. In VehicleScheduling, the resources and transportation processes are maintained in detail toallow for very exact planning. When the orders from Supply Network Planningare converted to VS orders, the following occurs: The orders are put in a certainsequence The exact move time is determined. Information and operations that arestill required are added (this will be data and operations that are not requiredfor Supply Network Planning but are necessary for Vehicle Scheduling, such asloading activities)

The TP/VS component contains the following functions:

� Transportation planning and transportation consolidation

� Vehicle scheduling and route determination in a dynamic environment

� Transportation mode and selection of transportation service provider� Multi-pick and multi-drop functions. Management by exception



In order to accomplish the above mentioned tasks, specific information about theship-to is needed, such as Address, and delivery date possibilities. This kind ofinformation can be found in the SAP SCM location master, and transportationlanes would then identify shipping methods, and durations in accordance withthose methods. Considering the number of ship-to locations some organizationscould be dealing with, this solution is impractical. As part of the planningfunctionality in TP/VS, we will do basic route planning against transportationzones. During the vehicle scheduling process, the optimizer will create temporarytransportation lanes based on the longitude and latitude information in the locationmaster. This minimizes the amount of SAP SCM master data that must beconstantly maintained.

Transfer Transportation ZonesTransportation zones will originate in SAP ECC as configuration data. It will beup to the organization to determine how many transportation zones to create.For example, one transportation zone per state may not be enough detail, but atransportation zone for every postal code, would be too much data to maintain ona consistent basis. Once configured, transportation zones will then be assignedas master data to each ship-to location customer master record that gets createdin SAP ECC , that requires transportation planning.

Figure 23: Transportation Zone Configuration in SAP ECC



Once assigned to the customer master, the transportation zone will be transferredto SAP SCM via the CIF when a customer master that is attached to the particularzone is transferred to SAP SCM. Being a different object type than the plant, thetransportation zone will be created as a location type 1005 in SAP SCM, and inaddition, a master data hierarchy will be generated to support the relationshipbetween one transportation zone and many customer locations.

Figure 24: Transportation Zones as Hierarchies in SAP SCM

The use of ship-to�s is not required in SAP SCM. If necessary, organizations cansimply define transportation zones in SAP SCM. However, taking this approachwill require the use of several configuration tables that will allow mapping to takeplace between the planning and execution data, that will be transferred betweenSAP SCM and the OLTP systems.

After the transportation zone is transferred to SAP SCM, outside of the locationnumber that will be given the prefix of the country code followed by thetransportation zone key. For example if transportation zone �Chicago�was createdfor the US, the location would be transferred to SAP SCM as US-Chicago. Inaddition to the naming convention the location will have no additional data andusers will have to maintain the geographical coordinates. This can be donemanually by entering address information such as country, state, or postal code.Another options users have is to run a transaction in SAP SCM called �CalculateTransportation Zone Coordinates�.



Figure 25: Calculating Geographical Coordinates in SAP SCM

This program enables you to convert the existing SAP ECC transportation zonedata into the geographical coordinates of a geo-location for the location typetransportation zone (location type 1005). The calculation of the transportationzone coordinates is carried out using a geo-coding program. In geo-coding, theassociated geographical longitude and latitude are determined for the address data.This data can be used to calculate the distance between two business partners.Geo-coding is carried out with degrees of precision. Geo-coding can take placeby country, by region, by postal code, by place, by street, or by house number.The SAP geo-coding program supplied works at the country and region level.If several locations are attached to the transportation zone, using the customerlocations, the program will calculate an approximate address in the center of thecustomer locations



Creating Transportation Zones in SAP ECC

1. SAP ECC IMG Menu Path Logistics Execution→ Transportation→ BasicTransportation Functions→ Routes→ Route Determination→ DefineTransportation Zone

2. New Entries

3. Using the Drop Down features choose:

Country US

Transportation Zone APO-##

Description APO Group ##

4. Save



Lesson Summary

You should now be able to:� Explain the purpose of a transportation zone in SAP SCM� Create a transportation zone in SAP ECC



Lesson: Customers in SAP SCM

Lesson OverviewIn this lesson we will explain and demonstrate when and how to include customersin the modeling process for planning in SAP SCM


� Explain when and how to include customers in your SAP SCM model.� Review a simple customer master in SAP ECC� Explain the results of transferring Customers from SAP ECC to SAP SCM� Explain the differences between a customer location and plants and

distribution centers in SAP SCM.

Business ExampleAssume your company�s supply chain consists of numerous customers that buyyour product from distribution center, 90##. One customer, VMI/SMI-##, requiresyour company to manage its inventory in a VMI/SMI (Vendor/Supplier ManagedInventory) relationship, so you need set this up. In addition, you have just landed amajor account, CUST-##, that will be handled through traditional make-to-stockplanning. This must be set up too.

Customers in SAP SCMSAP ECC defines the customer as, A business partner with whom a businessrelationship exists, involving the issue of goods or services. When dealingwith SAP SCM we need alter this definition as to how customers relate to�planning�. When considering how a customer will be involved in planning, wemust consider there are two types of planning which involves customers, tacticalplanning and operational planning. The term most often used for customers beinginvolved in tactical planning is Vendor/Supplier Managed Inventory (VMI/SMI),or prioritizing production resources (manufacturing or materials). The othersituation in which we would consider the customer relevant to planning is during


SCM215 Lesson: Customers in SAP SCM

Transportation Planning/Vehicle Scheduling (TPVS). Sales orders are generatedin SAP ECC and transferred to SAP SCM as movement data. Very little data fromthe SAP ECC sales order is stored in SAP SCM.

Note: If during planning in SAP SCM, your organization requiresprioritization of sales orders by customer number, the correspondingcustomer location must exist in SAP SCM . This will allow planners touse the customer number during planning (BOP and CTM planning runs).Keep in perspective that if the customer is not a VMI/SMI customer,they will typically not be attached directly to the supply network, butmore likely to a transportation zone.

During the implementation of SNP or PP/DS, your organization will have todecide how the customer will be used in planning.

Figure 26: Customer Planning in SAP SCM

Transportation PlanningDetermination of all dates relevant for transportation, based on the deliverydate. The system uses this to determine when transport activities must startto meet the requested delivery date.

In SAP SCM, the module Transportation Planning/Vehicle Scheduling, is designedto plan the actual shipment(s) to one or more customers. TP/VS will work inconjunction with the SAP ECC delivery processing. This functionality will requirethe use of customers and their geographic locations in order to calculate distancesand durations during an optimization planning run. The issue that arises is one ofmaster data maintenance. In order to do proper planning we would have to link all



of your shipping locations to all possible�ship-to�s�, which is not cost effective.Using transportation zones (hierarchy) we will connect the customer indirectly tothe network to support the TP/VS planning.

Note: Transportation zones will be cover in a later lesson.

Customer Master in SAP ECCUnlike the plant which is configuration data, the customer master is master datain the SAP ECC system. The customer master can consist of one sold-to, andmany ship-to�s. Therefore the data which is assigned to the customer master sitson several different organizational levels (tables), which not are all relevant forSAP SCM. Much of the data for the customer is relevant for pricing and reporting,neither of which is data relevant to SAP SCM. The customer master groups datainto three views: general data, sales area data, and company code data.

Figure 27: SAP ECC Customer Master

� The general data is relevant for sales and distribution and financialaccounting. The general data is stored centrally (client specific), in order toavoid data redundancy. It is valid for all organizational units within a client.

� The sales area data is relevant for sales and distribution, and is differentfor each sales organization.

� The company code data is relevant for financial accounting.



The customer master includes all data necessary for processing sales orders,deliveries, invoices, and customer payments.

Customer Master mapping to Location type 1010 inSAP SCMSimilar to the plant functionality, very little information transfers from thecustomer master to the location type 1010 Customer. Simply the customer number,description, and address are passed from SAP ECC to SAP SCM. However, sincethe origin of the data is a different object type, a location type 1010 will be usedto identify customers.

Figure 28: Customer Location in SAP SCM

Note: Note that the location type does not belong to the location tablekey and that this can lead to naming conflicts. If both the vendor and thecustomer have the same number in the SAP ECC system (for example,customer 1000 and vendor 1000), you need to rename one of themwhen entering them into SAP SCM by using the customer exit for thevendor master record (for example, you can rename the vendor S1000).If you do not do this, the system is unable to differentiate between thetwo locations. (Reason: The location type is a key field in the table/SAPAPO/LOCMAP, but only an attribute in the table /SAPAPO/LOC).

As part of the standard functionality of the CIF, if using account groups that haveinternal numbering, leading zeros will be automatically added to the customernumber.



Figure 29: Customers in the Integration Model

Note: If any changes need to be made in relation to the data transferyou can use the following:

� CIF_CUSTOMER_LOCATION_MAP - (ECC )� /SAPAPO/CIF_LOC_INBOUND - (APO)� /SAPAPO/DM_LOCATION_MAINTAIN - (APO)

� EXIT_SAPLCLOC_001 (CIFLOC01) - (ECC )� EXIT_SAPLCLOC_002 (CIFLOC01) - (ECC )� EXIT_SAPLCLOC_003 (CIFLOC01) - (ECC )� EXIT_SAPLCDC5_001 (CIFLOC02) - (ECC )� EXIT_/SAPAPO/SAPLCIF_LOC_001 - (APO)� EXIT_SAPMMDUSER_004 (APOMD004) - (APO)

� Object type: BUS10002

BAPI: BAPI_LOCSRVAPS_SAVEMULTI_30A

� Customer exit: EXIT_SAPL10002_001

(APOBP003)

In the table /SAPAPO/MAPLOC, location type is a key. Unlike SAP ECC , inSAP SCM the text description of the customer master can be multi-lingual.

Similar to the plant and DC location types, the geographical data can be calculatedduring the transfer process using Geo-Coding.



Figure 30: SAP SCM Customer Location type 1010

Geo- CoderTool for specifying the latitude and longitude of a location. The geo-coder isused to convert address data (for example, 523 Canada Road, Chicago, IL60601) into exact GEO-coordinates.

SAP provides an interface for third-party vendors of geo-coding programs. Thisinterface describes how a company developing geographical information systems(GIS) can attach its geo-coding program to the SAP system. Thus, third-partyvendors can offer a complete geo-coding package with regard to implementation,delivery, and Customizing. The geo-coding interface is valid for SAP�s basisreleases 4.6C, 4.6D, and 4.7. You are not required to set up a user interface. Thedialog box for selecting an address is part of the SAP geo-coding framework.For more information on Geo Coding, see the SAP SCM Online help �Interfacefor Third-Party Geo-Coding �.

The use of the remaining fields will depend upon how the customer will be usedin SAP SCM and for what type of planning. Calendars will be important to bothVMI/SMI and TP/VS planning in order to specify the operating dates and times ofthe customers off loading capabilities. Typically the fields for TP/VS will not be



relevant since you will not have all of the inbound data for all other shipments thata customer is receiving. If the customer is relevant for VMI/SMI Planning thenboth the SNP data and the VMI/SMI customer data become relevant.

Note: As of release 4.0 of SCM, a Receiving calendar was added tothe location master. This enhances the ability to plan by allowing SNP,PP/DS, DEPL, or TLB to account for the non-work days at VMI/SMIlocations. Additionally for TPVS, it will give the logistics executionfolks more visibility in planning when receiving can actually take place at�ship-to� location.

SNP Data

Figure 31: SNP Data in the Location Master

In this particular tab most of the fields will be irrelevant for the customer sincethey will be receiving the stock which will take place out side of SAP SCM andSAP ECC . Deployment runs will be executed at the plant, however certain dataat the receiving end is relevant. Since typical customers will not be connected tothe network this information is only valid with VMI/SMI customers. VMI/SMIlocations will be treated in planning as if they were your own location.

The one field that is relevant is the Push not allowed indicator. Since we areresponsible for the inventory level at the customer in a VMI/SMI relationship,traditionally we will ship only what the customer requires. During a deploymentscenario with your locations, you may force the inventory build up at the DC tomake room at the plant for new production. By forbidding pushing to this locationwe prevent any unplanned or unwanted inventory build at a VMI/SMI location.



VMI DataThis tab only appears in location type 1010, customers, and is SAP SCM masterdata. Again this tab is only relevant for VMI/SMI customers. VMI/SMI locationswill typically be the only customer locations directly attached to your supplynetwork. Typical �Ship-to�customers will be attached to your network via atransportation zone.

Figure 32: VMI/SMI Data in SAP SCM

Here we see a series of new fields relevant to the sales order processing. As aresult of either deployment or truck load builder, stock transports will be convertedinto sales orders as a result of SAP SCM planning.

Location for sold-to partyLocation that represents the VMI/SMI customer in their role as thesold-to-party in the SAP SCM system. A VMI/SMI customer is mappedthrough locations in the SAP SCM system. A location represents theVMI/SMI customer such as the sold-to-party. Further locations can representdistribution centers or sites of the VMI/SMI customer as ship-to-party. Viathe field �Location for sold-to party� you assign the location that representsthe VMI/SMI customer as the sold-to-party.

Location - External Name at VMI/SMI CustomerDescription used by the VMI/SMI customer for this location. This fieldis used, for example during communication via EDI, in order to find thecorresponding location in SAP SCM for a description of the VMI/SMIcustomer for a store or distribution center.



Promotional Quantities Indicator

The business partner (operator of the location) calculates the forecast for thenumbers of a promotion himself. The following values are possible:

� S - Only the requirements for the usual turnover quantities are madeavailable by the business partner (turn = total forecast; promotionquantity = sales - total forecast).

� P - Only the requirements for the promotional quantities are madeavailable by the business partner (basic turn = 0; promotion = sales).

Extended Forecast ConsumptionThis indicator controls the consumption of the forecast with the sales ordersthat the VMI/SMI customer receives from his customers. You can storethese sales orders in the key figure 9ATSSALES. If you enter the value "1"in this field, the system uses the "standard" logic, to use the usual forecastconsumption. If you enter "0" in this field (initial), the system uses the"maximum" logic. This logic is based on the maximum of the sales ordersand the forecast.

Sales Distribution FieldsPrior to release 4.0 of SCM, these fields were used to support the salesorder creation process for VMI/SMI customers. This information would berequired for SAP SCM to trigger the creation of a sales order that resultedfrom a deployment or truck builder planning run.

Note: As of release 4.0 of SCM, the maintenance of the sales areashifted from the customer location master to CIF customizing. InCustomizing, your assign the sales area (for which you created thesold-to party in Create Customer Master Record) to your sold-toparty and delivering plant. The enhancement is located in the SAPSCM IMG under Integration with Other mySAP.com Components→ Advanced Planning and Optimization→ Application-SpecificSettings and Enhancements→ Settings and Enhancements for SalesOrders→ Settings for Vendor-Managed Inventory (VMI)→ AssignSales Area and Order Type to Ordering Party/Plant. It is nowpossible to deliver a VMI customer from supplying plants belongingto different sales areas. Additionally, order type of VMI orders inSAP ECC can now be maintained in CIF customizing.

Customers vs Plants/DCsUnlike SAP ECC , customer locations can now be handled similarly to a plant inSAP ECC . One difference is that the transactional data will not come throughthe CIF. It would typically be handled via EDI exchange, or by ALE betweentwo �SAP ECC � systems. Similar to that of the plant, stock movements willbe modeled via stock transport request in SNP and PP/DS. When it is time to



deploy and ship, SAP SCM can instruct SAP ECC to convert the stock transferto a sales order. This functionality is the reason for the additional VMI tab. Foreach customer location we will ship to, we need the relevant ECC organizationaldata to automate the sales order process.

Note: As of release 4.0 of SAP SCM, VMI customers can transmit datato SAP SCM via an XML format. If you wish to use the ExchangeInfrastructure (XI) to send XML messages for product activities, thesemessages are processed in SAP SCM, which means that stock and timeseries are updated in the SAP SCM liveCache.

The XML message supports the following fields for the SAP SCM update:

� Sold-to party� Ship-to party� Product� Sales� Promotion sales� Sales forecast� Promotion sales forecast� Shortfall quantity� Current stock� Open purchase order quantity

In the SCM Implementation Guide (IMG), chooseAdvanced Planning andOptimization→ Supply Chain Planning→ Supply Network Planning(SNP)→ Vendor-Managed Inventory→ Maintain Settings for XMLMessages: Users then Assign the planning version to the planning area fora key figure, to the ship-to party, and to an InfoObject.



Exercise 3: Create and TransferCustomers SAP SCM

Exercise ObjectivesAfter completing this exercise, you will be able to:� Display a simple customer master� Transfer a customer to SAP SCM

Business ExampleYour company�s supply chain consists of numerous customers that buy yourproduct from distribution center, 90##. One Customer, VMI-##, requires yourcompany to manage its inventory in a VMI relationship. In addition, you havejust landed a major account, CUST-##, that will be handled through� traditional�make-to-stock planning.

Task 1: Display a Customer MasterYou have acquired a new customer, who has asked you to do theinventory/replenishment planning for them.

1. Display a customer master (sold-to party, APO Customers) that will representyour new customer CUST-## , at sales org 3000, distribution channel 10,division 00.

Note the information on the address tab.

2. What Country and State is Cust-## located in?

3. What is the Transportation Zone assigned to your customer?

Task 2: Integration of Customers with SAP SCMWith the Customers now configured in SAP ECC we must transfer them to SAPSCM in order to begin building our supply chain within SAP SCM.

1. Create and integration model to transfer your customerCUST-## andVMI-## to SAP SCM. Use the following Data to classify your integrationmodel




Field Data

Model Name Group-##


APO Application CUST_SUPP

Note: Upon exiting the transaction you will be asked to save asa variant. It is a good idea to always save integration models asa variant. Save your selections as variant Cust_supp## with thedescription GR ## Customers and Suppliers.

2. Activate your integration model to transfer your Customers to SAPSCM.


Task 3: Confirm Data TransferIf you received a message that the transfer was complete, we will now reviewthat data that should exist in SAP SCM.

1. Review your new location data in SAP SCM for location VMI-##

2. What is the location type that has been assigned to your location VMI-##?

3. What is the Geographical data for your location?NOTE:Answers may differ slightly from the solutions due to Geo-coding offof the zip code!




LongitudeSgnDeg.MinutesSecondsLatitudeSgnDeg.MinutesSeconds



6. Review your new location data in SAP SCM for location CUST-##

7. What is the location type that has been assigned to your location CUST-##?

8. Review your new location data in SAP SCM for location US-APO-##




9. What is the location type that has been assigned to your locationUS-APO-##?

10. What is the Geographical data for your location?NOTE: Answers may differ slightly from the solutions due to Geo-coding offof the zip code!

11. We are going to use the country and state as the means of aggregatingCustomers for planning purposes in TPVS. Enter the country where yourDC is located.

12. Did the change in address update the Geo-coordinates?

13. Update the address with the state in which your customers are located.

14. Were the geo-coordinates updated and to what level of precision?

15. Review the Details of your transportation zone hierarchy



Solution 3: Create and Transfer CustomersSAP SCMTask 1: Display a Customer MasterYou have acquired a new customer, who has asked you to do theinventory/replenishment planning for them.

1. Display a customer master (sold-to party, APO Customers) that will representyour new customer CUST-## , at sales org 3000, distribution channel 10,division 00.

Note the information on the address tab.

a) Menu PathLogistics→ Sales and Distribution→ Master Data→Business Partner→ Customer→ Display→ Sales and Distribution

b) Enter Cust-## in initial screen and select Continue (enter) .

2. What Country and State is Cust-## located in?

a)

Field ValueCounry USState NC - North Carolina

3. What is the Transportation Zone assigned to your customer?

Answer: Transportation Zone APO-##

Task 2: Integration of Customers with SAP SCMWith the Customers now configured in SAP ECC we must transfer them to SAPSCM in order to begin building our supply chain within SAP SCM.

1. Create and integration model to transfer your customerCUST-## andVMI-## to SAP SCM. Use the following Data to classify your integrationmodel




Field Data

Model Name Group-##



Note: Upon exiting the transaction you will be asked to save asa variant. It is a good idea to always save integration models asa variant. Save your selections as variant Cust_supp## with thedescription GR ## Customers and Suppliers.


b) In the section marked �Material Independent Objects�Select the check

box Customer,and select Special Restrictions .

c) In the section marked �Customer�enter *-## in the Customer field.This will pick up all customers with your group number.

d) Select Execute

e) In the filter object section place your cursor on Customer, and choose

Detail View



h) Select Back to return to your integration model selection.

i) Select Save create your variant as Cust_Supp## with thedescription GR ## Customers and Suppliers. .

j) Select Back twice to return to session manager.




2. Activate your integration model to transfer your Customers to SAPSCM.



b) Enter your Model Name Group-## and select Execute


Hint: Look in the APO Application for Cust_supp.


view

e) Double click on the line labeled Cust_supp




Task 3: Confirm Data TransferIf you received a message that the transfer was complete, we will now reviewthat data that should exist in SAP SCM.

1. Review your new location data in SAP SCM for location VMI-##


b) Enter Location VMI-## and select Enter

2. What is the location type that has been assigned to your location VMI-##?

Answer: Based on standard functionality in the CIF your location should beclassified as a type 1010, customer!


NOTE:Answers may differ slightly from the solutions due to Geo-coding offof the zip code!






Answer: If configured correctly, CST - Central Standard Time


Answer: None, because in SAP ECC customers do not have calendars.

6. Review your new location data in SAP SCM for location CUST-##


b) Enter Location CUST-## and select Enter

7. What is the location type that has been assigned to your location CUST-##?

Answer: Based on standard functionality in the CIF your location should beclassified as a type 1010, customer!

8. Review your new location data in SAP SCM for location US-APO-##


b) Enter Location US-APO-## and select Enter

9. What is the location type that has been assigned to your locationUS-APO-##?

Answer: Based on standard functionality in the CIF your location should beclassified as a type 1005, Transportation Zone!





NOTE: Answers may differ slightly from the solutions due to Geo-coding offof the zip code!

Answer: No, longitude or latitude was found. The transportation zone wasnot given any address information.

11. We are going to use the country and state as the means of aggregatingCustomers for planning purposes in TPVS. Enter the country where yourDC is located.

a) In the address section enter in the country fieldUS in the Addresssection.

12. Did the change in address update the Geo-coordinates?

Answer: Return to the General tabYes, based on the precision, the geo-coordinates were updated to theprecision of the country.

13. Update the address with the state in which your customers are located.

a) In the address tab change the region to NC

14. Were the geo-coordinates updated and to what level of precision?

Answer: Return to the General TabYes, the geo-coordinates are more precise, at the Region (state) level.

15. Review the Details of your transportation zone hierarchy

a) SAP SCM Menu PathAPO→ Master Data→ Hierarchy→

b) Choose TZone, Select Continue (enter)



Lesson Summary

You should now be able to:� Explain when and how to include customers in your SAP SCM model.� Review a simple customer master in SAP ECC� Explain the results of transferring Customers from SAP ECC to SAP SCM� Explain the differences between a customer location and plants and

distribution centers in SAP SCM.


SCM215 Lesson: Suppliers in SAP SCM

Lesson: Suppliers in SAP SCM

Lesson OverviewIn this particular lesson we will discuss how and when vendors should beconsidered during the supply chain planning process. You will gain anunderstanding of the structure of a vendor master in SAP ECC and it�s counterpartin SAP SCM. Understand, whether it be for purchasing raw materials on a periodicbasis, contractual obligations, or contract manufacturing, how will these situationsimpact the SAP SCM environment. In addition, you will learn how to set upvendor master records to represent transportation service providers such as carriersand how this information is related to SAP SCM processes.


� Transfer a vendor to SAP SCM� Explain the difference between a vendor location and the other locations


Providers/Carriers in SAP ECC and SAP SCM.

Business ExampleAssume that in order to manufacture a bottled finished good ZAP-1##, yourmanufacturing plant 3100 procures the bottles from supplier 60005 througha scheduling agreement. The caps are procured from vendor 3910 usingconsignment stock and from vendor 3930 through normal purchase orders. Inaddition, you have just negotiated with supplier VEN-##, to begin receiving yourfinished good from your manufacturing plant 3100. This vendor will then createpromotional packages for supply to DC 90##.

You need to transfer vendor master data in your SAP ECC System to representthe carriers that will be used to transport raw materials and finished goods inyour supply chain network. These vendors need to be copied to SAP SCM andestablished as Transportation Service Provider (TSP)/Carrier Locations. In SAPSCM transportation planning TSP�s can be assigned to shipments using the carrierselection optimizer, and you decide to do this.

Suppliers in SAP ECCIn SAP ECC the definition of Vendor is a business partner from whom materialsor services can be procured. Similar to the customer master in SAP ECC , thevendor master is master data. Whether it be created for a one time purchase or apartner that your organization will engage in continuous business.



Figure 33: Organizational levels in the Procurement process

The vendor master will be affected by the same organizational structure as aplant, except that vendors will also require the use of a purchase organizationand purchasing group.

Purchasing organization:An organizational level that negotiates conditions of purchase with vendorsfor one or more plants. It is legally responsible for completing purchasingcontracts. A purchasing organization is assigned a unique four-characteralphabetic, alphanumeric, or numeric key.

Purchasing GroupA Business defined key for a buyer or group of buyers responsible for certainpurchasing activities. Internally, the purchasing group is responsible for theprocurement of a material or a class of materials. Externally, it is the mediumthrough which contacts with vendors are maintained.

The purchasing organization is responsible for the company�s purchasingrequirements. You can incorporate purchasing into the company structure byassigning the purchasing organization to company codes within plants. This meansyou can determine whether purchasing is organized centrally or de-centrally inyour company. You can have a combination of centralized and decentralizedpurchasing organizations. You can organize your purchasing function in thefollowing ways: corporate group-wide purchasing, company-specific purchasing,or plant-specific purchasing. All forms can co-exist within a single client.



Vendor Master RecordIn SAP ECC , the vendor master will be maintained by two groups; Accountingdue to accounts payable aspect, and Materials Management due to impact oncorporate procurement. Due to this �separation�, the Vendor Master will bemaintained or divided into three categories:

General DataThis includes the vendor�s address and bank details, for example. This datais valid for the entire client

Purchasing DataThis includes the purchase order currency, incoterms, and the vendors taxdata. This data is maintained for each purchasing organization. In addition,plant-dependent values can be maintained.

Accounting DataThis comprises data such as the number of the reconciliation account and thepayment methods for automatic payment transactions. This is maintained atcompany code level.

Carriers/Transportation Service Providers (TSP�s) inSAP SCMVendor master records that represent freight carriers/forwarding agents are createdwithin the SAP ECC System using Account Group code 0005. Within the vendormaster data, in the Control tab, there are several fields that are relevant only forcarriers. These fields are:

SCAC- the Standard Carrier Access Code (used only in North America to identifyfreight carriers. The SCAC code is copied to the SAP SCM Carrier/TSPLocation Master record to the �Crr� tab (APO 3.0) or the �TSP� tab (APO3.1 +)

Carrier Freight Group- used in ECC shipment costing to determine freight classification codes thatare used in determine freight rates in shipment costing.

Service Agent Procedure Group- used in ECC freight costing to determine the pricing procedure to beassigned to the item categories in the Shipment Cost documents.



Figure 34: Location Type: Vendor/Carrier/Service Provider

When carrier/forwarding agent vendor master records are transferred to SAPSCM they cause Location Master records of Location Type 1020 to be created.The carrier/TSP�s can then be assigned to the appropriate transportationmethods within transportation lanes in which they are to be used. In SAP SCMTransportation/Vehicle Scheduling (TP/VS) carriers/TSP�s can be assigned toplanned shipments either manually or automatically using Carrier/TSP selection.The carrier must exist in both the ECC System and SAP SCM as master data.

Because both customer and vendor master data exists in the SAP SCM Locationmaster data, if customer and vendor masters in the SAP ECC System have thesame number ranges, any vendor master having the same account number asa customer master must be renamed. A user-exit exists for this purpose so thatduring the transfer of SAP ECC master data any vendor account number that is aduplicate of a customer master can be renamed automatically. For example, if acustomer master and a vendor master exists with the account number 1000, thevendor master could be renamed to, say, V1000.



Exercise 4: Display Vendor and CarrierMaster Records

Exercise ObjectivesAfter completing this exercise, you will be able to:� Display and maintain vendor master records in SAP ECC .� Display and maintain carrier master records in the Vendor master file in

SAP ECC� Update the master data integration model that will transfer master data from

the SAP ECC System to SAP SCM .

Business ExampleIn order to manufacture a bottled finished good ZAP-1##, your manufacturingplant 3100 procures the bottles from vendor 3990, through a scheduling agreement.The caps are procured from vendor 0000100153, using consignment stock andthrough vendor 0000100154, through normal purchase orders. In addition, youhave just negotiated with vendor VEN-##, to begin receiving your finished goodfrom your manufacturing plant 3100. This vendor will then create promotionalpackages for you supply to DC 90##.

You have negotiated freight contracts with two carriers, JR Trucking (JRT-##)to provide freight hauling between your plants/DC�s, Vendors and Customers.Vendor master records must be established for each carrier.

Task 1: Review Vendor MasterYour purchasing department has just signed a contract with vendor JRT-## to handa signficant amount of you shipping between sites. However, JRT-## does nothave enough capacity to handle all your shipping needs, so they will need to bemodeled as a constrating in SAP SCM.Purchasing has already created the masterdata for VEN-##. Review the data in SAP ECC before transferring it to SAP SCM.

1. Review the address and control data in the vendor master for vendor JRT-##,and fill in the relevant planning information.

Field DataVendor JRT-##

Company Code 3000 - IDES US INC




Field DataPurchasing Information 3000 -IDES USA

Address Select

Control Select

2. What is the name of the vendor?

3. Where is the vendor currently located?

Task 2: Transfer SAP ECC Vendor and Carrier MasterData to SAP SCMVendor VEN-## will be assembling a promotional item that will include a finishedgood produced by plant 3100, In light of the manufacturing situation at plant3100, we need all the demand present in SAP SCM for proper planning. SinceVEN-## will be generating dependent demand on Plant 3100 in the form of stocktransport orders, we will need to include VEN-## in the SAP SCM planningmodel. Vendors could have been transferred automatically without a specificintegration model if external relationships are transferred through the CIF.This will discussed in another lesson regarding external procurement.

The new carrier, JRT-##, will be assigned by the Carrier Selection functionwithin the SAP SCM TP/VS component. The new vendor VEN-## will be usedfor subcontracting. Therefore, they will need to be added to the master dataintegration model so that SAP SCM Location master data can be created for them.

Task 3: Integration of Vendors with SAP SCMWith the Vendors and carriers now configured in SAP ECC we must transfer themto SAP SCM in order to begin building our supply chain within SAP SCM.

1. Change your existing integration model to transfer your vendors JRT-## andVEN-## to SAP SCM. Use the following Data to classify your integrationmodel




Field Data

Model Name Group-##



2. Activate your integration model to transfer your customers and vendors toSAP SCM.



1. Review your new location data in SAP SCM for location JRT-##

2. What is the location type that has been assigned to your location JRT-##?



Solution 4: Display Vendor and CarrierMaster RecordsTask 1: Review Vendor MasterYour purchasing department has just signed a contract with vendor JRT-## to handa signficant amount of you shipping between sites. However, JRT-## does nothave enough capacity to handle all your shipping needs, so they will need to bemodeled as a constrating in SAP SCM.Purchasing has already created the masterdata for VEN-##. Review the data in SAP ECC before transferring it to SAP SCM.

1. Review the address and control data in the vendor master for vendor JRT-##,and fill in the relevant planning information.

Field DataVendor JRT-##

Company Code 3000 - IDES US INC

Purchasing Information 3000 -IDES USA

Address Select

Control Select

a) Menu Path

Logistics→ Materials Management→ Purchasing→ Master Data→ Vendor→ Central→ Display

b) Select Address and control data

2. What is the name of the vendor?

Answer: JR Trucking.

3. Where is the vendor currently located?

Answer: Chicago, IL




Task 2: Transfer SAP ECC Vendor and Carrier MasterData to SAP SCMVendor VEN-## will be assembling a promotional item that will include a finishedgood produced by plant 3100, In light of the manufacturing situation at plant3100, we need all the demand present in SAP SCM for proper planning. SinceVEN-## will be generating dependent demand on Plant 3100 in the form of stocktransport orders, we will need to include VEN-## in the SAP SCM planningmodel. Vendors could have been transferred automatically without a specificintegration model if external relationships are transferred through the CIF.This will discussed in another lesson regarding external procurement.

The new carrier, JRT-##, will be assigned by the Carrier Selection functionwithin the SAP SCM TP/VS component. The new vendor VEN-## will be usedfor subcontracting. Therefore, they will need to be added to the master dataintegration model so that SAP SCM Location master data can be created for them.

Task 3: Integration of Vendors with SAP SCMWith the Vendors and carriers now configured in SAP ECC we must transfer themto SAP SCM in order to begin building our supply chain within SAP SCM.

1. Change your existing integration model to transfer your vendors JRT-## andVEN-## to SAP SCM. Use the following Data to classify your integrationmodel




Field Data

Model Name Group-##




b) Enter the data from the table above in the selection fields.

c) Select Execute .

d) Find the line labelled �Vendor�, select it with the mouse and then

select Modify this

e) In the section marked �Material Independent Objects�Select the check

box Vendor,and select Special Restrictions .

f) In the section marked Vendor select Special Restrictions . enterJRT-## and VEN-##..

g) Select Execute .

h) In the Change integration Model screen, select ADD tomodel

i) Select Save to Generate the integration model

j) Select Back twice to return to session manager.




2. Activate your integration model to transfer your customers and vendors toSAP SCM.




c) Select the integration model that contains your new vendor

Hint: Look in the APO Application for CUST_SUPP.

d) Select the line with the date and time stamp and selectDetails view

e) Double click on the line labeled Vendor


g) Select the line with the date/time stamp and selectSet to Active/Inactive



1. Review your new location data in SAP SCM for location JRT-##

a) SAPSCM Menu Path: APO→ Master Data→ Location→ Location

b) Enter Location JRT-## and select Enter

2. What is the location type that has been assigned to your location JRT-##?

Answer: Based on standard functionality in the CIF your location should beclassified as a Location Type 1020, Transportation Service Provider.



Lesson Summary

You should now be able to:� Transfer a vendor to SAP SCM� Explain the difference between a vendor location and the other locations


Providers/Carriers in SAP ECC and SAP SCM.


SCM215 Lesson: Calendars and Time Streams

Lesson: Calendars and Time Streams

Lesson OverviewIn this lesson you will learn about Factory Calendars and Time Streams. Thesepieces of master data can be transferred from SAP ECC or created manuallyin SAP SCM. Factory calendars and time streams will be used in locations,resources, and transportations lanes to offset schedule due to the object in questionnot being available.


� Describe the layout and purpose of a factory calendar� Identify options for integrating SAP ECC factory calendars with SAP SCM


Business ExampleYour company buys, distributes, and sells products from many different locations.In order to properly plan the replenishment cycle we need to know the operatingpatterns of certain locations. By modeling calendars and time streams we will beable to identify by location the days of operation as well at the times a location isavailable for certain supply chain activities.

SAP ECC Factory CalendarsThe public holiday and factory calendar is a central module in many SAPSystems. It is used in many areas (e.g. in Logistics and in Human Resources) inthe standard version. The main function of a factory calendar is to determinewhich days your location is working and which days the facility or resource isnot available for work.



Figure 35: Maintaining a Factory Calendar

You can use calendar maintenance to maintain and display the components of thecalendar system. The public holiday and factory calendar data calculated fromcalendar maintenance is directly available to the system. You can only change theholiday and factory calendar in the clients setup for them. The client must havethe "Customizing" role and the "Repository and cross-client Customizing changesallowed" attribute. You must have maintenance authorization for the calendar. Afactory calendar is allocated to your plant via another Customizing function.

The calendar system consists of the following components:

� Public holidays - Definitions for public holidays; Calculation rule for date,religious denomination etc.

� Public holiday calendar - Any composition of public holiday rules.� Factory calendar - Definition of workdays including special regulations,

under the assignment of a particular public holiday calendar.



Display an SAP ECC Factory Calendar

1. SAP ECC IMGMenu path:General Settings→ Maintain Calendar

2. Select Public Holidays and select Change

3. Select any Holiday for your region and select Display Definition. )

4. Select Create. Show the students that you can use fixed days orcalculated days based on a fixed point in time (Easter). Return to the mainmenu for the factory calendar.

5. Select Holiday Calendar and select Change.

6. Choose a calendar from your region and select Display Definition. Return tothe main menu for the factory calendar.

7. Select Factory Calendar and select Change.

8. Choose a calendar from your region and select Display Definition. Return tothe main menu for the factory calendar.

Transferring Factory Calendars from SAP ECC to SAPSCMIn order to assure that your planning (SAP SCM) and your execution system (SAPECC ) are properly integrated, you need to guarantee that the timing is correct inboth systems. One of the major integration points is the factory calendars. If youwe to recreate these manually you risk getting the calendars out of sync. Usingfunctionality delivered in the SAP BW, companies can transfer calendars from oneor more logical systems using standard SAP functionality .

Figure 36: Transfer SAP ECC Factory Calendars.



You can move global settings and parameters such as Units of Measure Definitions,Fiscal Variant Definitions, Factory Calendars, Currency Definitions and exchangerates from SAP ECC into SAP SCM via standard routines available in the SourceSystem tab in Administrator Workbench (SAP BW functionality). Use the SAPSCM menu path: Advanced Planning and Optimization→ Demand Planning→Environment→ Current Settings→ Administrator Workbench (RSA1).

Figure 37: Transferring Global Settings from SAP ECC

In the Data modeling sections choose the source systems tab. You can use thisfor most Source System definitions; in this case we would will use the SAP ECCsystem. Select the Source System and right-mouse click on Transfer Globalsettings. You can transfer select four types of data all at once or any one alone �there are no inter-dependencies or pre-dependencies among these. SAP suggestedthat you take the option to update the tables rather than rebuild them, that way youwill not lose any SAP SCM specific values that have been created. In addition,if you are loading from several source systems, you want to maintain any sourcesystem specific values.



1. SAP SCM menu path: Advanced Planning and Optimization→ DemandPlanning→ Environment→ Current Settings→ Administrator Workbench(RSA1)

2. On the left side Select Modeling.

3. Select Source Systems

4. Locate the ECC system IDES ECC Client 800 (T90CLNT800). Rightmouse click and select Transfer Global Settings.

5. Select Factory Calendar and Simulation. Select Execute.

SAP SCM Calendars and Time Streams

Figure 38: Time Streams in SAP SCM

A time stream is based on a factory calendar and is mapped as a continual timestream. Time streams not only provide the actual work days at the facility, but inaddition provide the operating hours within a given work day. The basis of theSAP SCM time stream is a factory calendar. However, since SAP SCM can beused as a detailed scheduling tool, users will need to plan down to hour or evenmore detailed. Therefore for certain activities, users can limit the operating timeduring planning.



Figure 39: Location Calendar Master Data

Creating planning calendars is a four step process:

1. Create a Factory Calendar (not required)2. Define the duration and type of calendar3. Define a calculation profile for the number of periods per calendar period4. Identify exceptions to the normal operation hours and days.

Note: During the creation of the factory calendar, you should considerwhat calendars are being used in ECC . Calendars configuration willnot transfer through the CIF. However, the configuration a factorycalendar in SAP SCM is identical to that of ECC . Therefore, using theSAP Correction and Transport Service (CTS) the configuration can betransferred to the SAP SCM system at the operating system level.

The factory calendar consists of three parts:

1. Public Holidays (non working days)2. Holiday calendar (all non working days in a year3. Factory calendar, which consists of the number of days per week, holiday

calendar, and the first work day of a week.



Figure 40: Time Stream Header

In the setup of the time stream users can define the following:

� Enter how many years into the past the calendar is to extend. ( optional)� Enter how many years into the future the calendar is to extend.

Note: If you do not make an entry in this field, the system considersthe current year only.

� The time zone for the location to which this calendar is assigned.� Select one of the following calendar options, depending on the location or

transportation lane associated with this calendar: Factory calendar with gaps( select a pre-defined calendar) Period calendar without gaps



Figure 41: Time Stream period Calculations

Select the Periods icon to define the periods for this calendar. At this time youmust select the required time interval (week, month, or shift) that the time streamis to define. . The interval is displayed in weeks, months, or shifts accordingly.The information you enter in this step depends on whether you selected weekor month for the time interval:

� If you selected week, assign numbers 1 - 7 (1 for Monday, 2 for Tuesday, andso on) to the periods and enter the required times.

� If you selected month, assign numbers 1 - 5 in the first column for the weeksin a month, and number 1 - 7 in the second column for the days of the week.



Figure 42: Time Stream Period Validity

Enter the required times for which the activities will be available.

By selecting the Generate icon you will now create the periods based on theduration and factory calendar settings

Note: generate the periods again when you have changed the calculationrules

Production calendarA calendar that is created for scheduling production activities. A productioncalendar is assigned to a location and is valid for the entire productionprocess. Production calendars are used when a resource is not available toprovide more detailed data. For example, a calendar at a Vendor, will be usedin conjunction with the planned delivery time in order to sequence and placethe requirements on the appropriate days. However, if resource is availablethe resource will dictate workdays and work times.

Warehouse calendarA warehouse calendar regulating the accessibility of a storage facility forstock put away and removal purposes is assigned to a location. This calendaris created for scheduling storage activities. For example, the warehouse isonly open from 8 a.m. to 5 p.m., therefore the system will take these timeswhen planning to deliver or ship product to/from a location.



Shipping calendarA calendar that is created for scheduling shipment activities. A shipmentcalendar is assigned to a location and is valid for the entire shipment process,which could entail the receiving or shipment of incoming/outgoing products.

Receiving Calendar (New SCM 4.0)The receiving calendar is created to schedule goods receiving activities. Areceipt calendar valid for the entire goods receipt process is assigned to alocation.

Display Calendar (PP/DS)The display calendar is used for externally procured products in theProduction Planning Table in PP/DS. If you have not maintained the displaycalendar, the system uses the production calendar.



Display SAP SCM Time Streams

1. SAP SCM menu path: Advanced Planning and Optimization→ MasterData→ Location→ Location

2. Enter location 3100 and select Change

3. Goto the Calendar tab.

4. To the right of the production calendar select Parameters

5. Enter time stream ID LOC3100, and select Change

6. Review the Header Data tab, noting factory calendar US is the basis of thetime stream to identify work/non-working days.

7. Select the Calculation rule tab to see what working times per day have beenset.

8. Select the Periods tab to review the individual working days and hours forthe continuous time stream.



Lesson Summary

You should now be able to:� Describe the layout and purpose of a factory calendar� Identify options for integrating SAP ECC factory calendars with SAP SCM



SCM215 Unit Summary

Unit SummaryYou should now be able to:� Explain Concept of Locations in SAP SCM� Explain the purpose of the location master in SAP SCM, and what the

relevant SAP SCM specific fields are.� Review Plant Data in SAP ECC� Explain the difference between a Plant and a Distribution center in SAP SCM� Explaining the results of Transferring plants to SAP SCM from SAP ECC� Explain the concept and need for MRP areas in planning.� Review the configuration of an existing MRP Area and transfer it from SAP



the SAP SCM MRP area.� Explain the purpose of a transportation zone in SAP SCM� Create a transportation zone in SAP ECC� Explain when and how to include customers in your SAP SCM model.� Review a simple customer master in SAP ECC� Explain the results of transferring Customers from SAP ECC to SAP SCM� Explain the differences between a customer location and plants and

distribution centers in SAP SCM.� Transfer a vendor to SAP SCM� Explain the difference between a vendor location and the other locations


Providers/Carriers in SAP ECC and SAP SCM.� Describe the layout and purpose of a factory calendar� Identify options for integrating SAP ECC factory calendars with SAP SCM



Unit Summary SCM215


Unit 3Materials/Product Masters

Unit OverviewThe lessons in this unit will cover the transfer of materials masters in SAP R/3 tothe product master in SAP SCM. Additionally, students will engage in discussionsas to where it is appropriate to particular materials, in either SAP SCM or SAP R/3.


� Explain when and how items will be transfer to SAP SCM� Transfer several of your materials to SAP SCM from SAP ECC� Navigate and identify SAP SCM master data and SAP ECC master data.� Explain and perform basic steps in using user/additional data fields in SAP

SCM.� Navigate and identify SAP SCM master data and SAP ECC master data.� Create Profiles to support the maintenance of SAP SCM specific data.� Use mass processing techniques to update product masters with new profiles� Explain and perform basic steps in using user/additional data fields in SAP

SCM.

Unit ContentsLesson: Materials and Product Masters ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122

Procedure: Activate Freely-Definable Attributes ... . . . . . . . . . . . . . . . . . . . .168Exercise 5: Materials and product masters in SAP SCM .... . . . . . . . . .169

Lesson: SAP SCM Product Master Data .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179Exercise 6: Products in SAP SCM ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .187


Unit 3: Materials/Product Masters SCM215

Lesson: Materials and Product Masters

Lesson OverviewIn this lesson we will become familiar with the Product master layout in SAPSCM. In the process we will identify what fields are SAP SCM master data andwhich fields remain linked to the SAP ECC material master.


� Explain when and how items will be transfer to SAP SCM� Transfer several of your materials to SAP SCM from SAP ECC� Navigate and identify SAP SCM master data and SAP ECC master data.� Explain and perform basic steps in using user/additional data fields in SAP

SCM.

Business ExampleYou must complete the SAP SCM master data to enable SAP SCM planning. Tomake data maintenance more efficient you need to explore additional techniquesincluding mass maintenance, profiles, and central master data maintenance forboth SAP SCM and SAP ECC systems.

Modeling Materials in SAP SCMIn order to proper plan inventory levels and production/purchasing of materials,it is required that we have the master data to support the pertinent descriptiveinformation and the necessary control parameters for each material. In SAP ECC ,companies will create aMaterial Master for every material that needs to becosted, inventoried, manufactured/purchased, and sold. In SAP SCM, a similarobject will be needed call the product master. One of the requirements in SAPECC when creating a material master is to define at the client or global level, whatMaterial Type a particular material is (finished good, raw, or semi-finished good).This is necessary for the costing and inventory management models.


SCM215 Lesson: Materials and Product Masters

When planning in SAP SCM, material type is a relevant parameter. It may help indeciding which materials will be planned by SAP SCM or SAP ECC , howeverit has no functionality in SAP SCM. One of the important parameters in an SAPSCM implementation is making sure you have selected the correct group ofmaterials to be planned out sided of your SAP ECC or OLTP system.

� The product runs on a capacity constrained resource� The product has a limited or constrained supply.� The material is stored/manufactured in multiple locations and cross-location

planning must be done.� The product runs on more than one resource� The product has more than one valid bill of material at any time.� The product is used in many higher level assemblies and

prioritization/allocation may need to be done.� Push production is required due to excess component inventory or limited

shelf life.� The product as a variable procurement time linked to the lot size of the order� The product is sourced from multiple vendors

Transferring Material Masters to SAP SCMIn order to support a significant amount of your SAP SCM data modeling, youwill be required transfer materials masters from SAP ECC to your SAP SCMsystem. To do this we will use the CIF.



Figure 43: Integration Model for Material Masters

When Generating integration Models each customer should decide how manyintegration models are necessary to transfer all SAP SCM relevant materials.For example you may wish to create integration models by MRP controller,to decentralize the maintenance. Another option may be to break the materialsdown into their material type and use that as a method for grouping materials. Inaddition it would be feasible to configure multiple MRP types that are copies ofX0 and are used simply to group materials for transfer.

However you choose to set up your material master integration models, ensurethat the models can be recreated every night and include any new materials thatare going to be introduced to your business and are SAP SCM relevant.

Note: When you activate the integration model, the materials are sent toSAP SCM and created there. In addition, in the plant segment (tableMARC) for the material, the indicator APOKZ (material relevant forAPO) is set to 3 (is active in the integration model (automatically set)).

Product Master LayoutSimilar to it�s counter part in SAP ECC , the product master in SAP SCM hasdata on two levels. Global data, which is relevant at any planning location, andlocation specific data, which is only applicable to a specific location. Global data

tabs are identify by the header symbol. Location data tables are identifiedby symbol. Some tabs however, like the SNP 1 and ATP data tabs, have



fields that are on both the global and location level, and are indicated by thesymbol. In situations where data is present at both levels, the location data

supersedes the global data.

Figure 44: Product Master Layout in SAP SCM

Like the material master, the product master contains both informational fieldsas well as control fields for the different business areas involved in supply chainplanning. A significant number of fields will be transferred from the SAP ECCmaterial master, however there will be many fields that do no originate in SAPECC . A majority of these fields are typically used in SNP since such functionalitydoes not exist in SAP ECC . Only those fields relevant for logistics planningare necessary. No cost fields will be transferred from SAP ECC , since thesewill be used for optimization, and will have a different relevance against othersupply chain costs.

Unlike the material master creation transaction in SAP ECC , SAP SCM onlyuses one transaction to handle several tasks. Users can create, change, or displayproduct data at both the global and location levels. Additionally, users cancreate profiles that can be used in the product master, to improve the speed ofmaintenance.

Administration tabThe attributes tab of the product master is location specific and all fieldscontained in this view are SAP SCM specific. The planner fields are maintain inconfiguration, and are used for selection filters for reporting and mass processingof master data and transaction data.



Figure 45: Administration Tab

Figure 46: SAP SCM Planner Configuration



Even though SAP ECC has both a production planner and MRP planner, SAPSCM may require users to break this down into further detail to support the newprocess of supply chain planning. Each product will be identified as to who therelevant individual is who is responsible for: Production Planning (PP/DS), SNPPlanning, Demand Planning, or Transportation Planning.

In addition to planner fields, SAP SCM keeps track of the user and date and time,who was responsible for the create or the change. Only changes to the locationspecific data will cause the �changed by�field to be updated. Changes to theglobal fields will also cause this field to be updated.

Attributes TabThe fields contained in the attributes view are global fields that apply to alllocations. Most of the items in this view can be maintain by the user, but severalof the fields are the result of the transfer through the CIF

Figure 47: Attributes of the SAP SCM Product Master

As a result of the integration with the CIF, a different product master number mayhave been generated in SAP SCM. Such a situation might exist if two plants havethe same part number, but are physically two very different part numbers. In theattributes tab of the product master, users will be able to see the External ProductNumber, and the associated business system group.

When the items are transferred to SAP SCM via the CIF, and entry is made intothe /SAPAPO/MATMAP table. This table is client dependent, but is not locationspecific. In addition the /SAPAPO/MATKEY table is updated with the globalproduct master values. The /SAPAPO/MATLOC table contains all the locationspecific values.



Additionally, each product master will contain the user that created the globaldata, and when it was last changed. Any changes to location specific fields willnot cause this to update. Only changes to the client level fields will cause such achange.

SAP ECC Field SAP ECC Loc SAP SCM CommentMaterial Group Basic Data 1 Material

GroupTrans. grp Sale:

general/plantTransp.Group

EAN/UPC Basic Data 1 EAN/UPC New SAP SCM 4.0Product Hierarchy Basic Data 1 Product

HierarchyNew SAP SCM 4.0

Gross Weight Basic Data 1 GrossWeight

Volume Basic Data 1 VolumeTotal Shelf Life Plant data / stor.

1Shelf life

As mentioned, certain fields will not be transferred from SAP ECC , and mustbe maintained in SAP SCM. These fields will support SAP SCM specificfunctionality.

Stacking FactorThe stacking factor indicates how often a pallet of this product can bestacked, and the manner in which the pallet should be stacked. You maintainthe minimum/maximum number of pallet stacks per transport unit viaAdvanced Planning and Optimization→ Supply Chain Planning→ SupplyNetwork Planning→ Environment→ Current settings→ Define profile forthe Transport Load Builder (TLB) .

SDP relevanceThis field enables you to exclude products from Supply Network Planning(SNP). Since, end products and main components are primarily relevant toSNP, for example, you can specify that subcomponents are not to be plannedin SNP. In this way, you can restrict the number of planned products.In Demand Planning (DP) this field is primarily of interest when generatingPPM�s for use in DP (sometimes referred to as DP-BOM�s). These PPM�sare used in DP to create demand for components. In general they only haveone level. DP -BOM�s are generated from existing SNP or PP/DS PPM�s. Ifa component product in the original PPM has this indicator set to a value notrelevant for DP , this product is then omitted from the DP-BOM. Howeverany subordinate products for which the indicator is not set are included.



Planning with Shelf LifeIf the indicator �Planning with shelf life� has been set for the product, thesystem takes both the maturity and the shelf life of product receipts, as wellas shelf life requirements, into consideration when planning this product.The value is transferred by means of the CIF interface, when the shelf lifefield in SAP ECC is populated. You can change the value.

Maturation TimeThe period required by a product after production before it can be used forfurther production or by a customer. The maturation time defined in theproduct master is transferred to all product receipts (such as productionand stock transfer orders) that are generated in SAP SCM. The systemconsiders the maturation time of a product receipt during pegging. A productrequirement can only make use of a product receipt if the requirementtime occurs outside the maturation time of the receipt. The value is nottransferred by means of the CIF interface. Enter the number of days forthe maturation time. The maturation time is part of the shelf life period.The maturation time of a product is only considered during planning if theindicator "Planning with shelf life" has been set in the product master.

Required Minimum Shelf LifeStandard value for required minimum shelf life. If the shelf life is taken intoconsideration when planning a product, a product requirement can requestthat this should be covered by a receipt which still has a shelf life of a certainperiod of time. This request can be defined explicitly for the requirement(for example, in a sales order transferred from SAP ECC ). Otherwise thevalue entered here will be adopted as the required minimum shelf life.A standard value of 4 days was defined for the required minimum shelf lifein the product master data. A production order creates a receipt on March3rd. The product shelf life is until March 20th. A planning requirement onMarch 8th, can now make use of this receipt (8th + 5 days, that is, the receiptshelf life must be until at least March 13th, that is, before March 20th). Aplanning requirement on March 16th cannot make use of this receipt (16th+ 5 days, that is, the receipt shelf life must be until at least March 21st,that is, after March 20th).



Required Maximum Shelf LifeStandard value for required maximum shelf life. If the shelf life is taken intoconsideration when planning a product, a product requirement can requestthat this should be covered by a receipt which does not exceed a certain shelflife. This request can be defined explicitly for the requirement (for example,in a sales order transferred to SAP ECC ). Otherwise the value entered herewill be adopted as the required maximum shelf life.In the product master data, the standard value for the required maximumshelf life was defined as 10 days. A production order creates a receipton March 3rd. The product shelf life is until March 20th. A planningrequirement on March 8th, cannot make use of this receipt (8th + 10 days,that is, the receipt shelf life must be up to at most March 18th, that is, beforeMarch 20th). A planning requirement on March 11th can make use of thisreceipt (11th + 10 days, that is, the receipt shelf life must be up to at mostMarch 21st, that is, after March 20th).

Units of MeasureThe unit of measure table is required in order to plan or inventory a product inSAP SCM or SAP ECC . In SAP ECC several units of measure may be establishedin order to support Sales and Distribution, Planning, Manufacturing execution,Purchase, and Costing. The UOM is a client independent table, that must beMaintained in both SAP ECC and SAP SCM.

Note: If there is a difference between the SAP ECC UOM table and theSAP SCM UOM, these will not be transported by the CIF. In order tosynchronize the two systems, companies can use the SAP Correction andTransport System (CTS) to move the configuration from one software tothe other. The underlying tables are identical in both systems.

Only those units of measure maintained in both system will transfer to the productmaster files. All ISO (International Standard Organization) units of measure aresupported by SAP ECC and SAP SCM. Any non-dimensional units (StandardCase, Shipping size) are user defined in the Unit of measure table the SAP ECCmaterial master and SAP SCM product master. The Unit of measure table is aglobal value relevant to all locations that the product is planned or stored.



Figure 48: Units of Measure in SAP SCM

SAPECCField SAP ECC Loc SAP SCM Comments

X(Denominator)

Uom Tab(secondary screen)

Denominator

AlternativeUom

Uom Tab(secondary screen)

Alternative Uom



SAPECCField SAP ECC Loc SAP SCM Comments

Y (Numerator) Uom Tab(secondary screen)

Numerator

Base Uom Uom Tab(secondary screen)

Base Uom

EAN/UPC Uom Tab(secondary screen)

EAN/UPC

Note: You can move global settings and parameters such as Units ofMeasure Definitions, Fiscal Variant Definitions, Factory Calendars,Currency Definitions and exchange rates from SAP ECC into SAPSCM via standard routines available in the Source System tab inAdministrator Workbench (SAP BW functionality). Use the SAP SCMmenu path: Advanced Planning and Optimization→ Demand Planning→ Environment→ Current Settings→ Administrator Workbench(RSA1)In the Data modeling sections choose the source systems tab. Youcan use this for most Source System definitions; in this case we wouldwill use the SAP ECC system. Select the Source System and right-mouseclick on Transfer Global settings. You can transfer select four types ofdata all at once or any one alone � there are no inter-dependencies orpre-dependencies among these. It is suggested that you take the option toupdate the tables rather than rebuild them, that way you will not lose anySAP SCM specific values that have been created.

ClassificationClassification is used for many different things in SAP ECC . Classificationis used for further definitions of materials, batch characteristics, and variantconfiguration (features and options).



Figure 49: Classification in SAP SCM

Note: In order to use classification in SAP SCM some customizing stepsmust occur. During the CIF transfer characteristics/class groups are nottransferred.

The Customizing for the relevant class types in SAP SCM and all affected SAPECC systems must be the same (for example, the indicator TCLO-MULTOBJSeveral Objects Allowed). Views also belong to Customizing. The transferredviews must be created separately in SAP SCM (for the respective class types). Ifthe view does not exist, the corresponding characteristics do not appear on thecharacteristic value assignment screen.

Originally, the system only transferred characteristics assigned to the class at thetime of generating (not activating) the integration model with the relevant view.This causes a complicated transfer of characteristics that were subsequently addedto a class or assigned to an SAP SCM -relevant organizational area. To make thiseasier, the function was changed to transfer all SAP SCM-relevant characteristicsthat are assigned to a class at the time of activating an integration model.

During the initial transfer of classes into the ECC Ibase classification system, classhierarchies are also selected and transferred.



Before you create classified master data and characteristic-dependent transactiondata in SAP SCM, you must determine which characteristic and classificationsystem you will use to plan the products in SAP SCM that are configurable or aregenerally described by characteristics. Choose from the following options:

� Planning based on the CDP characteristic and classification system

� Characteristics-Dependent Planning based on the CDP classes andcharacteristics system supports both make-to-order production andmake-to-stock production. The central functions are:

� Characteristics propagation that is defined in the production processmodel and allows a characteristics-dependent selection of process,components and resources.

� Block Planning� The consideration of characteristics during pegging The CDP

classification system also supports the characteristics-based productavailability check.

� Planning based on the SAP ECC characteristic and classification system

CDP based on the SAP ECC characteristics and classification system supportsthe make-to-order production (configured assembly) of mass products, as usedin the car industry. The configuration of products is displayed in the IntegratedProduct and Process Engineering (iPPE).

Characteristics-Based Forecasting (CBF) in Demand Planning (DP) also uses theSAP ECC characteristics and classification system.

In SAP SCM Customizing under Basis Settings→ Define Class System, define theclassification system you are using. Only one of the following can be active at anyone time: CDP or Ibase and ECC Characteristics.

Caution: A subsequent change to this setting in the production operationcan result in a loss of data. Before setting up the system, you musttherefore determine the processes you want to display, in order to choosethe classification system accordingly.

SNP 1The fields in the SNP 1 view are all SAP SCM specific fields and will only beused during and SNP optimization run. The Penalty cost fields can exist both atthe global level or the location-dependent level. Since these fields are specific toSNP planning functionality, they will be covering the SCM230, Supply NetworkPlanning class.



ATPUnlike SAP ECC , ATP will have its own product master tab. ATP in SAPSCM can provide similar functionality as SAP ECC but also provides additionalfunctionality as well. Based on this statement several fields will be SAP SCMspecific, while others will be transferred from SAP ECC .

Figure 50: ATP settings in SAP SCM Product Master

Note: ATP is different than most modules as it will only use certain ATPfields from the product master, if the fields are not transferred from theCIF during the availability check



ECC Field ECC Loc SAP SCM CommentsProduct Allocation Basic Data

1Prod.allocProc.

Value transfers, however,configuration has to exist inSAP SCM

RequirementsClass

MRP 3 Check Mode Requirements class isread from Strategy GroupConfiguration

Availability Check MRP 3 ATP Group Also exists on SDgeneral/plant

RLT(ReplenishmentLead Time)

MRP 3 CheckingHoriz.

See note below

Note: The CIF will populate the checking horizon with the replenishmentlead time field regardless of the procurement type. If the procurementtype is not set:

� E/X (in house production or both), the check horizon is the in-houseproduction time + goods receipt processing time.

� F (external procurement), the check horizons is the planned deliverytime + goods receipt processing time + procurement time (ECCconfiguration).

Below is a list of the SAP SCM specific fields:

Horizon for Re-Creating Receipts in Calendar DaysDefines a time period behind which receipt elements, created viaCapable-To-Promise (CTP) or via a conversion of the ATP tree structure(after a multilevel ATP check) in the order network of liveCache, are deletedby the system before a new ATP check takes place. The time period consistsof check date (today�s date) and calendar days that you specify in the horizonfor re-creating receipts.It is used when you have already performed CTP processing or a conversionof the ATP tree structure (after a multilevel ATP check) and change the salesorder in SAP ECC (SD), for example. If the requirements date (materialavailability date) is later than the end of the horizon, then the system attemptsto delete the receipt elements created in a previous check and to create themwithin a new ATP check.

Checking Horizon CalendarThe calendar for the checking horizon corresponds to a planning calendar(time stream) that you have created in Customizing for master data. Thecalendar for the checking horizon is used to calculate the end of the checkinghorizon. The checking horizon is calculated in work days.



SNP 2The majority of the data contained in the SNP 2 view is all SAP SCM specificdata. Since nothing like SNP exists in SAP ECC most of this data will reside inSAP SCM and relevant only for SAP SCM .

Figure 51: SNP Planning Features

SAPECCField SAP ECCLoc

SAP SCM Comments

PurchasingGroup

MRP 1 PurchasingGroup

Also can be maintained inECC Purchasing view

Forecast HorizonDefines a horizon in calendar days when the forecast is not considered as partof total demand. This is the default planning strategy, meaning if no strategyis selected, the system uses this strategy for the Heuristic calculations.Supply Network Planning does not include the forecast in total demandwithin the number of days you specify for this horizon. Beyond this horizon,the system calculates total demand as either the forecast or the sales orders(whichever is greater) plus the other demands (dependent and distributeddemand, planned and confirmed).



Pull Deployment HorizonSpecifies the number of days over which the system considers distributiondemand when calculating deployment. The horizon starts from today�s date.During the deployment run, the system tries to fulfill the total distributiondemand within this specified horizon. Distribution starts on the first daywhen distribution demands exist in the system and ends with the last day ofthe pull deployment horizon.

Period SplitDefines how planning data is disaggregated by time when you release thedemand plan from Demand Planning to Supply Network Planning. ProcedureTo define the period split, you choose one of the following options:

Blank The data is disaggregated and released to all of the workdaysin the specified horizon.�1� The data is disaggregated to all of the workdays in the specifiedhorizon, but released only for those days that lie in the present andfuture.�2� The data is disaggregated to the workdays in the present and future,and then released for the same days.

VMI Promotion Lead TimeLike the target days supply, which refers to total demand without VMIpromotions, and is specified in the lot size profile, this lead time refers to thenumber of days required to satisfy demand, specifically for VMI customerpromotions (see key figure VMI promotions ) prior to their due date.The VMI promotional lead time is only used at customer locations that arepart of a VMI scenario. All other demand key figures, such as sales orders,are processed according to the target days supply. The VMI promotions keyfigure is processed according to the VMI promotional lead time. Specifythe number of workdays allocated as lead time to cover a VMI customer�sproduct promotion.

Forecast Horizon in the Past (New SCM 4.0)This indicator refers to the Forecast Horizon . If you do not specify a valuefor the forecast horizon or enter the value 0, and set this indicator, theconsumption logic of the forecast horizon also applies for planning periodssituated in the past (before today�s date).



SNP Production HorizonHorizon, in which Supply Network Planning (SNP) does not plan production.This means that SNP does not create any planned orders in the Production(planned) key figure but shifts production to the first day after the end of thishorizon. The horizon starts on the system date (or the date specified in thePlanning start date field in the planning book). Within this horizon, SNPdeletes all the unfixed SNP planned orders from previous planning runs.You divide the areas of responsibility for planning between the SNPproduction horizon and the PP/DS horizon: You plan production with SNPoutside of the SNP production horizon; planning is bucket-oriented andstretches over the medium-term horizon. In the short-term horizon, thatis the PP/DS horizon, you plan production in more detail using automaticProduction Planning and Detailed Scheduling (PP/DS). You can manuallycreate PP/DS orders outside of the PP/DS horizon. Therefore, the SNPproduction horizon is only relevant for SNP and does not cause constraintson order generation at PP/DS level. If the SNP production horizon is shorterthan the PP/DS horizon, the planning areas overlap. This requires goodreconciliation of planning tasks.

Extend SNP Production Horizon (New SCM 4.0)Time period over which Supply Network Planning (SNP) andCapable-to-Match (CTM) do not plan production; that is, do not createany planned orders. SNP and CTM move production to the first day afterthis horizon. This horizon is an extension of the SNP Production Horizon. However, in contrast to the SNP production horizon, you can manuallycreate SNP planned orders in this extended horizon in interactive SupplyNetwork Planning.

SNP Stock Transfer HorizonIn contrast to the SNP Production Horizon, this horizon prevents stocktransfers from being planned too last minute, leaving insufficient time for theorganization to react. Enter the number of days, during which the systemdoes not plan any stock transfers. This horizon starts on the system date (oron the date specified in the Planning start date field). The system does notgenerate any planned distribution receipts within this horizon but postponesthem until the first day after the SNP stock transfer horizon. SNP alsodeletes all unfixed stock transfers within this horizon. In contrast to theSNP production horizon , this horizon prevents the system from planningstock transfers at too short notice, leaving the organization with insufficienttime to react.

Push Deployment HorizonDuring deployment calculations, the system tries to distribute stock andreceipts (specified in the ATD receipts category group of the locationmaster) that exist within this horizon. This horizon restricts the futureavailable-to-deploy quantity. Receipts that exist after the end of this horizonare not secure enough to be confirmed using deployment.



Deployment Safety Stock Push HorizonThis horizon is taken into account when you use the Push distributionmethod S (push distribution that takes the safety stock horizon) into account.The system then only confirms planned issues (that safety stock at the sourcelocation will have to be used to cover), when the difference between therequirement date and deploy date is smaller than the safety stock horizon.Safety stock at the source location ensures that incoming sales orders atthis location are safe.

Fix Production ReceiptsSNP Heuristic If you set this indicator, all SNP planned orders from previousplanning runs that are within the SNP Production Horizon , are consideredas fixed during the heuristic run in Supply Network Planning (SNP) and,therefore, are not deleted.SNP Optimizer If you set this indicator, all SNP planned orders fromprevious planning runs that are outside of the planning horizon specified forbackground processing, are considered as fixed during the SNP optimizationrun and, therefore, are not deleted. If you do not set this indicator, all SNPplanned orders from previous planning runs that fall within the planningbuckets profile specified for the planning book are deleted during theSNP optimization run. In this instance, the SNP production horizon is anexception: If you have specified in the SNP optimizer profile that you wantthe optimizer to take the SNP production horizon into account, no SNPplanned orders are deleted in this horizon.

Fix Stock TransportsSNP Heuristic If you set this indicator, all SNP stock transfers from previousplanning runs that are within the SNP stock transfer horizon are consideredas fixed during the heuristic run in Supply Network Planning (SNP) and,therefore, are not deleted.SNP Optimizer If you set this indicator, all SNP stock transfers fromprevious planning runs that are outside of the planning horizon specified forbackground processing, are considered as fixed during the SNP optimizationrun and, therefore, are not deleted. If you do not set this indicator, all SNPstock transfers from previous planning runs that fall within the planningbuckets profile specified for the planning book are deleted during the SNPoptimization run. In this instance, the SNP stock transfer horizon is anexception: If you have specified in the SNP optimizer profile that you wantthe optimizer to take the SNP stock transfer horizon into account, no SNPstock transfers are deleted in this horizon.

Fair Share RuleIf demand exceeds supply, the system can use fair share logic to calculatedeployment based on the available to deploy (ATD) quantity. These fairshare rules allow for alternative methods of allocating a restricted supplyof product to the demand sources.



Push DistributionIn Supply Network Planning push rules are used to calculate deploymentwhen the available-to-deploy (ATD) quantity can cover the demand.

PriorityIn Production Planning and Detailed Scheduling (PP/DS), the system canuse the priority of the product to determine the priority of an order. You canuse priority of orders to help you make planning decisions or to carry outsequencing using detailed scheduling heuristics. The value 1 means highestpriority, the value 255 lowest priority. If no value is given or the value is 0,this also means lowest priority (this corresponds to the value 255). You canonly maintain the priority on the SNP 2 tab. The priority field on the PP/DStab is for display purposes only. Priorities can be time dependent!

VMI Purchasing GroupIndicates the identifier for the buyer or group of buyers responsible forpurchasing tasks for the VMI product.

Customer ProductSpecifies the material number which the customer uses for this product. Thisinformation is used in vendor-managed inventory (VMI). The customersubmits inventory data and POS data via EDI through an IDOC. The systemuses this field to find the match between the customer�s material number, asspecified in the IDOC, and the SAP SCM product number.

SNP Checking Horizon (New SCM 4.0)The SNP checking horizon is used in deployment to calculate the quantityavailable for distribution to the demand locations (available-to-deploy (ATD)quantity). It limits the quantity that is available within the push deploymenthorizon. If you specify an SNP checking horizon, deployment calculates theATD quantity for a period within the SNP checking horizon by adding theATD receipts for the current period and the past periods and subtractingall ATD issues within the SNP checking horizon. If you do not specify anSNP checking horizon, or the period under observation lies outside theSNP checking horizon, deployment adds the ATD receipts of the currentperiod and the past periods and subtracts the ATD issues for these periods.Deployment takes only ATD receipts and issues within the push deploymenthorizon into account.

Demand Selection Horizon (New SCM 4.0)Determines the selection period for demands that Capable-to-Match Planning(CTM) uses, independently of the product. If, for example, you planproducts with different lead times, you can determine the selection periodfor the demands of one product, in a different way to the selection periodfor the demands of another product. The value that you enter here in daysrefers to the current date.



Horizon for Creating Orders (New SCM 4.0)Period before demand date (in days), in which Capable-to-Match Planning(CTM) can create planned orders to fulfill a demand. Use You can entervalues between 1 - 999 . The start date of all orders created by CTM planningmust lie within the specified time period (demand date minus number ofcalendar days). Remember that the system counts non-workdays as days.The period is valid for all orders created for one demand, independent of theBOM level. Existing receipts or stocks, however, do not have to lie in thisperiod. This includes receipts that CTM planning creates because of themanufacture of co-products or lot size specifications, and does not consumeimmediately.

Time-Based Priority (New SCM 4.0)Priority and rank that are valid for a particular time period. These values areonly used by Capable-to-Match planning (CTM). Use CTM planning canderive the priority of a demand from the time- dependent priority and the rankof the location product. A prerequisite is that you have specified in the CTMprofile on tab page Demands that demands are to be prioritized according tocriterion MPRIO and/or criterion MRANK. To maintain values, click on thesymbol for time-dependent priority. You will see a separate dialog box. Ifyou have maintained values, this is shown by a tick before the symbol.

DemandSimilar to SAP ECC , when planning against demand, users need to distinguishedagainst which types of demand will be planned and which types will be ignored.In addition, planners must decide which items will be replenished from inventoryor directly from some method of procurement (make/buy).



Figure 52: Requirements Planning Strategies in SAP SCM

The majority of the fields in the requirements strategy view will be transferredfrom SAP ECC . Only several of the strategies that are used in SAP ECC areavailable in SAP SCM. This is due in part that in SAP SCM you can create aconstraint based plan versus and unconstrained plan in SAP ECC . In SAP ECCthe philosophy was to manage the demand, and smooth it as necessary base oncapacity limitations, and then run an unconstrained MPS/MRP run. However inSAP SCM, when executing a production planning run or optimization run, thesystem can smooth the supply plan without �Fixing�receipts, allows plannersmore flexibility.

Note: If the material master fields are not maintained in SAP ECC , butan MRP group has been set with valid requirements strategy settings, theywill be transferred from the MRP group configuration.



SAP ECCField

SAPECCLoc

SAP SCM Comments

StrategyGroup

MRP 3 ProposedStrategy

Only the following SAP ECCstrategies are supported:

� 10 Net rqmts Plng� 20 Make-to-Order� 30 Production by Lot Size� 40 Plng w/ Final Assembly� 50 Plng w/o Final Assembly� 60 Plng w/ Plng Material� 70 Sub Assembly Plng

Individ-ual/Collec-tive

MRP 3 DependentRequire-ments

Note: the setting for individualsettings only has been removed.This was not relevant since MTSdependent Requirements could notbe converted to MTO requirements.

ConsumptionMode

MRP 3 ConsumptionMode

Note: the consumption mode 4 -Forwards then Backwards is notsupported in SAP SCM due to itslack of business application.

BackwardsConsumptionPeriod

MRP 3 Bwd.consump per.

ForwardConsumptionPeriod

MRP 3 Fwd.con-sump.per

Mixed MRPindicator 1

MRP 3 AssemblyPlanning

Currently only sub assemblyplanning with Final Assembly issupported.



Figure 53: Planning Strategies in SAP SCM

As mentioned, the SAP SCM strategies are slightly different from SAP ECCstrategies. SAP SCM currently only supports 7 different strategies, as delivered.Two that are not highlighted in the figure above are SAP ECC Strategy 20(Make-to-Order), which is a blank value in the strategy group, and SAP ECCStrategy 30 (Production by lots) which is SAP SCM strategy 10, however the ECCsales order will send additional planning information through the CIF.

Caution: All make to order strategies only work with PP/DS. SAP SCMstrategies 30, 40, and blank (MTO) do not work in SNP.

Consumption GroupIf you want to work with descriptive characteristics in applications otherthen Demand Planning, you specify these characteristics in a consumptiongroup. In the consumption group you assign fields from the ATP fieldcatalog to characteristics in Demand Planning. Consumption groups areused in conjunction with descriptive characteristics to enable the forecastto be consumed by sales orders and related orders, at a more detailed levelthan the location product. For instance you may want to create forecasts forindividual customers and to then consume this forecast when the customerplaces a sales order. You use consumption groups to do this gives yousignificantly more flexibility when planning orders. For instance you canassign priorities to customers , so that your most important customer getspreference if all orders cannot be satisfied in a particular period. Theaccepted orders can then be subtracted from the forecast at customer level.



Alert Relevance of Product (Product Alerts)In this field, you specify whether: The system determines direct alerts for arequirement or a receipt of a product or , the product is relevant to networkalerts. If a product is relevant to network alerts, the system evaluates thedirect alerts that it determines for this product for receipts or requirements atthe subordinate levels of the pegging structure as well.You can hide alerts for less critical components and thus: Increase theclarity and transparency of the network alerts, and Improve performance. Ifyou choose the option Do Not Determine Any Alerts, the system will notdetermine any direct alerts for the product. The product is thus also notrelevant with regard to network alerts.

Figure 54: Pegging Controls in SAP SCM

In regards to handling the pegging relationships, SAP SCM will have more controlthan SAP ECC . In SAP ECC users had a field called rescheduling horizon locatedin the MRP group that could control how a fixed receipt can be used in planning.This value is not relevant in SAP SCM. There fore the earliness and lateness fieldswill control the planning results relative to how users control pegging.

Since SAP SCM is a pure planning system, users will have more opportunities tocontrol the relationships between supply and demand (pegging). None of thesefields will be transferred from SAP ECC :



Concurrent Pegging Indicator (New SCM 4.0)This indicator is relevant to dynamic pegging for orders with continuousrequirements or receipts. Continuous requirements or receipts of variousorders can overlap. If you set the indicator, the system uses concurrentpegging . In concurrent pegging the system splits the quantities, whichconsume or make available two overlapping continuous requirements orreceipts in the overlapping phase, into partial quantities. A partial quantity isthe quantity that a requirement or a receipt requires or makes available ina time interval with a user-specific duration. The system distributes thesepartial quantities; that is, it creates dynamic pegging relationships for thesepartial quantities:

� In the overlapping phase, when there are two overlapping requirements,the system distributes the receipt quantity of a discrete receipt, forexample, to the overlapping requirements, by assigning a partialquantity alternately to the requirements.

� Accordingly, two overlapping receipts in the overlapping phase supplya discrete requirement alternately with partial quantities.

Time Interval (New SCM 4.0)This field is only relevant if you have set the concurrent pegging indicator.The system splits the overlapping phase of overlapping requirements andreceipts into time intervals of this duration, and splits the requirements orreceipt quantity, required or made available in the overlapping phase, intocorresponding partial quantities.

Pegging StrategyUsing the pegging strategy you can determine in which time sequence thesystem should cover requirements for the product with dynamic peggingand in which time sequence the system should use the product receipts inthe pegging interval to cover a requirement. Thus, the pegging strategycontrols, which requirement the system should cover first , which receiptsthe system should use first

Avoid AlertsIf you set this indicator, the system attempts to create the peggingrelationships between requirements and receipts if possible without quantityalerts or date alerts. First, the system links receipts and requirements thatare compatible on a time and quantity basis, then the remaining receiptsand requirements in a second step.



Maximum Earliness of a ReceiptFor dynamic pegging the system can only use a receipt to cover a requirementif the availability deadline is not earlier than the specified time frame beforethe requirements date. The system cannot assign even earlier receipts to therequirement. You can therefore exclude receipts that are too early for arequirement and thus avoid shelf life or storage problems.You specify the time frame in the format HHH.HHH:MM (hours:minutes).Example: 1.000:10 means 1000 hours and 10 minutes, 20:20 means 20hours and 20 minutes.If you do not specify a value, the system uses the value 100,000:00. Thesystem can only assign a receipt to a requirement if the availability deadlinelies at most 100000 hours before the requirements deadline.

Maximum Lateness of a ReceiptFor dynamic pegging the system can only use a receipt to cover a requirementif the availability deadline is not later than the specified time frame afterthe requirements deadline. The system cannot assign even later receiptsto the requirement. You can therefore exclude receipts which are too latefor a requirement and thus avoid problems with missing materials or withthe customer.You specify the time frame in the format HHH.HHH:MM (hours:minutes).Example: 1.000:10 means 1000 hours and 10 minutes, 20:20 means 20hours and 20 minutes.If you do not specify a value, the system used the value 0. The system cannottherefore assign any late receipts to a requirement.

Deactivate Dynamic Pegging (New SCM 4.0)If you do not set this indicator, dynamic pegging is active for the locationproduct. That is to say, the system can create dynamic pegging relationshipsbetween requirement elements and stock or receipt elements. If you set thisindicator, the system does not carry out dynamic pegging for the locationproduct - that is to say, there are no dynamic pegging relationships.

Alert thresholds for earliness/latenessThe system creates a deadline alert for a fixed or a dynamic peggingrelationship if the earliness/lateness exceeds the alert threshold; that is, ifthe availability deadline is earlier/later than the specified time frame beforethe requirements deadline.



Concurrent Pegging (New SCM 4.0)This indicator is relevant to dynamic pegging for orders with continuousrequirements or receipts. Continuous requirements or receipts of variousorders can overlap. If you set the indicator, the system uses concurrentpegging . In concurrent pegging the system splits the quantities, whichconsume or make available two overlapping continuous requirements orreceipts in the overlapping phase, into partial quantities. A partial quantity isthe quantity that a requirement or a receipt requires or makes available ina time interval with a user-specific duration. The system distributes thesepartial quantities; that is, it creates dynamic pegging relationships for thesepartial quantities:

� In the overlapping phase, when there are two overlapping requirements,the system distributes the receipt quantity of a discrete receipt, forexample, to the overlapping requirements by assigning a partialquantity alternately to the requirements.

� Accordingly, two overlapping receipts in the overlapping phase supplya discrete requirement alternately with partial quantities.

Minus Production Tolerance (New SCM 4.0)Indicates the maximum permitted shortage of the individual producttolerance in the requirement element as a percentage. If characteristic meansthat a requirement quantity is subdivided into individual quantities, you candefine here the maximum percentage by which the individual partial quantityis not reached.

Plus Production Tolerance (New SCM 4.0)Indicates the maximum permitted surplus of the individual product tolerancein the requirement element as a percentage. If a characteristic means thata requirement quantity is subdivided into individual quantities, you candefine the maximum percentage by which the individual partial quantitycan be exceeded.



Under Delivery TolerancesPercentage value that specifies by how much the requirement quantity of arequirements element is permitted to fall below.Example: If it is permissible for the requirement quantity to be 10 percentless, you enter 10. Therefore, when there is a requirement quantity of 100pieces, the maximum tolerated under-delivery is 10 pieces, which means, aminimum of 90 pieces should be delivered.If you have not set the Use total stocks or Use total receipt indicators, thedelivery tolerances are relevant to the generation of quantity alerts forrequirements. If the total quantity of the stock and receipt elements that areassigned to a requirements element is outside the tolerance area, the systemcreates a shortage alert or a surplus alert for a requirement. Since the systemcan only ever assign one total receipt quantity (that covers the requirement)at most to a requirements element in dynamic pegging, the over-deliverytolerance is not relevant here.If you have set the Use total stocks or Use total receipt indicators, the systemmust assign the complete quantity of a stock or a receipt element to arequirements element. The over-delivery tolerance influences the dynamicpegging for these elements that are only allowed to have one peggingrelationship: The system may also assign such a stock or receipt element toa requirements element if an over-delivery is thereby generated within theover-delivery tolerance. The under-delivery tolerance here, as above, meansonly one thing for the generation of shortage alerts.



Over Delivery TolerancesPercentage value that specifies by how much the requirement quantity of arequirements element is permitted to be exceeded.Example: If it is permissible for the requirement quantity to be exceeded by10 percent, you enter 10. Therefore, when there is a requirement quantity of100 pieces, the maximum over-delivery tolerated is 10 pieces, which means,the maximum quantity delivered should be 110 pieces.If you have not set the Use total stocks or Use total receipt indicators, thedelivery tolerances are relevant to the generation of quantity alerts forrequirements. If the total quantity of the stock and receipt elements that areassigned to a requirements element is outside the tolerance area, the systemcreates a shortage alert or a surplus alert for a requirement. Since the systemcan only ever assign one total receipt quantity (that covers the requirement)at most to a requirements element in dynamic pegging, the over-deliverytolerance is not relevant here.If you have not set the Use total stocks or Use total receipt indicators, thedelivery tolerances are relevant to the generation of quantity alerts forrequirements. If the total quantity of the stock and receipt elements that areassigned to a requirements element is outside the tolerance area, the systemcreates a shortage alert or a surplus alert for a requirement. Since the systemcan only ever assign one total receipt quantity (that covers the requirement)at most to a requirements element in dynamic pegging, the over-deliverytolerance is not relevant here.If you have set the Use total stocks or Use total receipt indicators, the systemmust assign the complete quantity of a stock or a receipt element to arequirements element. The over-delivery tolerance influences the dynamicpegging for these elements that are only allowed to have one peggingrelationship: The system may also assign such a stock or receipt element toa requirements element if an over-delivery is thereby generated within theover-delivery tolerance. The under-delivery tolerance here, as above, meansonly one thing for the generation of shortage alerts.

Use entire ReceiptIf you set this indicator, the system may only assign a receipt element forthe product to one requirement element during dynamic pegging. Therequirement element must thus completely consume the receipt element



Use Total StockDefines that all stock is to be used in full, that is, the full amount of a stockelement must be pegged to a requirement element; no partial quantities arepermitted. A requirement may be covered by several stock elements, butthese stock elements must be used in full. This helps to ensure that eachbatch is fully consumed.Example: You have a requirement of 180 pieces. You have two existingstock elements of 100 pieces each. The system only uses one of these stockelements and creates a new receipt element for the remaining 80 pieces.

Alert Relevance of Product (Product Alerts)In this field, you specify whether: The system determines direct alerts for arequirement or a receipt of a product or , the product is relevant to networkalerts. If a product is relevant to network alerts, the system evaluates thedirect alerts that it determines for this product for receipts or requirements atthe subordinate levels of the pegging structure as well.You can hide alerts for less critical components and thus: Increase theclarity and transparency of the network alerts, and Improve performance. Ifyou choose the option Do Not Determine Any Alerts, the system will notdetermine any direct alerts for the product. The product is thus also notrelevant with regard to network alerts.

Figure 55: Available Stocks

Available Stock indicators (New SCM 4.0)If you set these indicators, the various stocks types count as available inProduction Planning and Detailed Scheduling and in Capable-To-Match. Thesystem takes these stocks into account in the net requirements calculationand in dynamic pegging.

Lot SizeLot sizing methodology is very important to planners. The concept of the lotsize is to control the receipt quantity. Whether it is exact to the requirementquantity, batch size, pallet size, truck size, or being rounded up to a shifts worthof production.



Lot sizing is handled differently in SAP SCM. In SAP ECC users defined the lotsize method, which was based on configuration in the IMG. Once implementationswere live, it is often a lengthy process to change or create new lot size techniquesdue to limited access to configuration. In SAP SCM all of the lot sizing techniquesare master data that can be changed in the material master.

Caution: The lot size values are typically changed most often. ANYchanges in the SAP ECC material master will cause all referenced fieldsfrom SAP ECC to be updated. To prevent APO fields from being updatedusers can use a lot size profile to write protect the SAP SCM data frombeing over-written by an SAP ECC material master update.

Figure 56: Lot Size Elements in SAP SCM (1)


SAP SCM Comments

Lot Size MRP 1 Lot-for-Lot Determined by the lot sizeindicator (E - Lot for Lot) inconfiguration of the Lot sizetechnique

Lot Lot Size Always




SAP SCM Comments

Last Lot Exact Configu-ration

Lot size Exact Determined whether theindicator Last lot exact inconfiguration of the Lot sizetechnique is set.

Lot Size MRP 1 Fixed Lot Size Determined by the lot sizeindicator (F - Fixed Lot size)in configuration of the Lotsize technique

Fixed Lot Size MRP 1 Fx QuantityLot Size MRP 1 By Period Determined by the lot

size procedure (P - Periodlot size procedure) in theconfiguration of the lot sizetechnique.

Lot Size MRP 1 Period Type Determined by the Lot Sizeindicator in the configurationof the Lot Size. (T- Day, K -Planning Calendar)

Lot Size MRP 1 Number ofperiods

Determined by the number ofdays in the configuration ofthe lot size procedure

PlanningCalendar

MRP 2 PlanningCalendar

Note: Calendars are defineddifferently in APO. Calendarmust be configured first inAPO then the value willtransfer from ECC .

MRP Type MRP 1 Reorder point Determined by the MRP typeconfiguration. MRP typeprocedure (B- Reorder pointplanning)

MRP Type MRP 1 Reord.PtProc. If defined in ECC , willdefault to 1 - Reorder stockfrom location productmaster

Safety Stock MRP 2 Safety Stock Also will set the SSk Methodin SAP SCM to SB - Safetystock from locaiton productmaster *

Reorder point MRP 1 Reorder point




SAP SCM Comments

Service Level MRP 2 Service LevelMaximumStock Level

MRP 1 MaximumStocklevel

Minimum LotSize

MRP 1 Minimum LotSize

Maximum LotSize

MRP 1 Maximum Lotsize

Assembly Scrap MRP 1 Assembly ScrapRounding Value MRP 1 Rounding ValueRoundingProfile

MRP 1 Roundingprofile

Note: this is a configurationvalue and must be configuredin SAP SCM beforetransferring the value.

Safety Time/act.Coverage

MRP 2 Safety dayssupply

Also will set the SSk Methodin SAP SCM to SZ - Safetydays Supply from locationproduct master *

AvailabilityDateperiod Factor

Note: * If both safety days supply and safety stock are used, the safetystock method in AP will be set to SM - Max of Safety stock and SafetyDays supply from location product master.



Figure 57: Lot Size Configuration in SAP ECC

As mentioned earlier, the lot size data in SAP SCM is master data. When transferthe material master to SAP SCM the CIF will analyze the configuration of the lotsize technique an set the appropriate �master data�fields in the SAP SCM productmaster. Additionally, the MRP type configuration may be read as well in orderto set the reorder point relevant fields.

Figure 58: Factors to Determine Quantities and Dates

Several control fields that work in conjunction with the lot size procedure willalso transfer from SAP ECC .




SAP APO Comments

MaximumStock Level

MRP 1 MaximumStocklevel

Minimum LotSize

MRP 1 Minimum LotSize

Maximum LotSize

MRP 1 Maximum Lotsize

Assembly Scrap MRP 1 Assembly Scrap Calculated value see notebelow

Rounding Value MRP 1 Rounding ValueRoundingProfile

MRP 1 Roundingprofile

Note: this is a configurationvalue and must be configuredin APO before transferringthe value.

Safety Time/act.Coverage

MRP 2 Safety dayssupply

Assembly scrap is a calculated value in SAP SCM. The basis for calculating scrapis different in the SAP ECC System and in SAP SCM. In the SAP ECC System,the scrap is indicated as a percentage of the yield, in SAP SCM it is a percentageof the total quantity.

Example: 100 pieces are needed (yield). With a scrap of 10%, in ECC the totalquantity is 110. If 111,111 units must be produced in SAP SCM. 10% scrap ofthis is 11,111. The yield is 100. We consider the SAP SCM calculation to bethe correct one. We would like to highlight this using a few extreme examples:Suppose the scrap of a production process is twice as large as the yield. Whichscrap percentage must we select? In the SAP SCM, we have a scrap of 66.67%,thus 33.33% are the yield. In the SAP ECC System, we need a scrap percentage of200%. A percentage of more than 100 generally appears to be incorrect to us.

Second example: We only produce scrap. In this case the scrap percentage in SAPECC would have to be infinitely large. In SAP SCM , it is 100%

Note: The SAP SCM scrap factor can be calculated from theSAP ECC scrap factor as follows: Assemblyscrap_SAP SCM =100*Assemblyscrap_SAP R3/(100+Assemblyscrap_SAP R3) This is theconversion that is carried out when the material master is transferredfrom the SAP ECC System. For this reason, the scrap percentages of theproduct master are different in SAP SCM and in the SAP ECC System.For more information about the scrap calculation see SAP Note 390850



Caution: Assembly scrap in the SAP SCM product master is calculatedfrom the SAP ECC assembly scrap using the formula above. Thisconversion can cause rounding-off problems. The result of the scrapcalculation in SAP SCM will then no longer correspond exactly to theresult in the SAP ECC system. These rounding problems are inevitable.At best, you could attempt to keep more decimal places identical in SAPSCM and in the SAP ECC System by calculating with bigger numberfields. However, the last decimal places will still be different. Also, anincrease in accuracy like this will slow down the performance since youwould not only have to calculate with longer number fields but also, aconversion between the normal number fields and the bigger numberfields would have to be carried out occasionally.

The rounding profile is another unique field, in that it is configuration in SAPECC . Similarly the rounding profile in SAP SCM is a configuration value as well.However, in SAP SCM the profile is defined differently, therefore the settings cannot be transferred through the CIF. Even though the settings are different, if thesame profile has been configured in SAP SCM, then the rounding profile value(configuration key) will transfer to the SAP SCM product master field.

Although the majority of the fields transfer from SAP ECC , there are severalfields that are specific to SAP SCM to support new functionality. Here are a few:

Reorder Point Days SupplyUsed in Production Planning and Detailed Scheduling (PP/DS). Specifythe reorder days� supply if you have defined reorder point procedure 2 forthe location product.

Reorder point ProcedureHere you specify the reorder point procedure you wish to use to plan theproduct.If you want to plan using a reorder point procedure in ProductionPlanning and Detailed Scheduling (PP/DS), you must use theheuristic for planning standard lots SAP_PP_002 (algorithm/SAPAPO/HEU_PLAN_STANDARDLOT). For this heuristic, you can onlyuse reorder point procedure 1 and reorder point procedure 2, but not reorderpoint procedures 3 to 6.



Safety Stock MethodThere are various safety stock calculation methods:

Standard methodsStandard Methods You use these methods to define the amount ofsafety stock and the safety days� supply in a direct and simple manner.Both of these parameters can be defined as either bucket-dependent orbucket-independent. Bucket-independent parameters can be directlydefined in the location product master (the Lot sizes tab page).Bucket-dependent parameters are defined in Interactive Planning inSupply Network Planning.

Extended methodsThe system uses these methods to calculate bucket-dependent safetystock based on a forecast error and the service level specified. There arefour different methods available depending on the lot-sizing procedureand service level chosen: Reorder point method, Reorder cycle method,Alpha service level, Beta service level.

Target Stock MethodAn additional method to increase the planned receipt quantity by analyzing arolling time period and considering planned and actual demand.

Target Days supplyThe number days for which the current stock and the planned receipts of amaterial should last to cover the demand that exists at the time of planning

Period FactorFactor used by the system to calculate the availability date of a receiptelement within a time period (bucket). The system determines the exactavailability date of the receipt element within a bucket by adding a timeinterval (that it gets by multiplying the period factor with the bucket length)to the start time of the bucket. You can enter a factor between 0 and 1 where0 is the start of the bucket, 0.5 the middle, and 1 the end of the bucket.When calculating the availability date, the system takes into considerationall weekdays, meaning that it does not take into consideration any days thathave been defined as non-workdays in the calendars. In Supply NetworkPlanning (heuristic), the system automatically sets the availability timewithin daily buckets to 12:00.

PP/DSThe Parameters contained in the PP/DS view will affect only the ProductionPlanning portion of SAP SCM. Instead of using a program like MRP, users will beable to user Heuristics, which are special planning algorithms, that will allow theplanning run to use different logic to plan materials differently.



Figure 59: Detailed Scheduling parameters in SAP SCM


SAP SCM Comments

ShowProduction Unit

WorkSchedul-ing

Production Unit

SchedulingMargin Key

MRP2 Openinghorizon

Opening period value that isconfigured in the schedulingmargin key

Planning TimeFence

MRP 1 PP/DS fixinghorizon



PP Plng ProcedureDefines for each planning-relevant event that can occur for a locationproduct, which action is executed by Production Planning and DetailedScheduling (PP/DS) in SAP SCM if this event occurs. Some Options are

� 1 - Manual with Check� 2 - Manual without Check� 3 - Cover Dependent Requirements Immediately� 4 - Planning in the Planning Run� 5 - Multi level ATP Check� I - IDES: automatic planning immediately� U - GSC: automatic planning immediately

Note: As of Release 3.1 these values are configurable based oncertain changes to master data and/or transactional data.

HeuristicsAlgorithms with mathematical formulas and control parameters used toprogram how the planning run will occur in relation to existing demand.

Plan explosionDetermines which master data is used for creation on in house productiondetails.

BOM Explosion DateDefines which date the system is to use for the explosion of the PVS/ BOMfor an assembly and its components for planning in the DI System (from DI4.6C2). For use in the Discrete Industry solution.

Adjustment HorizonThis horizon is relevant to sales order oriented planning. In sales orderoriented planning you only convert procurement proposals (planned ordersand purchase requisitions) into manufacturing orders or purchase orders iftheses procurement proposals are used to cover sales orders. Using specificProduction Planning and Detailed Scheduling heuristics, you delete plannedindependent requirements for which there are no sales orders, and adjustthe purchase requisitions and planned orders used to cover these plannedindependent requirements accordingly.



Requirements Ascertain. HorizonThis horizon is relevant to sales order oriented planning. In sales orderoriented planning you only convert procurement proposals (planned ordersand purchase requisitions) into manufacturing orders or purchase orders ifthese procurement proposals are used to cover sales orders. Using a specificProduction Planning and Detailed Scheduling heuristic (standard heuristicSAP_PP_014 ) you can determine the planned independent requirementsfor which there are no sales orders.You determine these planned independent requirements for procurementproposals that start in the requirements ascertainment period. You can definethe requirements ascertainment period using the requirements ascertainmenthorizon. You can use the results to ask your customers to issue sales orders.

PP/DS HorizonYou specify a location product-specific PP/DS horizon here. If you do notspecify a location product-specific PP/DS horizon, the system uses the PP/DShorizon from the planning version. You define this in Model and VersionManagement. For planning with PP/DS heuristics within the PP/DS horizonyou can use the PP/DS planning time fence to fix the (short term) planning.

Conversion RuleSpecifies which checks the system executes for the conversion of plannedorders and purchase requisitions to production orders or purchase orders.

Procurement TabProcurement will relate to those items that are externally procured. APO mayhandle this differently than ECC since vendors are now considers planninglocations in SAP SCM . During planning SAP SCM can consider transportationlanes, purchasing info records, PPMs, in regards to planning externally procureditems.



Figure 60: Procurement Parameters in SAP SCM


SAP SCM Comments

ProcurementType

MRP 2 Procurementtype

PlannedDelivery Time

MRP 2 PlannedDelivery time

Note: The planned delivery time is lot size independent. If theprocurement time of the items is variable to the lot size then considerusing alternative methods in SAP SCM to properly plan the procurement.

The planned delivery time is independent of a vendor, therefore may no longer berequired, but may require users to use purchasing info records or create vendorlocations to manage the timing of the procurement as they would there ownproduction locations (Boms, Routings, and Work centers)

The other fields in procurement view are designed for SNP.

External Cost Function (cost function)Used by the Optimizer to calculate the cost of procuring, producing, ortransporting varying quantities of products defined in intervals via theMaintenance function. This will allow users to model a step function to showhow procurement costs may change based on lot size.



Procurement CostThe penalty cost for procurement based on the base unit of measure.

Product Dependent Storage CostsUsed in Supply Network Planning and Production Planning and DetailedScheduling to calculate how much it costs to store the product in theassociated storage resource (warehouse) per the base unit of measure andper day.

Safety Stock Penalty CostsUse in Supply Network Planning and Deployment, to determining thepenalty costs incurred when the safety stock is violated during planning.

GR/GIThe goods receipt and goods issue parameters will be used in scheduling betweenlevels of the bill of material or between locations. Certain parameters will only beused in heuristics calculations and optimizations decisions.

Figure 61: Goods Receipt/Issue Parameters in SAP SCM

SAPECCField SAP ECC Loc SAP SCM CommentsGR processingtime

MRP 2 Goods recpttime

Calculated field in SAPSCM appears in Days

Loading Group Sales:general/plant

Loading group



The goods receipt can now be maintained in decimal places, however, this fieldin linked to the ECC material master so it will be over-written if the materialmaster in ECC is updated. During the transfer from SAP ECC the GR processingtime is multiplied by 24 hours.

Note: The time by day in PP/DS may be 8 hours due to resourceavailability, but in SNP it will seen as 24 hours. Therefore and GRprocessing time of 2 days would be 2 days in SNP but in PP/DS (assumingresource is working only 8 hours) the system would consider this 6 days(8 hours/day). In order to allow PP/DS to realize a 24 hour day, a handlingresource must be created with 24 hour availability.

A majority of the fields in GR/GI tab will be SAP SCM specific. Here are someexamples:

Goods Issue TimeThe time between issuing the product from storage and transporting it. Thistime is used as handling time or time for quality control, and is added to thetransport duration (Supply Network Planning and PP/DS) of a product.

Synchronize Posting GISpecifies whether the goods issue of this component is to be postedsynchronously or asynchronously in the SAP ECC System. Used with theDiscrete Industry Solution in regards to backflushing

Handling Capacity Consumption Goods ReceiptUsed by the Heuristic and Optimizer to calculate how much handlingresource capacity is consumed by the product for a particular plan.Example: If the handling resource can handle 1000 liters per day, andyou define the handling capacity consumption as 10 liters per piece, themaximum rate is 100 pieces per day.

Handling Capacity Consumption Goods IssueUsed by the Heuristic and Optimizer to calculate how much handlingresource capacity is consumed by the product for a particular plan.Example: If the handling resource can handle 1000 liters per day, andyou define the handling capacity consumption as 10 liters per piece, themaximum rate is 100 pieces per day.

Storage Consumption per Base Unit of MeasureUsed by the Heuristic and Optimizer to calculate how much storage capacityis consumed by the product for a particular plan.Example: If the storage resource capacity is 1000 cubic meters, and youdefine the storage consumption as 5 cubic meters per piece, that means youcan store a maximum of 200 pieces.



Extra Fields in SAP SCMDuring the course of an implementation companies may find themselves, lackingcertain fields to perform functionality. Several fields can be configured in theIMG to show up on the Extras view (location specific) of the product masteras well as the attributes view (global).

Figure 62: User Defined Fields in the SAP SCM Product Master

The fields on the Extras view page are fields that must be released in Customizingbefore they become available. In Customizing, choose Advanced Planner andOptimizer (APO)→Master Data→ Maintain Freely-Definable Attributes. In thisIMG activity, you release those fields in the product or location master in whichproduct or location attributes can be maintained. These fields are not available bydefault as they are for additional information that is not required as a general rule.However, these fields may be utilized in a user defined PP/DS heuristic.

SAP has already appended several tables with existing fields for which users canfind a use. The fields for global product master data can be found on the tabAttributes view. Attribute fields for location-specific product master data can befound on the tab Extras , which is only available if at least one of these fields isreleased.



The following steps must be followed:

1. For the global product master views, use one or more of the following fields:ATT01, ATT02, ATT03, ATT04, ATT05.

2. Use the table name /SAPAPO/MATKEY

1. For the location product master view use one or more of the following fields:AT101, AT102, AT103, AT104, AT105

2. Use Table name /SAPAPO/MATLOC



Activate Freely-Definable Attributes

1. APO Menu Path SPRO→ Reference IMG→ SAP APO IMG→ SAPAdvance Planner and Optimizer (SAP APO)→ Master Data→ MaintainFreely-Definable Attributes

2. Choose New Entries

3. Add the following data

Field Name DataField AT101Table /SAPAPO/MATLOCActivate SelectText Product Family

4. Save Values

5. Create transport request if necessary

6. Review the Extras view of your Product master for T-ZAP-100



Exercise 5: Materials and product mastersin SAP SCM

Exercise ObjectivesAfter completing this exercise, you will be able to:� Review material masters in SAP ECC and transfer them to SAP SCM

Business ExampleA material master has been created for a finished product (3 Liter ZAP LaundryDetergent) that you will sell to your customers. This material exists in both plant3100 for manufacturing and plant 90## for distribution.

Material masters for the raw materials and semi finished products have also beencreated. However these are only required in the manufacturing facility (plant3100).

Certain material master fields will be transferred and mapped from the SAP ECCsystem to SAP SCM. These can then be displayed in the SAP SCM system.

Materials:

ZAP-1##: 3 Liter Laundry Detergent (Finished good)- Both locations

LBTL-1##: Labeled Bottle (Semi-finished) - Plant 3100 only

T-FD1##: Scented Detergent (Semi-finished) - Plant 3100 only

Cap-1##: Cap for ZAP-1## (Raw Material) - Plant 3100 only

BTL-1##: 3 Liter Detergent Bottle (Raw Material) - Plant 3100 only

Task 1: Display Material Master in SAP ECCDisplay the finished product material master for the 3 Liter ZAP LaundryDetergent that you will sell to your customers. Note the planning relevant fieldsthat are transferred to SAP SCM.

1. Display the material master in SAP ECC for the finished product materialmaster ZAP-1## in plant 3100. This product will be planned in SAP SCMand you are responsible.




2. What is the MRP Type and what significance does it have?

3. What entries are in the following fields:

Field DataMRP ControllerLot SizeRounding Value

4. How long is the GR Processing time?

5. Ensure the appropriate planning fields are populated in theMRP3 Tab:

Field Name ValueStrategy GroupConsumption ModeBwd. Consumption Per.Fwd. Consumption Per.




Task 2: Integration of Material Masters goods withSAP SCMWith the material masters that existin SAP ECC we must transfer them to SAPSCM in order to begin building our supply chain within SAP SCM.

1. Create and generate an Integration model to transfer your all new materialsfor which your new planner is responsible (in SAP SCM) in plants 3100 and90##. Create the variantMAT-## in case you need to update this integrationmodel later.. Do not exit integration model until next step is complete.

Field Data

Model Name Group-##


APO Application Materials

2. Create a variant of your integration model so it can be reused at later timeto pick up new materails that are SAP SCM relevent. Name your variantMAT-## with a description ofMaterials Group ##

Task 3: Transfer Material to SAP SCMActivate your integration model to begin the initial data transfer and setup theincremental data transfer.

1. Activate your integration model :

Field Data

Model Name Group-##



Task 4: Confirm Data Transfer to SAP SCMDisplay the product master in SAP SCM for the 3 Liter ZAP Laundry Detergentthat you will sell to your customers. Note the planning relevant fields that weretransferred to SAP SCM.

1. Display the product master in SAP SCM for the finished product materialmaster ZAP-1## in plant 3100. This product will be planned in SAP SCMand you are responsible.




2. What view (tab) are the following fields contained on and what value hasbeen populated for each.

Field Tab ValueProduction PlannerProposed StrategyConsumption ModeBwd Consumption Per.Period Type(Lot Size)Number of PeriodsRounding Value

Opening PeriodProcurement Type

GR Processing Time



Solution 5: Materials and product mastersin SAP SCMTask 1: Display Material Master in SAP ECCDisplay the finished product material master for the 3 Liter ZAP LaundryDetergent that you will sell to your customers. Note the planning relevant fieldsthat are transferred to SAP SCM.

1. Display the material master in SAP ECC for the finished product materialmaster ZAP-1## in plant 3100. This product will be planned in SAP SCMand you are responsible.

a) Menu path:Logistics→ Production→ Master Data→ MaterialMaster→ Material→ Display→ Display Current

b) Enter the following data

Field Name: DataMaterial ZAP-1##

c) Choose the following views:

MRP 1MRP 2MRP 3MRP 4

Select Organizational levels to continue

d) Enter in the following data:

Field NamePlant 3100


2. What is the MRP Type and what significance does it have?

Answer: MRP1 Tab - MRP type is X0.This MRP type will not be planned in the SAP ECC system. However theBOM will still be exploded to ensure planning completeness. It also servesas a good selection criteria or the materials transferred to SAP SCM.




3. What entries are in the following fields:

Field DataMRP Controller 2##Lot Size 3DRounding Value 24

Answer:

4. How long is the GR Processing time?

Answer: MRP2 Tab - GR Processing time is 2 Days

5. Ensure the appropriate planning fields are populated in theMRP3 Tab:

Field Name ValueStrategy Group 40Consumption Mode 2 - Bwds/FwdsBwd. Consumption Per. 15Fwd. Consumption Per. 15

Answer:

Task 2: Integration of Material Masters goods withSAP SCMWith the material masters that existin SAP ECC we must transfer them to SAPSCM in order to begin building our supply chain within SAP SCM.

1. Create and generate an Integration model to transfer your all new materialsfor which your new planner is responsible (in SAP SCM) in plants 3100 and90##. Create the variantMAT-## in case you need to update this integrationmodel later.. Do not exit integration model until next step is complete.




Field Data

Model Name Group-##



a) Menu Path: Logistics→ Central Functions→ Supply Chain PlanningInterface→ Core Interface Advanced Planning and Optimizer→Integration Model→ Generate→ Create

b) Enter the data in the above table in the header fields.

c) Select theMaterials indicator on the left side of the screen.

d) In the section marked �General Selection Options : for Materials�Enterthe following:

Field Name Data:Plant 3100 and 90##

MRP Controller 2##

MRP Type X0

Note: For the plant entries, select Multiple entries to enterthe two individual entries.

e) Select Execute

f) Select Save to Generate the integration model

Note: Only when the message �Integration model Group - ##generated for target system APOCLNT8XX and applicationMaterials� appears have you successfully generated andintegration model:

g) Select Back .

Caution: Do not exit the integration Model selection screen




2. Create a variant of your integration model so it can be reused at later timeto pick up new materails that are SAP SCM relevent. Name your variantMAT-## with a description ofMaterials Group ##

a) Select SAVE.

b) Enter Name your variantMAT-## with a description ofMaterialsGroup ##

c) Select SAVE.

Task 3: Transfer Material to SAP SCMActivate your integration model to begin the initial data transfer and setup theincremental data transfer.

1. Activate your integration model :

Field Data

Model Name Group-##



a) From the SAP ECC menu, Logistics→ Central Functions→ SupplyChain Planning Interface→ Core Interface Advanced Planning andOptimizer→ Integration Model→ Activate

Your integration model information should default into the fields sincethat was the last one you used. If it doesn�t make sure that the fields arecorrect with the information from the previous step and execute.

Double click on the date/time line or click it and click thebutton on the tool bar. A green check should appear

in front of it. To begin the initial data transfer, click thebutton on the tool bar.

b) If presented with a pop up window to review messages answer no.




Task 4: Confirm Data Transfer to SAP SCMDisplay the product master in SAP SCM for the 3 Liter ZAP Laundry Detergentthat you will sell to your customers. Note the planning relevant fields that weretransferred to SAP SCM.

1. Display the product master in SAP SCM for the finished product materialmaster ZAP-1## in plant 3100. This product will be planned in SAP SCMand you are responsible.

a) Menu path:Advanced Planning and Optimization→ Master Data→Product→ Product


Field Name: DataMaterial ZAP-1##

Location 3100

c) Select :

2. What view (tab) are the following fields contained on and what value hasbeen populated for each.

Field Tab ValueProduction Planner Administr. NoneProposed Strategy Demand 20Consumption Mode Demand 2Bwd Consumption Per. Demand 15Period Type(Lot Size) Lot Size DNumber of Periods Lot Size 3Rounding Value Lot Size - Quantity and

Date determination24

Opening Period PP/DS 10Procurement Type Procurement XGR Processing Time GR/GI 2

Answer:



Lesson Summary

You should now be able to:� Explain when and how items will be transfer to SAP SCM� Transfer several of your materials to SAP SCM from SAP ECC� Navigate and identify SAP SCM master data and SAP ECC master data.� Explain and perform basic steps in using user/additional data fields in SAP

SCM.


SCM215 Lesson: SAP SCM Product Master Data

Lesson: SAP SCM Product Master Data

Lesson OverviewIn this lesson we will become familiar how fields are updated in SAP SCM. Thiswill include using mass processing, master data profiles. Additionally studentswill discuss consequences of integrating with the SAP ECC material master.


� Navigate and identify SAP SCM master data and SAP ECC master data.� Create Profiles to support the maintenance of SAP SCM specific data.� Use mass processing techniques to update product masters with new profiles� Explain and perform basic steps in using user/additional data fields in SAP

SCM.

Business ExampleYou must complete the SAP SCM master data to enable SAP SCM planning. Tomake data maintenance more efficient you need to explore additional techniquesincluding mass maintenance, profiles, and central master data maintenance forboth SAP SCM and SAP ECC systems.

Product Master LayoutSimilar to it�s counter part in SAP ECC , the product master in SAP SCM hasdata on two levels. Global data, which is relevant at any planning location, andlocation specific data, which is only applicable to a specific location. Global data

tabs are identify by the header symbol. Location data tables are identified bysymbol. Some tabs however, like the SNP 1 and ATP data tabs, have fields

that are on both the global and location level, and are i symbol. In situationswhere data is present at both levels, the location data supersedes the global data.



Figure 63: Product Master Layout in SAP SCM

Like the material master, the product master contains both informational fieldsas well as control fields for the different business areas involved in supply chainplanning. A significant number of fields will be transferred from the SAP ECCmaterial master, however there will be many fields that do no originate in ECC . Amajority of these fields are typically used in SNP since such functionality does notexist in SAP ECC . Only those fields relevant for logistics planning are necessary.No cost fields will be transferred from SAP ECC , since these will be used foroptimization, and will have a different relevance against other supply chain costs.

Unlike the material master creation transaction in SAP ECC , SAP SCM onlyuses one transaction to handle several tasks. Users can create, change, or displayproduct data at both the global and location levels. Additionally, users cancreate profiles that can be used in the product master, to improve the speed ofmaintenance.

Profiles in the SAP SCM Product MasterAs a result of the review of the product master, many of the fields will be SAPSCM specific. In some cases the additional functionality will also conflict withsettings in SAP ECC . Therefore, a solution is need to apply many field valuesat once as well as protect fields from being over-written in SAP SCM when itreceives and update from SAP ECC . In order to accomplish this profiles can becreated in SAP SCM and applied to the product master in several views



Figure 64: Profile overview for Product Master



Several different profiles can be created as master data. The profiles can then beapplied individually in the product master or via mass process. There are fivedifferent profiles that can be created and applied:

1. Lot Size Profile (Lot Size View)

The Lot Size Profile will allow the users to fill in what lot size procedureis needed and which parameters are necessary to influence the quantities ofthe lot size.

Note: Safety Stock Values are not included here. The safety stockfunctionality is different in SAP SCM from that of SAP ECC . Anychanges to the SAP ECC master data will delete the SAP SCMsettings in the product master.

2. Demand Profile (Demand View)

The Demand Profile will control what planning strategies and consumptionvalues as well as handling the dependent requirements pegging features.

Note: The Alert Filter settings are not included in the DemandProfile

3. SNP Demand Profile (SNP 2 view)

The SNP 2 Demand Profile controls how planned independent requirementsand stock transfers are handled in SNP

4. SNP Supply Profile (SNP 2 view)

The SNP 2 Supply Profile controls the planning horizon for SNP and whensupply elements can be created in relation to SNP stock transfers .

5. Deployment Profile (SNP 2 view)

The Deployment Profile controls the settings for the product during adeployment runs .

Note: The Other Data and CTM Settings must be maintainedmanually or through mass processing

As a result of using profiles the field values can now only be maintained via theprofile. If a change is made to the profile then all products using the profile will beupdated. Upon deleting a profile from a material master, the profile values nowact as default values and can be changed. Any fields whose origin is in SAPECC can now be updated via the CIF.



Mass Processing the SAP SCM Product MasterAfter the transfer of the material masters from SAP ECC to SAP SCM, manyfields will need to be updated, or throughout out the course of business manyproducts may have planning attributes that change. In order to deal with thisprocess mass processing is available for the product master.

Figure 65: Product Master Mass Maintenance Functionality

The tool for the mass maintenance of SAP SCM master data is basically thesame tool with which the mass maintenance of master data can also be carriedout in SAP ECC . In addition to technical enhancements and improvements, theSAP SCM version of the tool features a redesigned user interface and greateruser-friendliness.

In the mass maintenance of master data, you always proceed according to thefollowing schema: You first choose an object type (such as a location) in theselection area. Using the selection criteria, you then choose the component(header data, for example) containing the attribute to be changed (the locationtype, for example). In the next step, you specify the attribute you wish tomaintain. The selection made here determines the attribute to which the changemethods are to be applied. The result of the selection appears in a data table inthe manipulation area on the right-hand side of the screen. In the process, theattributes for each selected component are listed on a separate tab page. Prior to



the mass maintenance operation, the data table shows you the values read by thedatabase. After the first change, you see the changed values that are subsequentlyaffected by all further changes.

The screen is broken down into two areas: Selection of Data in Selection Area,were you choose the data that is to be maintained in the selection area on theleft-hand side of the screen. Selection is carried out according to object type,component, and attribute. When the selection process has been completed, youcan hide this area. Maintenance of Data in Manipulation Area, In upper part ofthe manipulation area on the right-hand side of the screen, you specify the changemethods by which the values of the attributes are to be changed. Below this, theattributes are displayed with their associated values in the data table.

In mass maintenance, you can change data in two different ways: SystematicChanges and Tabular Maintenance. Systematic Changes In the case of systematicchanges, you enter a change method with which the change in an attribute isspecified. This change is carried out for all objects. You can choose whetherthe changes are to be carried out immediately or in the background. It is alsopossible to save systematic changes as variants. Tabular Maintenance In tabularmaintenance, you can change individual objects with different values. Once youhave activated tabular maintenance, it is not then possible to make changes in thebackground. Neither is it possible to save a tabular change as a variant.

Restricting Field Updates During Incremental DataTransferOnce the initial data is transferred from SAP ECC into SAP APO, some or most ofthe data fields will (or should) maintained exclusively in SAP SCM. This is a listof all the fields in the SAP ECC / SAP SCM communications structure. Duringthe initial load of the data from SAP ECC , the fields are populated with either theSAP ECC data or a default value set by the CIF process. A number of the fields inSAP SCM have no corresponding field in SAP ECC and these are set to null orspaces during the initial transfer. Whenever a product master maintenance isperformed in SAP ECC , the entire record is transmitted to SAP SCM ; thereis no net change transfer form this data. For all subsequent updates (changes tomaster data in SAP ECC ), you will need to block updates from SAP ECC whichwill overwrite any changes you make in SAP SCM). With the exception of thefields listed below, all fields transferred from SAP ECC into SAP SCM need to beevaluated and a system of record identified for the data.

� Method to be executed while transferring object (METHOD)� External product number (EXT_MATNR)� External Location (EXT_LOCNO)� Location type (LOCTYPE)



APOCF005 - User exit to block updates to selected fields with the Productlocation record in SAP SCM. The �include� that blocks the update in SAP SCMis ZXCIFUSERU08.

Note: This is an example of the coding for the APOCF005 user exit. Thisparticular code was implemented at a customer for APO1.1. It does notinclude all the fields listed above.

***INCLUDE ZXCIFUSERU08.

* Called from function exit_/sapapo/saplcif_prod_001.

* This user exit is used in Inbound Product integration model

* To control which fields on the product master are updated

* Value of space means field is not updated, value of ’X’ means

* Field is updated. By default all fields have an ‘X’

* To prevent a field at material level from being updated, find

* The field name in table it_matkey then clear the corresponding

* Flag for the field’s name in it_matkeyx

* To prevent a field at material/location level from being updated,

* Find the field name in it_matloc then clear the corresponding

* Flag for the field’s name in it_matlocx

* Flag structure for all fields at material/location level

LOOP AT IT_MATLOCX.

* Do not update following list of fields:

* Demand Tab

CLEAR: IT_MATLOCX-RQMKY, " Demand profile

IT_MATLOCX-RQMTX, " Demand profile text

IT_MATLOCX-STRA1, " Proposed strategy

IT_MATLOCX-VRMOD, " Consumption mode

IT_MATLOCX-VINT1, " Backward consumption period

IT_MATLOCX-VINT2. " Forward consumption period

* Lot Size tab

CLEAR: IT_MATLOCX-BSTMI, " Minimum lot size

IT_MATLOCX-BSTMA, " Maximum lot size

IT_MATLOCX-RDPRF, " Rounding profile

IT_MATLOCX-BSTRF, " Rounding value

IT_MATLOCX-SVTTY, " Target days supply

IT_MATLOCX-SAFTY. " Safety stock

* SNP2 tab

* SNP2 Demand

CLEAR: IT_MATLOCX-DPREX, " Demand profile

IT_MATLOCX-DPRTX, " Demand profile text

IT_MATLOCX-D1HOR, " Demand horizon 1

IT_MATLOCX-D2HOR, " Demand horizon 2

IT_MATLOCX-FCSTH, " Forecast horizon

IT_MATLOCX-PULLH, " Pull horizon

IT_MATLOCX-PRMTY, " VMI promo lead time

* SNP2 Supply



IT_MATLOCX-SPREX, " Supply profile

IT_MATLOCX-S1HOR, " Supply horizon 1

IT_MATLOCX-S2HOR, " Supply horizon 2

IT_MATLOCX-PRODH, " Production horizon

IT_MATLOCX-SHIPH, " Stock transfer horizon

IT_MATLOCX-PUSHH, " Push horizon

* SNP2 Deployment

IT_MATLOCX-DPLEX, " Deployment profile

IT_MATLOCX-DPLTX, " Deployment profile text

IT_MATLOCX-DPLFS, " Fair share rule

IT_MATLOCX-DPLPU, " Push mode

* SNP2 Other data

IT_MATLOCX-KDMATID, " Customer material number

IT_MATLOCX-VEGRP, " VMI purchasing group

IT_MATLOCX-EKGRP. " Purchasing group

* GR/GI tab

CLEAR: IT_MATLOCX-PLIFZ, " Planned delay time

IT_MATLOCX-GRPRT, " Goods receipt processing time

IT_MATLOCX-GIPRT, " Goods issue processing time

IT_MATLOCX-BESKZ, " Procurement type

IT_MATLOCX-CONHAP, " Handling capacity consumption

IT_MATLOCX-HUNIT, " Handling capacity consumption unit

IT_MATLOCX-CONINP, " Storage consumption

IT_MATLOCX-IUNIT, " Storage consumption unit

IT_MATLOCX-SCOST. " Product storage costs

* ATP tab

CLEAR: IT_MATLOCX-CHKHOR, " Checking horizon

IT_MATLOCX-MTVFP. " ATP group

MODIFY IT_MATLOCX.

ENDLOOP.

Other customizing options are:

� SAP ECC function module: CIF_MATERIAL_PRODUCT_MAP� SAP ECC customer exit: EXIT_SAPLCMAT_001� SAP APO function module: /SAPAPO/CIF_PROD_INBOUND� SAP APO customer exit: EXIT_/SAPAPO/SAPLCIF_PROD_001

(APOCF005)� SAP APO function module: /SAPAPO/DM_PRODUCTS_MAINTAIN� SAP APO customer exit: EXIT_SAPMMDUSER_005 (APOMD005)



Exercise 6: Products in SAP SCM

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create SAP SCM Profiles� Using Mass processing to update product masters with profile data� Identify user/additional fields in material master

Business ExampleYou must complete the SAP SCM master data to fully enable planning in SAPSCM . To make maintenance more efficient you need to explore additionaltechniques including mass maintenance, profiles, and central master datamaintenance for both SAP SCM and SAP ECC systems.

Task 1: Profiles in the SAP SCM Product MasterAs a result of the Transfer of data from SAP ECC via the CIF, the product masterstill has many fields that need to be enabled to utilize the SAP SCM planningfunctionality.

1. Create a Lot size profile (LOT-## with a decription GR## Reorder point)that will control the order quantities for some of your products. Nowthat PP/DS is running to the hour we will do minimum runs in four hourincrements, but we want to make it in 1,000 pc increments, and we see 2percent scrap during production.

2. Create a SNP Supply profile (SNPsup-## with a description Gr## SNPSupply ) that will control the pegging relationships for some of yourproducts.

Task 2: Mass Processing the Product MasterNow that you have developed several profiles you will assign them via massprocessing.

1. Update all of your materials that you have brought over from SAP ECCwith your SNP profile and your planner ID 0##. Only Produt BTL-1## willbe updated with your new lot size profile. Use the criteria Product * -1## and Location 3100 and 90##. Create a variant called Prod-##, GR##product/profile so this can be used again.




Task 3: Review Mass processing changes.

1. Review your product BTL-1## at location 3100.

2. What Lot size procedure has been assigned to BTL-1##

3. Back in SAP ECC change your material master for BTL-1## in plant 3100,so the lot size procedure is FX (Fixed lot Size) with fixed lot size of 100,000,and add a safety stock of 100 pcs.

4. Which if any of the fields transferred from SAP ECC ?



Solution 6: Products in SAP SCMTask 1: Profiles in the SAP SCM Product MasterAs a result of the Transfer of data from SAP ECC via the CIF, the product masterstill has many fields that need to be enabled to utilize the SAP SCM planningfunctionality.

1. Create a Lot size profile (LOT-## with a decription GR## Reorder point)that will control the order quantities for some of your products. Nowthat PP/DS is running to the hour we will do minimum runs in four hourincrements, but we want to make it in 1,000 pc increments, and we see 2percent scrap during production.

a) SAP SCM menu path:Advanced Planning and Optimization→ MasterData→ Product

b) Using the radio buttons select Lot size Profile, enter LOT-## with a

decription GR## Reorder point , and select Create

c) Choose the Procedure tab and enter the following data:

Procedure Tab

Field Name: Data:Description GR## Reorder point

Procedure Reorder point

Reorder point procedure 2 - Reorder supply fromlocation product master

Reorder Days supply 3

Determination of qties and dates

Field Name: Data:Minimum Lot-size 100,000

Maximum Lot size 500,000

d) Select Save




2. Create a SNP Supply profile (SNPsup-## with a description Gr## SNPSupply ) that will control the pegging relationships for some of yourproducts.

a) SAP SCM menu path:Advanced Planning and Optimization→ MasterData→ Production

b) Using the radio buttons select SNP: Supply profile, enter SNPsup-##,

and select Create

c) Choose the Pegging tab and enter the following data:

Field Name: Data:Description Gr## SNP Supply

SNP Production Hor. 90

SNP stk Trnsf Hor. 0

Push deploy. horizon 14

Depl.SafetyStkPushHFix ProductionFix Transports

d) Select Save

Task 2: Mass Processing the Product MasterNow that you have developed several profiles you will assign them via massprocessing.

1. Update all of your materials that you have brought over from SAP ECCwith your SNP profile and your planner ID 0##. Only Produt BTL-1## willbe updated with your new lot size profile. Use the criteria Product * -1## and Location 3100 and 90##. Create a variant called Prod-##, GR##product/profile so this can be used again.

a) SAP SCM Menu PathAdvanced Planning and Optimization→ MasterData→ Mass Maintenance→

b) Choose object type Product and press ENTER

c) Under the selection criteria section choose the drop down options toobtain a field listing

d) In the field marked Component, use the drop down and enter H*

(header), and in the Attribute enter P* (product), selectApply filter




e) Select Header data - Product and select Transfer Selected lines

f) In the Values field enter * - 1##.

g) In the field marked Component, enter another line use the drop downand enter L* (header), and in the Attribute enter L* (product), select

Apply filter

h) Select Location Dependent - Location and select Transfer Selected lines

i) In the Values field enter 3100 and 90## using the Multiple Selectionindicator.

j) Under the section Component and attributes to be maintained, choosethe drop down options to obtain a field listing

k) In the field marked Component, enter L* (Location dependent), select

Apply filter

l) While holding down the control key select the following Attributes:

� LotSize/DaySS� Prod. Planner� Supply Profile

m) Select Transfer Selected lines

n) Select Save as variant enter Prod-##, with description GR##product/profiles and select Save

o) Select Execute selection

p) A pop up window will appear �Processing Mode�Select Change withDisplay

q) Remove the selection windows, by selecting Hide selector

r) Choose the Location dependent tab

s) With all of your product location combinations selected Change allthe fields, except the LotSize/DaySS, to Set fixed value and enterproduction Planner 2##, and the SNPSUP-## profile created in theprevious task.

t) Select Make changes

u) Select only the product/location BTL-1##/3100.

v) Set the Supply Profile and Prod. Planner to no change, and set theLotSize/DaySS to Set Fixed value and enter your profile LOT-##.




w) Select Make changes

x) Select all items in the list.

y) Select Save

Task 3: Review Mass processing changes.

1. Review your product BTL-1## at location 3100.

a) SAP SCM menu PathAdvanced Planning and Optimization→ MasterData→ Product

2. What Lot size procedure has been assigned to BTL-1##

Answer: Reorder point, using a reorder days supply calculation of 3 days,with a minimum of 100,000 and a maximum of 500,000.

3. Back in SAP ECC change your material master for BTL-1## in plant 3100,so the lot size procedure is FX (Fixed lot Size) with fixed lot size of 100,000,and add a safety stock of 100 pcs.

a) SAP ECC menu path: Logistics→ Production→ Master Data→Material Master→ Material→ Change→ Immediately

b) Select views MRP 1 and MRP 2, at plant 3100

c) In the MRP 1 view change the lot size to FX, and enter a fixed lotsize of 100,000 and press ENTER

d) Enter a safety stock on 100 pcs and select Save

4. Which if any of the fields transferred from SAP ECC ?

Answer: Only the safety stock field transferred due to the lot size profileprotecting the lot size procedure.



Lesson Summary

You should now be able to:� Navigate and identify SAP SCM master data and SAP ECC master data.� Create Profiles to support the maintenance of SAP SCM specific data.� Use mass processing techniques to update product masters with new profiles� Explain and perform basic steps in using user/additional data fields in SAP

SCM.


Unit Summary SCM215

Unit SummaryYou should now be able to:� Explain when and how items will be transfer to SAP SCM� Transfer several of your materials to SAP SCM from SAP ECC� Navigate and identify SAP SCM master data and SAP ECC master data.� Explain and perform basic steps in using user/additional data fields in SAP

SCM.� Navigate and identify SAP SCM master data and SAP ECC master data.� Create Profiles to support the maintenance of SAP SCM specific data.� Use mass processing techniques to update product masters with new profiles� Explain and perform basic steps in using user/additional data fields in SAP

SCM.


Unit 4External Procurement Relationships

Unit OverviewIn the day-to-day activities of any business it will be necessary to purchase ?materials from outside vendors. This unit will discuss the different types ofexternal procurement and how they will be affected and modeled in SAP SCM.


� Explain what a purchasing information record is� Explain if and why vendors are needed in conjunction with purchasing

information records.� Create a simple purchasing information record.� Transfer information records to SAP SCM and explain the integration

between the new purchasing relationship so created.� Explain what a scheduling agreement is.� Create a simple scheduling agreement in SAP ECC .� Transfer a scheduling agreement to the SAP SCM System via the CIF and

explain the procurement relationship created.

Unit ContentsLesson: Standard Purchasing Info Records.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .196

Exercise 7: Purchasing Info Records .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .201Lesson: Scheduling Agreements ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .207

Procedure: Scheduling Agreements Maintenance .. . . . . . . . . . . . . . . . . . .211Exercise 8: Scheduling Agreements ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .215


Unit 4: External Procurement Relationships SCM215

Lesson: Standard Purchasing Info Records

Lesson OverviewIn this lesson we introduce purchasing info records and define them and their use.We discuss the advantage of transferring info records via the CIF from the SAPECC system. We will complete this lesson by creating an info record manuallyin the SAP ECC system, creating and activating an integration model to transferit, and viewing the results in the SAP SCM system.


� Explain what a purchasing information record is� Explain if and why vendors are needed in conjunction with purchasing


between the new purchasing relationship so created.

Business ExampleAssume that in your company the raw materials for manufacturing of the ZAP-1##detergent product are externally procured from three vendors using differentprocurement means. The cap for your 100 oz. detergent bottle is procured fromtwo vendors 0000100153 and 0000100154. The procurement of CAP-1##from vendor 0000100154, will be done through traditional purchasing methods(purchase orders). You need to model the appropriate steps so that plant 3100 canbegin to receive caps via purchase orders immediately.

Purchasing Info Records in SAP SCMPurchasing activities can happen in many different ways based on how the productwill be paid for, who will own the stock, and how often partners buy from oneanother.

� Purchase orders (Standard)� Consignment Purchase order (Vendor stock)� Scheduling Agreements (Blanket Purchase Orders)� Sub-Contracting (Purchase Order/Scheduler Agreement)

Each one of the purchasing options may represent a different master data object.SAP SCM my require some of this information in order to properly plan yoursupply chain replenishment.


SCM215 Lesson: Standard Purchasing Info Records

The SAP ECC Purchasing Info Record serves as a source of information forPurchasing. The purchasing info record contains information on a specificmaterial and the vendor supplying that material.

The SAP ECC Purchasing info record contains the following data:

� Data such as prices and conditions that you can store for the relevantpurchasing organization or plant

� The number of the last purchase order� Tolerance limits for over-deliveries and under-deliveries� The planned delivery time (lead time required by the vendor to deliver the

material)� Vendor evaluation data� An indicator showing whether the vendor counts as the regular vendor for

the material� The vendor sub-range to which the material belongs� The availability period during which the vendor can supply the material� The info record contains quotation and ordering data.� The data in the info record (such as price) is also used as default data for

purchase orders. For instance, you can store the current and future quotationconditions (discounts, fixed costs etc.) in the info record. You can alsomaintain the vendor�s conditions directly in the info record.

A purchasing info record can be created at either the plant or purchasingorganization organizational levels.

A purchasing info record allows buyers to quickly determine:

� Which materials have been previously offered or supplied by a specificvendor

� Which vendors have offered or supplied a specific material

A purchasing info record can be created:

� Manually for a plant or a purchasing organization.� Automatically if you set the Info update indicator when maintaining a

quotation, a purchase order, or an outline agreement. Ordering data will thenbe recorded/updated automatically in an info record

Purchasing info records in the ECC system can be transferred to the SAP SCMsystem as external procurement relationships. The conditions are transferred fromthe purchasing info record to the external procurement relationship in SAP SCM.Purchasing info records without conditions are created as external procurementrelationships without costs. The type of info record (standard, consignment, orsubcontracting) defines the form of procurement.



Figure 66: External Procurement Process In SAP SCM System

The info record links the transportation lane with information from the OLTPsystem. The transportation lane defines the relationship between the source(vendor) location and the destination (plant) location. The external procurementrelationship extends the information of the transportation lane by establishinga link to the info record, contract, or scheduling agreement that exists in theOLTP system for that specific product, source location, and destination locationcombination. If a transpiration lane currently exists at the time of transfer the inforecord will be linked to it. If a transpiration lane does not exist at the time oftransfer the system will automatically create one for the specific locations sincethe info record contains all the data needed to create it.

Caution: If you transfer info records that were created at the purchasingorganization level (not plant specific), the system will create atransportation lane from the specified vendor location to every plantassigned to that purchasing organization that exists in the SAP SCMsystem.

Consignment Info Records in SAP SCMIn consignment processing, the vendor provides materials and stores them on yourpremises. The vendor remains the legal owner of the material until you withdrawmaterials from the consignment inventory. Only then does the vendor requirepayment and it is usually calculated periodically.



Features of consignment stock include:

� The consignment stock is managed under the same number as your ownstock. Therefore, consignment stock can be transferred to the available stock.

� Consignment stocks are not valuated. When the material is withdrawn it isvaluated at the price of the respective vendor.

� Consignment stocks of the same material from different vendors can bemanaged independently from one another and at the price of the individualvendors.

� Using consignment info records, you can make use of other conditionfunctions used in Purchasing, such as discounts and price quantity scales.

� You can determine period-specific consignment prices.� You can specify the consignment price in any unit of measure. The

conversion factor is stored in the info record.� You can define consignment prices in foreign currency. The currency

in which the order is placed with the vendor applies for consignmentwithdrawals.

A consignment material can be allocated to one of three stock types:

� Unrestricted-use stock� Quality inspection stock� Blocked stock

You can make transfer postings between these three stock types. However,withdrawals can only be posted from unrestricted stock.

When purchasing info records are transferred from SAP ECC to SAP SCM viathe CIF the purchasing info record category in SAP ECC determines the form ofprocurement in SAP SCM (standard, subcontracting, or consignment). All otherrules for purchasing info records apply to the consignment info record.



Exercise 7: Purchasing Info Records

Exercise ObjectivesAfter completing this exercise, you will be able to:� Explain what a purchasing info record is.� Display a simple purchasing info record� Transfer purchasing info records to SAP SCM and explain the relationship

created.

Business ExampleThe raw materials that will be necessary for the manufacturing of the ZAP-1##will be procured from three vendors using different procurement methods. The capfor your 100 oz detergent bottle is procured from two vendors 0000100153 and0000100154. The procurement of CAP-1## from vendor 0000100153 will be donethrough traditional purchasing methods (purchase orders). Model the appropriatesteps so that plant 3100 can begin to receive caps via purchase orders immediately.

Task: Review SAP ECC Purchasing DataIn SAP ECC display a standard purchasing info record for your material CAP-1##.Transfer the info record to SAP SCM via the CIF using an integration model andview the results in the SAP SCM system.

1. In SAP ECC display a standard purchasing info record for plant 3100 toprocure the material CAP-1## from Vendor 100153 using the following data:

Field Name Data:Vendor 100153

Material CAP-1##

Purchasing Org. 3000

Plant 3100

Info Category Select Standard




2. What is the Info Record number for your CAP-1##?

3. What is the planned delivery time from the vendor to plant 3100?

4. In SAP ECC create and generate an integration model to transfer your inforecord for CAP-1## to the SAP SCM system. Use the following data forinput and be sure to save it as a variant.

Field Data

Model Name GROUP-##


APO Application INFO_RECS

5. Save you new Integration model as a variant PUR-## with a descriptionof GR## Info Recs

6. Now activate the integration model that was just generated.

7. View the results of the transfer in the SAP SCM System.



Solution 7: Purchasing Info RecordsTask: Review SAP ECC Purchasing DataIn SAP ECC display a standard purchasing info record for your material CAP-1##.Transfer the info record to SAP SCM via the CIF using an integration model andview the results in the SAP SCM system.

1. In SAP ECC display a standard purchasing info record for plant 3100 toprocure the material CAP-1## from Vendor 100153 using the following data:


Material CAP-1##

Purchasing Org. 3000

Plant 3100

Info Category Select Standard

a) Logistics→ Materials Management→ Purchasing→ Master Data→ Info Record→ Display

Transaction Code: ME13

2. What is the Info Record number for your CAP-1##?

Answer: Example 5300005106

3. What is the planned delivery time from the vendor to plant 3100?

Answer: Select the button.Planned delivery time is 10 days.

4. In SAP ECC create and generate an integration model to transfer your inforecord for CAP-1## to the SAP SCM system. Use the following data forinput and be sure to save it as a variant.




Field Data

Model Name GROUP-##


APO Application INFO_RECS

a) Logistics→ Central Functions→ Supply Chain Planning Interface→ Core Interface Advanced Planner and Optimizer→ IntegrationModel→ Create

Transaction Code:CFM1

b) Enter the above data in the header fields.

c) In the General Selection Options for Materials, enter MRP Controller2##, MRP type X0

d) Select Pur. Info Record on the left and click to enter furtherrestrictions and enter the following data in the Selection of PurchasingInfo Record section:

Field Data

Material-Dep. Source of SupplySelection

Select

Plnt 3100

Category of Info Record Normal

Execute. If the dialog box appears that warns of a long run time answerno to changing the selection criteria, . The next screen should show that1 info record was selected. You must save on this screen by clickingin order to save your model generation.

e) Select Back to return to the integration model selection screen

f) Do not Exit the Integration model.

5. Save you new Integration model as a variant PUR-## with a descriptionof GR## Info Recs

a) Select Save to save your variant

b) Enter your variant name PUR-## with a description of GR## InfoRecs, and select Save.





a) Logistics→ Central Functions→ Supply Chain Planning Interface→ Core Interface Advanced Planner and Optimizer→ IntegrationModel→ Activate

Transaction Code: CFM2

b) The name, logical system, and application of the model should defaultbut if not make sure you enter the correct information from the previous

exercise and then Execute .

c) Choose your model by double clicking on the latest date and click

to start the initial transfer.


a) SAP SCM menu path:Advanced Planning and Optimization→ MasterData→ Procurement Master Data→ Procurement Relationships

Transaction Code:/SAPAPO/PWBSRC1

b) Enter CAP-1## as the Product number and execute, . The nextscreen should show the info record after you drill down on the systemT90CLNT090. Drill down on the info record number and double clickon the operation icon to show the detail. It should show the informationfrom the info record in the top half of the screen and the transportationlane that was created in the bottom half of the screen. Be sure thedata is the same as that which you entered in the info record in theSAP ECC System.



Lesson Summary

You should now be able to:� Explain what a purchasing information record is� Explain if and why vendors are needed in conjunction with purchasing


between the new purchasing relationship so created.


SCM215 Lesson: Scheduling Agreements

Lesson: Scheduling Agreements

Lesson OverviewThis lesson introduces the use of scheduling agreements for external procurementpurposes in the SAP SCM system. There are two different scheduling agreementprocesses in the SAP SCM system. A distinction is made between SAP SCMscheduling agreements and SAP ECC scheduling agreements. First, we will lookat the functionality of the two types of scheduling agreements, then the datatransfer from the SAP ECC system via the CIF, and last the settings in the SAPSCM system and the SAP SCM configuration of scheduling agreements.


� Explain what a scheduling agreement is.� Create a simple scheduling agreement in SAP ECC .� Transfer a scheduling agreement to the SAP SCM System via the CIF and


Business ExampleThe bottle, CAP-1##, is a relevant material for the scheduling of ZAP-1##.The bottle will be procured from vendor 100154, Caps Inc. Since you have along-standing relationship with this vendor, and the bottle is used in such largevolumes, it warrants procurement through a purchasing contract. When neededscheduler�s will �release� against this contract. However, this vendor runs severaldifferent sizes and does not have unlimited capacity, so you must model them asa constraint.

Scheduling AgreementsThere are two types of scheduling agreements that can be created in SAP ECC, the standard SAP ECC Scheduling agreement and an SAP SCM schedulingagreement. The SAP SCM system can use both types but it uses them differently.

The SAP ECC scheduling agreement is intended that the entire process is carriedout in the SAP ECC system. These can be transferred to the SAP SCM systemthrough the CIF. In SAP SCM , the SAP ECC scheduling agreement is merelyused as a source of supply for an external procurement relationship when purchaserequisitions are created during the planning run. All other steps, such as convertingthe requisitions into SA delivery schedule lines and the SA release creation, arecarried out in the SAP ECC system.



Figure 67: Procurement Process with ECC Scheduling Agreements

An SAP SCM scheduling agreement is intended that the entire process is carriedout in the SAP SCM system. SAP SCM scheduling agreements can only bechanged by the SAP SCM system and not by SAP ECC . During the planning run,SAP SCM can then create SA schedule lines directly in SAP SCM. You can alsocontrol how and when scheduling agreement releases are generated by defininga release profile.

The following diagram illustrates the steps in the external procurement processusing SAP SCM scheduling agreements.



Figure 68: Procurement Process with SAP SCM Scheduling Agreements

External procurement using SAP SCM scheduling agreements is the standardexternal procurement process in the SAP SCM system. This process is carried outusing an ECC system and the planning functions of the SAP SCM system.

Prerequisites for using SAP SCM Scheduling agreements in SAP SCM are:

� SAP ECC system (Release 4.0 or newer)� SAP SCM system (Release 3.0A or newer)� You have specified that the leading system is an external system in the item

data under Additional Data during scheduling agreement maintenance inthe ECC system. The scheduling agreements are included in an activeintegration model of the CIF.

� If you need further functions (such as generation of forecast deliveryschedules, performance of tolerance checks, or definable release horizons),you must create a release creation profile in Customizing for the SAP SCMsystems (Supply Chain Planning→Collaborative Procurement→MaintainRelease Creation Profile). You then assign the release creation profile to theexternal procurement relationship.

� You have specified how the SA releases are to be output in Customizing forSupply Chain Planning under Collaborative Procurement→Set MessageTriggers in the SAP SCM system.



Figure 69: Data Maintenance with SAP SCM Scheduling Agreement

A scheduling agreement is specified as an SAP SCM scheduling agreement in theSAP ECC system in the item data under Additional Data. It must be specified thatthe primary system is an external system. The release profile is not transferredfrom the SAP ECC system but must be created in configuration of the SAP SCMsystem.



Scheduling Agreements Maintenance

1. You create a scheduling agreement in the SAP ECC system

In the case of scheduling agreements you must specify that the planningsystem is an external system during scheduling agreement maintenance inthe SAP ECC system. The consequence of this is that scheduling agreementdelivery schedule lines can then only be changed in the planning system(SAP SCM system). Furthermore, the scheduling agreements must beentered in an integration model of the Core Interface (CIF). This master datais moved to the SAP SCM system via initial data transfer. Changes to thedata of the scheduling agreement in the SAP ECC system are saved for thenext change transfer.

2. The SAP SCM system generates an external procurement relationship

The scheduling agreement transferred from the SAP ECC system is createdas an external procurement relationship in the SAP SCM system. Theexternal procurement relationship is product-specific and is assigned toa transportation lane. This is created simultaneously with the externalprocurement relationship. The external procurement relationship thuscontains the contractual details of the relationship between a source location(vendor or plant) and a destination location (plant). The transportation lane(describing a transportation relationship) contains the logistical data.

3. Maintain the scheduling agreement in the SAP SCM system.




In the external procurement relationship, you can display, and, to a certainextent, maintain the scheduling agreement data. Such data includes thefollowing:

� General information (such as the procurement type, document number,vendor, etc.).

� Settings such as the planned delivery time and the status of the externalprocurement relationship (active or inactive).

� Data on the assigned transportation lane: You can change thepriority and the costs for the transportation lane. Priority and costsof the transportation lanes can be taken into account in the sourcedetermination process.

� SAP SCM-specific scheduling agreement data:

Update of liveCache:You can specify when the information in the liveCache is to bemade available (for example, when the SA releases are generatedor not until they are output).

Forecast/planning delivery schedule:You can specify whether a non-delivery relevant forecast/planning(F/P) schedule is to be generated in addition to the operative(delivery-relevant) schedule. The data of the F/P schedule is nottransferred to the SAP ECC system, so that no goods receipts canbe posted against such schedules, for example.

Internet release:This option is available if you use the Supplier Workplace. Youcan specify that the SA releases must be acknowledged by thevendor via the Internet.

Release creation profile:You can control how and when scheduling agreement releases aregenerated by defining a profile for the creation of SA releasesin SAP SCM Customizing for Supply Chain Planning (underCollaborative Procurement→Maintain Release Creation Profile)and assigning it to an external procurement relationship.

E-mail address:The SA releases are sent in XML format to the address maintainedhere. If you have not maintained an address, the e-mail is sent tothe address maintained in the source location.

Additional functionality:




Costs:You can display the exact costs for the procurement relationship. Thecosts correspond to the conditions of the ECC scheduling agreement,but are represented as Fixed Costs and Variable Costs.

PO history:You can display all dependent events (such as receipts of goods andinvoices) relating to a scheduling agreement.

Release documentation:You can display the SA releases generated per scheduling agreementitem.



Exercise 8: Scheduling Agreements

Exercise ObjectivesAfter completing this exercise, you will be able to:� Display a simple scheduling agreement in SAP ECC .� Transfer a scheduling agreement to the SAP SCM System via the CIF and


Business ExampleThe bottle, CAP-##, is a relevant material for the scheduling of ZAP-1##.The bottle will be procured from vendor 100154, Caps Inc. Since you have along-standing relationship with this vendor, and the bottle is used in such largevolumes, it warrants procurement through a purchasing contract. When neededscheduler�s will �release� against this contract. However, this vendor runs severaldifferent sizes and does not have unlimited capacity, so you must model them asa constraint.

Task 1:Display an existing SAP SCM Scheduling Agreement in the SAP ECC system.

1. Display an existing SAP SCM Scheduling Agreement in the SAP ECCSystem to procure CAP-1## from vendor 100154 and observe the followingdata.


Agreement Type LP

Agreement Date Today’s Date

Purch. Organization 3000

Purchasing group 0##

Plant 3100

Storage Location 0001

Material Group 008

Validity End End of next year.

Material CAP-1##

Target Qty 1,000,000

Net Price $0.10




2. What is your scheduling agreement number?

Task 2:Now modify your integration model to include this schedule agreement in thedata transfer.

1. Modify your Info Recs integration model to include this schedule agreementin the data transfer.





Solution 8: Scheduling AgreementsTask 1:Display an existing SAP SCM Scheduling Agreement in the SAP ECC system.

1. Display an existing SAP SCM Scheduling Agreement in the SAP ECCSystem to procure CAP-1## from vendor 100154 and observe the followingdata.


Agreement Type LP

Agreement Date Today’s Date

Purch. Organization 3000

Purchasing group 0##

Plant 3100

Storage Location 0001

Material Group 008

Validity End End of next year.

Material CAP-1##

Target Qty 1,000,000

Net Price $0.10

a) Logistics→ Materials Management→ Purchasing→ OutlineAgreement→ Scheduling Agreement→ Display

Transaction Code: ME33L

b) A Scheduling Agreement number is needed. Press the F4 function key.Select the Purchasing Documents for Material search tab. Enter theMaterial, Plant, Purch. Doc. Category as shown in the table below.Select your Scheduling Agreement from the search result and pressenter to populate the scheduling agreement number in the DisplayScheduling Agreement: Initial Screen. Press enter again to displayyour scheduling agreement.

Material CAP-1##

Plant 3100

Purch. Doc. Category L




2. What is your scheduling agreement number?

Answer: Answer Varies

Task 2:Now modify your integration model to include this schedule agreement in thedata transfer.

1. Modify your Info Recs integration model to include this schedule agreementin the data transfer.

a) Logistics→ Central Functions→ Supply Chain Planning Interface→ Core Interface Advanced Planner and Optimizer→ IntegrationModel→Create

b) Select Get variants, then select Execute , and choose yourvariant PUR-##.

c) Select the SchedAgreements indicator on the left.

d) Next to the SchedAgreements indicator, select Further restrictions.

e) In the Scheduling Agreements Selection section enter the followingdata:

Field Data

Material-Dep. Source of Supply Select

f) Execute your model (answer NO to the warning of a long run time)and the resulting screen should show 1 Scheduling Agreement andone purchase req. selected.

g) Select Save, then select Back.

h) Save your variant on the selection screen by overwriting the previousPUR-## variant







b) The name, logical system, and application of the model should defaultbut if not make sure you enter the correct information from the previous

exercise and then select Execute .

c) Choose your model by double clicking on the latest date and select

to start the initial transfer.


a) SAP SCM menu path:Advanced Planning and Optimization→ MasterData→ Procurement Master Data→ Procurement Relationships

Transaction Code:/SAPAPO/PWBSRC1

b) Enter 3100 as the destination location, leave all other general selection

criteria blank, and execute, . The next screen should show the SAPSCM sch. agmt. and info rec for logical system T90CLNT090. ExpandT90CLNT090, expand the scheduling agreement number and doubleclick on the operation icon to show the detail. It should show theinformation from the info record in the top half of the screen and thetransportation lane that was created in the bottom half of the screen. Besure the data is the same as that which you entered in the info recordin the SAP ECC System.



Lesson Summary

You should now be able to:� Explain what a scheduling agreement is.� Create a simple scheduling agreement in SAP ECC .� Transfer a scheduling agreement to the SAP SCM System via the CIF and



SCM215 Unit Summary

Unit SummaryYou should now be able to:� Explain what a purchasing information record is� Explain if and why vendors are needed in conjunction with purchasing


between the new purchasing relationship so created.� Explain what a scheduling agreement is.� Create a simple scheduling agreement in SAP ECC .� Transfer a scheduling agreement to the SAP SCM System via the CIF and



Unit Summary SCM215


Unit 5SAP SCM Network Modeling

Unit OverviewCompared to the SAP R/3 system SAP SCM is a superior planning tool. Newplanning techniques like constraint based planning, optimization, and multi levelconstraint based planning will require additional data. This lesson will explorethe necessary master data to support the concept of Supply Chain Planning inSAP SCM.


� Explain the purpose and function of transportation mod� Create transportation modes to represent the different ways goods can be

transported in your supply chain.� Explain the purpose and function of means of transportation.� Create means of transportation to model different means of transportation

for planning purposes.� Assign means of transportation in their relevant transportation Lanes.�� Explain the concepts and the need for transportation lanes in SAP SCM.� Apply the special procurement function to an existing material in SAP ECC

and transfer it to SAP SCM.� Explain the fundamental information associated with transportation lanes

and its relevance in the SAP SCM components where it is required.� Create transportation lanes manually� Create transportation lanes via mass processing

Unit ContentsLesson: Transportation Modes in SAP SCM ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . .225

Exercise 9: Create a Transportation Mode.... . . . . . . . . . . . . . . . . . . . . . . . . . .229Lesson: Means of Transportation in SAP SCM... . . . . . . . . . . . . . . . . . . . . . . . . . .232

Exercise 10: Create Means of Transportation .. . . . . . . . . . . . . . . . . . . . . . . .239Lesson: Transportation Lanes in SCM... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .245


Unit 5: SAP SCM Network Modeling SCM215

Exercise 11: Create a Transportation lane .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .261


SCM215 Lesson: Transportation Modes in SAP SCM

Lesson: Transportation Modes in SAP SCM

Lesson OverviewTo perform planning using the Supply Network Planning (SNP) and/or theTransportation Planning/Vehicle Scheduling (TP/VS) component you will haveto set up the information related to the transportation modes, means and vehicleresources. In this lessons you will learn how to setup Transportation Modes inorder to better model your transportation capabilities.


� Explain the purpose and function of transportation mod� Create transportation modes to represent the different ways goods can be

transported in your supply chain.

Business ExampleIn order for your company�s product to move between locations, you need tomodel the different methods of transportation that will be used. Create themultitude of transportation modes that your company uses. Assume the modes are:air; road, and express. These modes will be further assigned to the transportationmethods representing: air express, full-truck-load (FTL); and less-than-truck-load(LTL) and parcel express. The methods that can be used to transport goods areassigned to the transportation lanes in which they are valid.

Transportation ModeSupply Network Planning (SNP) integrates purchasing, manufacturing,distribution, and transportation so that comprehensive tactical planning andsourcing decisions can be simulated and implemented on the basis of a single,global consistent model. SNP uses advanced optimization techniques, based onconstraints and penalties, to plan product flow along the supply chain. The resultis optimal purchasing, production, and distribution decisions; reduced orderfulfillment times and inventory levels; and improved customer service.

Starting from a demand plan, SNP determines a permissible short- to medium-termplan for fulfilling the estimated sales volumes. This plan covers both the quantitiesthat must be transported between two locations (for example, distribution centerto customer or production plant to distribution center), and the quantities to beproduced and procured. When making a recommendation, SNP compares alllogistical activities to the available capacity.



The Deployment (DEPL) function determines how and when inventory shouldbe deployed to distribution centers, customers, and vendor-managed inventoryaccounts. It produces optimized distribution plans based on constraints (such astransportation capacities) and business rules (such as minimum cost approach,or replenishment strategies).

The Transport Load Builder (TLB) function maximizes transport capacities byoptimizing load building.

The Transportation Planning/Vehicle Scheduling (TP/VS) area is describedhere. This area consists of the two partial components Transportation Planningand Vehicle Scheduling. Transportation Planning is concerned with middle tolong-term planning; Vehicle Scheduling encompasses short-term planning andleg determination.

Transportation Planning enables the transportation planner to make optimum useof the available capacity of freight vehicles, trains, ships, and airplanes. In thisway, loading capacities can be planned more efficiently and costs are lowered,especially since most customers depend completely on external transportationcompanies for optimum transportation. In short, Transportation Planning resultsin deliveries that are on time and at minimum cost.

TP/VS uses SAP SCM master data and customizing settings to create plannedshipments for both inbound and outbound transportation demand that can occurin your supply chain network.

Figure 70: Transportation Mode, Means of Transportation , Resources



The transportation mode is a code that is used to define a physical method oftransportation. Examples of transportation modes are:

� Rail� Ship� Truck� Air

While it is a good practice to define the various transportation modes that existwithin your supply chain network, the transportation mode is required only if youwant a given transportation method to be automatically assigned by the TP/VSoptimizer when a selected capacity based on, say, weight, volume or units isexceeded within a planned delivery. The Transportation Mode is defined in APOcustomizing and is assigned to Means of Transportation .

Note: The Transportation Mode is not used by SNP planning.



Exercise 9: Create a Transportation Mode

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a Transportation Mode� View the Transportation Mode table in SAP SCM Customizing

Business ExampleYour business will move your detergent using several different means oftransportation. In order plan the supply chain properly you need to identify yourshipping options in SAP SCM. Due to the different capacity constraints, durationsand vendors, that your company uses to ship your detergent, all of these factorsneed to be modeled to support proper planning. Define a new TransportationMode for which one or more transportation methods can be assigned.

Task:Create a new transportation mode to support a new method of trucking that yourcompany wants to use in planning. Go to the Transportation Mode definition tableand add an new entry.

1. Add a new transportation mode: TR## to the transportation mode table.



Solution 9: Create a Transportation ModeTask:Create a new transportation mode to support a new method of trucking that yourcompany wants to use in planning. Go to the Transportation Mode definition tableand add an new entry.

1. Add a new transportation mode: TR## to the transportation mode table.

a) SAP SCM IMG menu path: Advanced Planner and Optimizer (APO)→ Transportation Planning/Vehicle Scheduling (TP/VS)→ BasicSettings→ Maintain Transportation Mode

b) Select

c) Enter TR## (Where ## is your group number) in the Trans. grp field

d) Select SAVE

e) Select Exit to return to the IMG.



Lesson Summary

You should now be able to:� Explain the purpose and function of transportation mod� Create transportation modes to represent the different ways goods can be

transported in your supply chain.



Lesson: Means of Transportation in SAP SCM

Lesson OverviewIn the course of using Supply Network Planning (SNP) and/or the TransportationPlanning/Vehicle Scheduling (TP/VS) components, you will have to set up theinformation related to the transportation modes, means and vehicle resources. Inthis lessons you will learn how to setup Means of Transportation that will identfyhow you can move your products between two locations.


� Explain the purpose and function of means of transportation.� Create means of transportation to model different means of transportation

for planning purposes.� Assign means of transportation in their relevant transportation Lanes.�

Business ExampleIn order for your company�s product to move between locations, you need tomodel the different techniques of transportation that will be used. To transportfreight between your various locations you will use several transportation methodsrepresenting: air express, full-truck-load (FTL); and less-than-truck-load (LTL)and parcel express. The methods that can be used to transport goods are assignedto the transportation lanes in which they are valid.

Means of TransportationThe Means of Transportation is used to identify a specific method of transportationthat can be used to transport goods in a transportation lane (for example, a 48�truck with full-truck-load capacity, or a refrigerated truck, or a rail car). Ameans of transportation describes the means of transport used to carry out thetransportation between locations. Various planning parameters are specified in atransportation method that are used in the Supply Network Planning (SNP) andTransportation Planning/Vehicle Scheduling (TP/VS) components.

The transportation of goods between two locations, a source and a target, isdefined through transportation lanes. Assigned to the transportation lanes are themeans of transportation that represent the actual modes of transportation that canbe used to transport the goods. A means of transportation can be assigned to anytransportation lane. A means of transportation can apply to the transportation ofall products moved within the lane or it can apply to a specific product or products.


SCM215 Lesson: Means of Transportation in SAP SCM

Transportation-relevant attributes that are used in the planning process are definedfor the means of transportation when it is assigned to a transportation lane. Theseattributes include data such as transportation time and costs.

Figure 71: Means of Transport Customizing

Before transportation methods can be assigned to transportation lanes they mustbe defined in SAP SCM Customizing. Means of transportation are maintained inSAP SCM Customizing under Advanced Planner and Optimizer→ Master Data→ Transportation Lane→ Maintain Means of Transport There are a number ofparameters and attributes that can be configured for each method:

� Means of Transport (the name in this table for Means of Transportation): Used to identify a particular transportation method. It must be uniquewithin the table.

� Standard Code:� Means of Transport Description (the description of the means of

transportation )� Average Sp: the speed is used to compute the transit duration of the means.

The system divides the transportation lane distance by the speed to derivethe duration.

� Factor: This value is used to compute the �run-time distance� to be used incomputing the duration of a means of transportation within a transportationlane.

� Setup Time: This time, in HH:MM, can be used to specify the minimumtime to be spent by a vehicle resource assigned to the transportation methodbetween two trips.

� Avg Work Time of Transp. Method: Defines the amount of time in HH:MMthat a means of transportation is available during a work day.



� Compatibility: Indicates the compatibility of a means of transportation for aTransportation Group. The standard value is �full compatibility�. Whichmeans that the transportation is capable of transporting all products.

Compatibility is determined during Transportation Group assignment, If aparticular means of transportation is defined as compatible with a particulartransportation group, that means that only products belonging to thattransportation group can be transported by the means of Transportation . Ifthe �incompatible� setting is used that means that the products belonging tothe transportation group cannot be transported by the means of transportation. The Transportation Group field is located in the Product master in the�Attributes� tab. The transportation group field is copied from the ECCMaterial Master, Sales: General Plant view.

� Transportation Mode: The attribute that is used to group like means oftransportation . This attribute is only used by TP/VS

� OwnTrMeth: Used to indicate that a means of transportation represents aninternal corporate fleet of vehicles.

� Internal Resource:� Schedule: Used to indicate that a means of transportation uses itinerary

scheduling.� TSW Means of Transportation: Shipments with this means of transport are

relevant for the Oil and Gas component TSW (Traders and SchedulersWorkbench).:

� GIS Qaulity: Set this indicator for a means of transport if you want to make amore precise calculation of durations and distances using the GeographicInformation System (GIS) together with the Internet Graphic Server (IGS)within a transportation lane.

� Low Average Speed: IF you are working with the geographic informationsystem (GIS) and the internet graphic server (IGS) to calculate durations anddistance and you set the indicator for Distance and Duration Calculationin IGS Quality , you can enter a value for the low speed of the means oftransport in this field. The system then uses this value when calculating theduration and distance for the relevant means of transport and stage.

� Medium Average Speed: If you are working with the geographic informationsystem (GIS) and the internet graphic server (IGS) to calculate durations anddistance and you set the indicator for Distance and Duration Calculation inIGS Quality , you can enter a value for the medium speed of the means oftransport in this field. The system then uses this value when calculating theduration and distance for the relevant means of transport and stage.

� High Average Speed: If you are working with the geographic informationsystem (GIS) and the internet graphic server (IGS) to calculate durations anddistance and you set the indicator for Distance and Duration Calculation



in IGS Quality , you can enter a value for the high speed of the means oftransport in this field. The system then uses this value when calculating theduration and distance for the relevant means of transport and stage.

Figure 72: Transportation Time

An important planning value calculated by the SAP SCM SNP and TP/VSoptimizers is the transportation time required for each configured means oftransportation used in a planning process. In this calculation the optimizer firstcomputes a �run-time distance� . The run-time distance is calculated by thesystem by multiplying the distance factor from the means of transportation by thegeographic distance that has been calculated for the transportation lane to whichthe means of transportation is assigned. The system then divides the run-timedistance by the speed from the means of transportation to compute the Durationto be used in the optimization process. Considered with the transportation costsand delay penalties, the transportation time is used to decide which means oftransportation should be selected for a load.



Figure 73: Transportation Lane Data

After the Means of Transportation is defined in SAP SCM Customizing, it canbe assigned to any transportation lane in which it is relevant. When assigning aMeans of Transportation to a transportation lane there are a number of attributesthat can be specified.

Validity dates Enter the start and end date of the time period thisparameter applies to.

Control indicators Set this indicator ...All products if you want this means of transportation to apply

to all products for which procurement has beendefined. If this flag is not set, the means oftransportation applies only to those productswhich have been explicitly assigned to thetransportation method.

Aggregated planning If the means of transportation is valid foraggregated planning, for example, in NetworkDesign or Supply Network Planning

Detailed planning For detailed planning, for example, inTransportation Planning/Vehicle Scheduling

Fixed duration of transport if this setting should not be overwritten byautomatic calculation, for example, during themaintenance of new lanes



Fixed distance if this setting should not be overwritten by anautomatic calculation of distance factors duringmaintenance of new lanes.

Discrete mode for transportation optimization to be calculated inwhole numbers, in other words, no half loads ona truck. Relevant only for SNP

Parameters Maintain the following parameters:

� Transportation calendar (SAP SCMcustomizing)

� Duration of transport Distance covered� Transportation costs per unit of measure� Cost function� Resource� Vehicle costs per unit of distance� TLB profile� Rounding off period

Note

The duration of transport is specified in hours andminutes (for example: 12:22) and refers to thenet duration, in other words, the actual time inmotion. Bucket-oriented planning applicationssuch as SNP calculate the gross duration usingthe following formula: Net duration divided byaverage working time, or time in motion, forexample the number of hours driven in one day.

Gross duration of transport refers to the timebetween departure and arrival.

Short text Text describing the assignment of a means oftransportation to a lane

The validity period (Start date, End date) is required for the means oftransportation . If the means transportation is to be available for all products tobe transported within the transportation lane. The For all products box should bechecked. Otherwise, the product number is entered in the Product field when themeans of transportation is assigned to a transportation lane. For use with SNP, theAggr. planning box must be checked and if the means of transportation is to beused in TP/VS planning the Det. planning box must be checked.



Exercise 10: Create Means ofTransportation

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create new Means of Transportation for modeling different transportation

options.

Business ExampleBased on the fact that your company has decided to transport product using severaldifferent means, you need to set up two new transportation options that be assignedto various transportation lanes that will be used by both SNP and TP/VS planning.

Task: Define Means of TransportationDefine three new means of transportation that will be used to model how yourproduct will move through your supply chain. Each means of transportationwill identify the speed, working time and a distance factor that will be used inplanning. You will create one transportation method to represent a full truck loadshipment, the second will used for rail shipments and the third will be used fornext day air express shipments.

1. Create Means of Transportation TRK##, representing a full-truck-load withthe following settings:

Means of Transport TRK##

Description Truck - Gr.##

AverageSp. 60

Factor 1.000

Setup Time 1:00

Work Time 24:00

Component Compatible with all

TranspMode TR##

OwnTrMeth blank

Schedule blank




2. Add a second Means of Transportation to represent a rail shipment: RAIL##using the following data:

Means of Transport RAIL##

Description Rail Car - Gr.##

AverageSp. 80

Factor 1.100

Setup Time 2:00

Work Time 24:00


TranspMode Leave blank

OwnTrMeth blank

Schedule blank

3. Add a third Means of Transportation to represent a next day air expressshipment: AIREXP## using the following data:

Means of Transport AIREXP##

Description Air Gr.##

AverageSp. 150

Factor .500

Setup Time 1:00

Work Time 24:00



OwnTrMeth blank

Schedule blank



Solution 10: Create Means ofTransportationTask: Define Means of TransportationDefine three new means of transportation that will be used to model how yourproduct will move through your supply chain. Each means of transportationwill identify the speed, working time and a distance factor that will be used inplanning. You will create one transportation method to represent a full truck loadshipment, the second will used for rail shipments and the third will be used fornext day air express shipments.

1. Create Means of Transportation TRK##, representing a full-truck-load withthe following settings:


Description Truck - Gr.##

AverageSp. 60

Factor 1.000

Setup Time 1:00

Work Time 24:00


TranspMode TR##

OwnTrMeth blank

Schedule blank

a) SAP SCM IMG menu path:Advanced Planner and Optimizer (APO)→Master Data→ Transportation Lane→ Maintain Means of Transport

b) Choose New Entries

c) Enter data for new Means of Transportation from table.

d) Press ENTER and enter through any warnings.

2. Add a second Means of Transportation to represent a rail shipment: RAIL##using the following data:




Means of Transport RAIL##

Description Rail Car - Gr.##

AverageSp. 80

Factor 1.100

Setup Time 2:00

Work Time 24:00



OwnTrMeth blank

Schedule blank

a) Add another entry to the Means of Transportation table using the datain the table.

b) Press ENTER and enter through any warnings.

3. Add a third Means of Transportation to represent a next day air expressshipment: AIREXP## using the following data:

Means of Transport AIREXP##

Description Air Gr.##

AverageSp. 150

Factor .500

Setup Time 1:00

Work Time 24:00






OwnTrMeth blank

Schedule blank

a) Add another entry to the Means of Transportation table using the datain the table.

b) Select SAVE

c) Select Exit



Lesson Summary

You should now be able to:� Explain the purpose and function of means of transportation.� Create means of transportation to model different means of transportation

for planning purposes.� Assign means of transportation in their relevant transportation Lanes.�


SCM215 Lesson: Transportation Lanes in SCM

Lesson: Transportation Lanes in SCM

Lesson OverviewTo properly model the enterprise supply chain network it is important tounderstand how the various sources and destinations of material flows areconnected to form the network. The object used to make these connections in thesupply chain network is the Transportation Lane. In this lesson you will learnthe characteristics of transportation lanes, how to create them and the variousparameters and attributes that must be assigned to the transportation lanes toproperly plan the material flows within your supply chain network.


� Explain the concepts and the need for transportation lanes in SAP SCM.� Apply the special procurement function to an existing material in SAP ECC



Business ExampleAssume that the locations between which your company needs to move its producthave been transferred to SAP SCM via the CIF. You now need to assign thedifferent methods of transportation your company uses, each with different costs,and different durations.

Transportation Lanes

Figure 74: Basic Transportation Lane Relationships



A transportation lane in SAP SCM represents a direct route between two locationsthat can be used to source and transport products between them. Each lane isdefined by its source and target locations, depending on the direction of traffic,and is assigned products to be transported along the route. If you want to transferproducts between two locations in the supply chain (for example, from a vendor toa production plant), a transportation lane has to exist between the two locations.Transportation lanes are created in SAP SCM for this reason.

The lanes and locations represent the supply chain network. Each lane is alsoassigned available transportation methods. The following SAP SCM componentsmake use of transportation lanes and their associated data:

� Supply Network Planning (SNP)� Network Design (ND)� Production Planning/Detailed Scheduling (PP/DS)� Transportation Planning/Detailed Scheduling (TP/VS).� Deployment (DEPL)� Transport Load Builder (TLB)� Global Available to Promise (GATP)

Figure 75: Basic Transportation Lane Data



Creation of transportation lanes enables you to:

� Define the product procurement parameters, such as lot sizes, cost functions,unit costs, and lane priorities. This data is used in Supply Network Planning,Deployment, Transport Load Builder and PP/DS.

� Define the means of transport (transportation method) for each lane (truck,ship, rail, air, for example) and the related parameters, such as transportationcosts, distances and shipment duration.

� Assign product-specific means of transport (transportation method). The dataassigned in this process is used in Supply Network Planning, Deployment,and Transport Load Builder.

� Assign transportation service providers (carriers) to the lanes. Transportationservice providers assigned to transportation lanes are used in the TP/VScomponent to assign transportation service providers to planned shipments.

Considered part of SAP SCM master data, transportation lanes usually remainunchanged over a period of time. Transportation lanes can be maintainedindividually or in groups. Mass maintenance of transportation lanes facilitate thegeneration and maintenance of large quantities of transportation supply chain data.There is no equivalent master data structure in the SAP ECC System. However,the information in the SAP ECC System that corresponds to a transportation lanesuch as the special procurement key can be defined in the material master.

In the SAP ECC Sales and Distribution and Logistics Execution applicationsthere is an organizational element, the Route, that is used to represent an itineraryconnecting a shipping point and a customer ship-to address. Although the routedefinition in the SAP ECC System contains some delivery and shipment planningdata, the transfer of route-related information is not performed for SAP SCM.Generally, the SAP SCM transportation lane master data is much more precise andflexible for use in the SAP SCM planning components.



Figure 76: External Procurement Relationships

One of the main data structures that can be defined within a transportation lane isthe External Procurement Relationships. These relationships are used in SupplyNetwork Planning. Purchasing info records, contracts or outline agreements, withwhich you create price and supply agreements with certain suppliers in the SAPECC System can be transferred to the SAP SCM System as external procurementrelationships. A corresponding transportation lane is then created in the SAP SCMsystem. In principal, transportation lanes are maintained on a product-specificbasis. However, they can be used for all products. A transportation lane containsone or more transportation methods, also referred to as transport methods, that canbe used for transporting the product (truck or rail, for example). You can definecosts and duration times in the transportation lane. You can then set priorities toenable the system to make stock transfer decisions.

The ECC Special Procurement Key and TransportationLanesAs of SCM 4.0 and PI2003.1, using the special procurement key, the CIF cancreate Transportation lanes.

Storing a special procurement type with procurement type F: ExternalProcurement and special procurement U: Stock Transfer (in the MRP 2 view of theECC material master record), means that the material has to be procured externallyfrom another plant (supplying plant) or transferred from another plant. To also beable to perform stock transfers for this material in the SAP SCM, system, there hasto be a transportation lane from the supplying plant to the receiving plant. If youhave transferred a material with this special procurement type from the SAP ECCsystem, the SAP SCM system automatically creates a corresponding transportation



lane from the supplying plant to the receiving plant for the supplying plant (fromthe special procurement type) and material/plant combination. The transportationlane is given the creation indicator �S� for special procurement.

Figure 77: Transfer of Special Procurement Key to SAP SCM

Caution: When the material master record is transferred from the SAPECC system to the SAP SCM system, if there is already a manually createdtransportation lane with exactly the same supplying plant and receivingplant combination, this is kept and no new transportation lane is created.

In the SAP ECC system, if you have changed the supplying plant in the specialprocurement type, the SAP SCM system creates a new transportation lane forthe new supplying plant (from special procurement type) and material/plantcombination. The already existing transportation lane and now invalidcombination between supplying plant and receiving plant in the ECC system islocked for orders in the SAP SCM system. This can be recognized by the lockindicator X that is set by the system.

If you have removed the special procurement type from the material masterrecord in the SAP ECC system, the SAP SCM system locks the already createdtransportation lane so that it cannot be used in orders.

If transportation lanes (that were generated or manually created when purchasingdata was transferred from the SAP ECC system) already exist in the SAP SCMsystem, the SAP SCM system takes these transportation lanes into account when



determining sources of supply. In this instance, the transportation lanes thatwere automatically generated from the SAP ECC material master are not takeninto account.

Transportation Lane MaintenanceUse this function to create and maintain the transportation lanes in your supplychain model. This maintenance function allows you to:

� define product procurement parameters such as lot sizes, cost functions, unitpurchase costs and priorities for each lane

� define transportation methods for each lane and the related parameters suchas transportation costs, distances, duration

� assign product-specific transportation methods assign carriers to lanes

Transportation lanes can be maintained in three ways: 1.) Using the masterdata Transportation Lane Maintenance Screen, 2.) using the maintenancefunctions in the Supply Chain Engineer (SCE) or 3.) using the mass maintenancefunction for transportation lanes. Using the Supply Chain Engineer you can seea graphical representation of the supply chain network with the transportationlanes connecting the source and target locations. In the SCE, arrows on the lanesindicate the direction of traffic between source and target locations. You can viewand maintain lane relevant data through a pull-down context menu either in thetree or on the map. For example, you can display a list of all products assignedto a particular lane, or you can change the transportation method for a certainproduct within a specific time period.

In this lesson we will focus on the use of the Transportation Lane Maintenancescreen and the use of the mass maintenance function to create and maintaintransportation lanes. Shown below is the basic layout of the TransportationMaintenance Screen.



Figure 78: Transportation Lane Maintenance Screen Structure

In this screen you can:

� define product procurement for a transportation lane� define transportation methods for a transportation lane� define product-specific assignment of transportation methods� assign carriers to a transportation method� launch a query to view all assignments valid for a specific lane Structure

Fundamentally, the maintenance screen is organized into five areas where datamay be created, changed or viewed. Shown in the table below is a brief descriptionof these screen areas.



Figure 79: Creating a Transportation Lane

Screen Areas....Header Data and Controls

� Header data : Transportation Planner� Selection of Product-specific transportation

methods� Selection of external carrier assignment� Selection of lane overview

The Product ProcurementArea A transportation lane can consist of the

procurement view for stock transfers inSupply Network Planning. You can also makeproduct-specific settings.

� Procurement priority (heuristic anddeployment only)

� Distribution priority (deployment only)� From and to lot sizes (heuristic only)� External procurement relationship data

(transferred through the CIF � this isrelevant when working with schedulingagreements)



Screen Area...The Means of Transport area One or more means of transports can be

specified for a transportation lane. The means oftransport are used in Supply Network Planning(SNP) and Transportation Planning/VehicleScheduling (TP/VS). You specify All Productsif you want to use a means of transport whenprocuring or shipping all products within thetransportation lane, If this indicator is not set,the means of transport only applies to theproducts that are explicitly assigned to it in theProduct-specific means of transport area.

The following are the major attributes that canbe set in the Means of Transport area:

� Aggregated planning (indicator must beset for SNP, PP/DS and ND)

� Detailed Planning (indicator must be setfor TP/VS planning)

� Transportation calendar� Transportation duration� Additional retention period� Transportation distance� Transportation costs (SNP and TP/VS

optimizers only)� Cost function (SNP optimizer only)� TLB profile (for the Transport Load

Builder)� Bucket offset for SNP transportation� Discrete means of transport (SNP

optimizer only)



Figure 80: Transport Lot Size Profile

Screen Area...Product-specifictransportation area or Carrierassignment area (Usedonly for carrier assignmentin the SAP SCM TP/VScomponent).

Product-specific transportation area:

� Transportation costs (SNP optimizer only)� Consumption (of transportation resource)� SNP lot size profile. You can

maintain transport lot size profiles forproduct-dependent means of transport.For example, you can use a lot size profileto specify that only full palettes are to betransported. The rounding value specifieswhether lot sizes are rounded to a wholenumber or some multiple of a number. Forexample, 8 or 12 per layer on a pallet or96 units for a full pallet quantity.

� Stacking factor (for the Transport LoadBuilder)

Carrier assignment area:

� Transportation costs per unit-of-measure� Carrier costs per unit-of-measure per

distance unit.� Carrier priority� Business share percentage



Figure 81: Detail View of the Means of Transport

Screen Area...Detail view This area opens up when an item from the

Product Procurement, Transportation Methods,Product-specific transportation methods orCarrier assignment areas is selected. All of theparameters and attributes from the selected entryis displayed or open for entry in this area.

Transportation Lane Mass MaintenanceMass maintenance of multiple transportation lanes simplifies the maintenance oflarge quantities of supply chain transportation data. This function is particularlyuseful if you must create transportation lanes between large numbers of source andtarget locations. The following activities are possible in mass maintenance:

� Simultaneous generation of multiple lanes� Assignment of a number of products to a transportation lane(s) Quota

arrangements for multiple products in a location.

Geographic Information System in SAP SCMAs of release 4.0 of SAP SCM, it is now possible to exactly calculate durationtimes and distances for means of transport within transportation lanes.



Figure 82: GIS in SAP SCM

Until now, the system used a straight line (Aerial Distance) to calculate thedistance (that is, not taking roads or other transportation lanes into account) andan average speed to calculate the duration time. By connecting the GeographicInformation System (GIS) to the Internet Graphic Server (IGS), you can,depending on the GIS tool provider, calculate the duration time and distance foreach means of transport within a transportation lane (with exact road detail).



Customers can make use of GIS in different areas: .

� Display a map of all shipments planned for tomorrow to evaluate the qualityof the current planning status.

� Retrieve the distance between Chicago and New York City as an input totransportation planning or supply network planning.

� Retrieve the distance between Chicago and New York City as an input tofreight costing.

� If the shipper retrieves the identical distance, the billing between shipperand carrier can most likely be done automatically.

� Retrieve the route from Chicago, plant A to New York City, customer B as aguidance to the truck driver.

� Retrieve the geo-coordinates (longitude and latitude) of a given customeraddress.

� Check the correctness of a given ship-to address.� Retrieve weather conditions and forecast for a given region as an input to

transportation planning.� Retrieve micro-images of a given area as a guidance to evaluate local

shipping conditions (docks, yards, �)

The GIS functionality is activated at the Means of transportation level. As of SCM4.0 the Means of Transportationtable is now master data (Advanced Planningand Optimization→ Master Data→ Transportation Lane→ Maintain Meansof Transportation.

Figure 83:

You set the Distance and Duration Calculation in GIS Quality indicator for ameans of transport if you want to make a more precise calculation of durationsand distances using the Geographic Information System (GIS) together withthe Internet Graphic Server (IGS) within a transportation lane. If not checked:distance is determined as aerial distance.

If GIS Quality is checked for this means of transport, you have to specify avelocity profile by entering three velocities. The profile is passed over to theexternal GIS server to calculate the needed driving time. GIS systems typicallycategorize streets by �slow�, �medium�, or �fast�. By maintaining the profile, youcontrol how fast a means of transport can travel on a slow, medium, or fast road.



SAP SCM does not come with any GIS content. It only has the ability to make useof GIS content. Customers have to purchase the content in the form of servicesfrom external GIS vendors. As stated earlier SAP SCM interfaces with GISvendors through the use of the Internet Graphic Server (IGS). This �Plug-in� wasdelivered as part of SAP Basis 6.20 of SAP SCM.

� By using mass maintenance� When individually maintaining a lane� By maintaining transportation zones

To access the GIS data quickly when using generated transportation lanes(transportation zones), you have to make a preselection of this data in backgroundprocessing. To make this preselection, choose the following SAP SCM menupath:Advanced Planning and Optimization→ Master Data→ TransportationLane→ Preselection of GIS Data

This transaction obtains distance and duration information for the specified scope(lanes and means of transport) from the connected GIS server and stores theresults in table SAPAPO/TRDIDUPS. When runtime lanes are created later onduring an optimization run, the distance and duration are obtained from this table.You need to re-run the transaction if you add or modify locations to update theGIS data. Note: The transaction may run for one or more hours, depending onthe scope. You cannot terminate it without losing the data. Once you start thetransaction, all old records are deleted.

Figure 84: Duration and Distance Calculations



When Maintaining the transportation lane individually, users can execution theduration and distance calculation by selecting the Generate Proposal button. If theGIS is connected and available, and you have activated the IGS for the means oftransport concerned, the duration time and distance is recalculated. The status inthe Precision field changes to 0100 � IGS Accuracy.



Exercise 11: Create a Transportation lane

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create transportation lanes using the transportation lane maintenance screen.

Business ExampleYou have created locations in SAP SCM master data that represent the suppliers,production plants, distribution centers and customers to whom products willflow in the supply chain. The appropriate means of transport/transportationmethods have also been created in SAP SCM customizing. You need to createthe transportation lanes that will allow product flows to take place subject to thespecified planning attributes and parameters that apply to each lane.

Task:In Model 000, create a transportation lane from the source location, Plant3100 to the target location, Vendor Ven-##. You will also create a ProductProcurement entry in the lane for All Products. Assign the Means ofTransport/Transportation Methods TRK##, RAIL## and AIREXP## to thetransportation lane.

1. Go to the Transportation Lane Maintenance screen in SAP SCM master dataand create a transportation lane between Plant 3100 and the Vendor Ven-## .

2. To move the detergent via truck create/assign the means oftransport/transportation method: TRK## to the transportation lane using thedata from the table below:

Field Name DataValidity section:Transportation Method TRK##

Start date Today’s Date

End date 12/31/9999

Control Flags SectionValid for All Products Select

Aggr. planning Select

Det. planning Select

Fixed Trnsprt Dur. Leave blank

Fix.Trspttn Dist. Leave blank




Discr. MnsOfTrnspt Leave blank

Parameters Section:

Select:Trsp. Calendar Leave blank

Trsp. duration Value is calculated by GenerateProposal

Add.Retent.Per. Leave blank

Trsp.Distance Value is calculated by GenerateProposal

Trans.costs Per Leave blank

Cost Function Leave blank

Resource Leave blank

MnsOfTrnsptCosts 1.000

TLB Profile Leave blank

Period Factor 0.50

Short Descr. of Means ofTransport Assignment Section:Description Full Truck Load Gr.##

3. To move your detergent via rail, create/assign the transportation method forRAIL## in the transportation lane using the data from the table below:

Field Name DataValidity section:Transportation Method RAIL##


End date 12/31/9999










Parameters Section:Select:

Trsp. Calendar Leave blank







MnsOfTrnsptCosts .600


Period Factor 0.50

Short Descr. of Means ofTransport Assignment Section:Description Rail Gr.##

4. To move your detergent via air, create/assign the transportation method forAIREXP## using the data from the table below:

Field Name DataValidity section:Transportation Method AIREXP##


End date 12/31/9999




















Period Factor 0.50

Short Descr. of Means ofTransport Assignment Section:Description Air Expr. Gr.##



Solution 11: Create a Transportation laneTask:In Model 000, create a transportation lane from the source location, Plant3100 to the target location, Vendor Ven-##. You will also create a ProductProcurement entry in the lane for All Products. Assign the Means ofTransport/Transportation Methods TRK##, RAIL## and AIREXP## to thetransportation lane.

1. Go to the Transportation Lane Maintenance screen in SAP SCM master dataand create a transportation lane between Plant 3100 and the Vendor Ven-## .

a) SAP SCM menu path:Advanced Planning and Optimization→ MasterData→ Transportation Lane→ Transportation Lane

b) Enter theModel name000, Start loc. 3100 and Dest. loc. VMI-##

c) Select New Entries

d) In the Product Procurement area select Create

e) In the Product Procurement detail view screen, select the AllProducts radio button

f) Enter Today’s date in the Start Date.

g) Enter 12/31/9999 in the End date.

h) Select Copy and Close

2. To move the detergent via truck create/assign the means oftransport/transportation method: TRK## to the transportation lane using thedata from the table below:

Field Name DataValidity section:Transportation Method TRK##


End date 12/31/9999










Parameters Section:

Select:Trsp. Calendar Leave blank









Period Factor 0.50

Short Descr. of Means ofTransport Assignment Section:Description Full Truck Load Gr.##

a) Select Creation of new entry in the Means of transport section.

b) Enter the data from the table in the Means of transport Detail Screenthat opens on the right side of the screen.

c) Select Copy in the Means of Transport detail screen.

3. To move your detergent via rail, create/assign the transportation method forRAIL## in the transportation lane using the data from the table below:

Field Name DataValidity section:Transportation Method RAIL##


End date 12/31/9999


















MnsOfTrnsptCosts .600


Period Factor 0.50

Short Descr. of Means ofTransport Assignment Section:Description Rail Gr.##

a) Remove the TRK## entry and press ENTER

b) Enter the data from the table for Transportation Method RAIL##.

c) Select Copy in the Means of Transport detail screen.

4. To move your detergent via air, create/assign the transportation method forAIREXP## using the data from the table below:




Field Name DataValidity section:Transportation Method AIREXP##


End date 12/31/9999




















Period Factor 0.50

Short Descr. of Means ofTransport Assignment Section:Description Air Expr. Gr.##

a) Remove the RAIL## entry and press ENTER

b) Enter the data from the table for Transportation Method AIREXP##.

c) Select Copy and Close in the Means of Transport detail screen.

d) Select SAVE



Lesson Summary

You should now be able to:� Explain the concepts and the need for transportation lanes in SAP SCM.� Apply the special procurement function to an existing material in SAP ECC




SCM215 Unit Summary

Unit SummaryYou should now be able to:� Explain the purpose and function of transportation mod� Create transportation modes to represent the different ways goods can be

transported in your supply chain.� Explain the purpose and function of means of transportation.� Create means of transportation to model different means of transportation

for planning purposes.� Assign means of transportation in their relevant transportation Lanes.�� Explain the concepts and the need for transportation lanes in SAP SCM.� Apply the special procurement function to an existing material in SAP ECC




Unit Summary SCM215



Test Your Knowledge

1. The object used to connect the various sources and targets of material flowsis theFill in the blanks to complete the sentence.

2. Which of the following SAP SCM components use transportation lanes?Choose the correct answer(s).□ A Global ATP□ B Supply Network Planning□ C Network Design□ D Demand Planning□ E Production Planning/Detail Scheduling□ F Transportation Planning/Vehicle Scheduling

3. Transportation lanes are considered SAP SCM master data.Determine whether this statement is true or false.□ True□ False

4. Purchasing info records, contracts and out-line agreements can be transferred to SAP SCM as

Fill in the blanks to complete the sentence.

5. External procurement relationships are used in TP/VS.Determine whether this statement is true or false.□ True□ False

6. Name the five ways transportation lanes can be created.



7. Carrier assignments to transportation lanes are required for SNP.Determine whether this statement is true or false.□ True□ False

8. Transportation costs, distances and shipment durations are defined in thetransportation lane using the alsocalled the .Fill in the blanks to complete the sentence.



Answers

1. The object used to connect the various sources and targets of material flowsis the transportation lane.

Answer: transportation , lane.

The transportation lane is vital to the definition of the supply chain networkand its planning functions.

2. Which of the following SAP SCM components use transportation lanes?

Answer: A, B, C, E, F

All components with the exception of Demand Planning, use TransportationLanes

3. Transportation lanes are considered SAP SCM master data.

Answer: True

Transportation lanes are SAP SCM master data. Transportation lanes canbe created manually or through the CIF by transferring Purchasing inforecords or the Special Procurement Key.

4. Purchasing info records, contracts and outline agreements can be transferredto SAP SCM as external procurement relationships

Answer: external , procurement , relationships

This data if supplied is used by the Supply Network Planning component ofSAP SCM.

5. External procurement relationships are used in TP/VS.

Answer: False

External procurement relationships are used only by SNP.



6. Name the five ways transportation lanes can be created.

Answer:

1. Using the transportation lane maintenance screen2. Using the Supply Chain Engineer (SCE).3. Transportation lane mass maintenance.4. Transferring Purchasing Info Records5. Transferring the Special Procurement Key

7. Carrier assignments to transportation lanes are required for SNP.

Answer: False

Carrier/transportation service providers are only used by the TP/VScomponent of SAP SCM.

8. Transportation costs, distances and shipment durations are defined in thetransportation lane using the means of transport also called the transportationmethod.

Answer: means , of , transport, transportation , method

As of SCM 4.0, transportation duration and distance can be created throughthe use of the GIS (Geographic Information System).


Unit 6Work Centers and Resources

Unit OverviewWork centers are the heart and sole of any organization that needs to plan logisticsactivities. Students will determine how and when to model data in SAP R/3, aswell as how the data will be formatted in the SAP SCM Resource. In addition,students will determine what master data is new to S AP SCM and what data willnot be transferred from SAP R/3 to SAP SCM.


� Discuss the concept of work center and a resource� Demonstrate the integration of the two objects via the CIF� Explain the purpose of a Shipment/Transport, Vehicle, Storage and Handling

Resources in SAP SCM.� Create a resources withing SAP SCM that were not transferred through

the CIF.� Create vehicle resources using the copy function within resource master

data maintenance.� Create Capacity Variants in SAP SCM� Describe the different methods of capacity variants in SAP SCM

Unit ContentsLesson: Work Centers and Resources .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .278

Exercise 12: Manufacturing Resources in mySAP SCM... . . . . . . . . . . .297Lesson: SCM Resources .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .310

Exercise 13: Create and Assign Transport/Shipment Resources... .315Exercise 14: Create Handling resources. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .319Exercise 15: Create Vehicle Resources for TP/VS Planning(OPTIONAL: Time Permitting) .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .321

Lesson: Capacity Variants in SAP SCM ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .330Exercise 16: Modeling Capacity Variants in SAP SCM (Optional: TimePermitting) . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .339


Unit 6: Work Centers and Resources SCM215

Lesson: Work Centers and Resources

Lesson OverviewWork centers, resources and production lines serve the same purpose in SAP SCMand ECC . They are used to model available capacity and where work and/oractivities can be recorded and tracked for relevant supply chain activities. Workcenters can be broken down in to two types of data, formulas (costing, capacityrequirements, scheduling), and available capacity. Capacity data can take manyforms; pooled, reference and available capacity specific to a work center. As aresult of this lesson, you will be able to describe the results of the transfer toSAP SCM


� Discuss the concept of work center and a resource� Demonstrate the integration of the two objects via the CIF

Business ExampleYour organization had created work centers in your SAP ECC system forscheduling, capacity planning and costing purposes. You will need some of thismaster data in SAP SCM to plan finite capacity. Map out which data will flowfrom the SAP ECC work center to the SAP SCM resource.

Work Centers an ResourcesA work center is an organizational unit that defines where and when an operation(work) should be carried out. Work centers can be used to model machines, groupsof machines, people, or groups of people. In ECC the work center defines:


SCM215 Lesson: Work Centers and Resources

Figure 85: Work Centers in SAP ECC

� Scheduling: Operating times and formulas are entered in the work center, sothat the duration of an operation can be calculated.

� Costing: Formulas are entered in the work center, so that the costs of anoperation can be calculated. A work center is also assigned to a cost center.

� Capacity planning: The available capacity and formulas for calculatingcapacity requirements are entered in the work center.

In relation to the integration with SAP SCM, only the scheduling and capacityparameters are relevant. Costing still remains important, as SAP ECC will stillbe the system responsible for executing SAP SCM�s manufacturing plan. Thework center will be broken up into two pieces, the resource and the PPM. Allinformation regarding the available capacity in SAP ECC is transferred to the SAPSCM resource, and all formulas related to scheduling and capacity requirementswill be transferred to the PPM which will be material specific. This lesson willfocus on the resource integration. PPM integration will be covered in a later lesson.

Work Center and Resource IntegrationCapacity refers to the ability of a work center to perform a specific task. Youdistinguish between various capacities in a work center, such as labor or machines,by using the capacity category. Capacities can be entered and changed in workcenters, but also maintained independently. The system distinguishes between:

� Work center capacities� Pooled capacities� Reference capacities� Default capacities



These various capacities are described in more detail in the following lessons.

Each work center can have one or more capacity headers to describe any limitto the work it can perform in regards to time. In order for capacity headers tofunction they must be assigned as some time to a work center. The capacity headerwill contain all the necessary information to identify the available capacity fora constraint.

Figure 86: Capacity Header in ECC

Figure 87: Naming Conventions of SAP SCM Resources



In regards to SAP SCM, each capacity header, will be created as a resource.During the transfer of a routing the resource, will be included in the productionprocess model (PPM). When discussing the integration with SAP SCM the workcenter is rather unique. The standard values and formulas relating to schedulingwill integrated with the SAP SCM PPM. The PPM and scheduling elements of thework center will be discussed in another unit. Thus the only remaining section ofthe work center is capacity planning. The capacity header(s) of the work centerwill transfer through the CIF and generate resources in SAP SCM.

The resource name in SAP SCM is made up of Four parts:

� AW is placed at the front of the resource if it is a work center specificcapacity.

� Work center name� Plant� Capacity category

The common bond between the resource and the capacity header is that fact thatboth are used to describe only what capacity is available for that work center.

Pooled Capacities in SAP ECCCapacities are differentiated according to capacity category. They are arrangedhierarchically under a work center. Capacity can be specific to a given workcenter, it can represent a group of people or machines, or it can be used as masterdata for many work centers.

Figure 88: Pooled Resources



A pooled capacity is used to model manufacturing resources that will be shared bymany work centers. For modeling purposes this only makes sense, if the pool ofresources is actually a capacity constraint. Example, you have 5 production linesthat each require an operator for the entire duration that machine runs. However,you only have 4 operators in you resource pool. Therefore, only 4 machines canrun at any one time.

The capacity data that goes from the SAP ECC System to the SAP SCM resource,is automatically transferred during integration, without separate transportationor specific maintenance of this data in the SAP ECC System being carried out.The work center capacity in the SAP ECC System does not have its own namesince it is assigned to a work center.

When transferring the routing through the CIF, the pooled capacity will beassigned as either a primary or secondary resource in the PPM. By its definition,pooled resources should become either Multi or Multi/Mixed resources. Thedefinition of the pooled resource is that there is more than one resource to choosefrom, but the situation does not warrant each person or machine being modeled asa separate capacity. Therefore the pooled resource is not a scheduling resource,but a constraining resource to a person or machine. Multi Mixed resources willbe discussed in another lesson.

Reference capacitiesOften times in repetitive, high speed, manufacturing environments, companiessetup similar manufacturing activities into manufacturing areas, or departments.Often times, these departments operate at the same starting and finishing times. Inorder to properly schedule any logistics activities, users must create and maintainthe necessary capacity data. However, if the data that is used to model certainresources is identical, then methods to ease data maintenance should be used.



Figure 89: Reference Resource

To ensure proper scheduling, each work center in SAP ECC is typically maintainedwith its available capacity to know when the work center is open and closed forbusiness. By creating reference capacities, users can maintain one set of capacitiesthat applies to several work centers independently by linking the capacity data toeach relevant work center. When it is necessary to update the capacity, the planneronly needs to maintain the reference resource. The information is relevant for allresources that have been linked by the reference function.

The first step to creating a reference resource is to create the capacity header.The capacity header for the reference capacity is no different then a work centercapacity header. Unlike the pooled capacity, there is no field to indicate that ithas a special function.

Once a capacity header has been created, users must reference it to the samecapacity category in the work centers. In the details of the capacity header followthe menu path Extras→ Reference avail. cap . This must be done to every workcenter that will use the capacity header as reference data.

Reference Resources in SAP SCMWhen a work center with a reference capacity is transferred to SAP ECC , thereference capacity is automatically included in the integration model. When thereference resource is transferred to SAP SCM via the CIF an independent resourceis created in SAP SCM. In addition, all work centers that used this referencecapacity, are linked to the new reference resource via the reference resource field.



Resources in mySAP SCM

Figure 90: Resource Categories

In the SAP SCM resource the Resource category: is entered as P = Productionas result of the transfer from the ECC System. This is a required entry, and ispopulated during the transfer through the CIF with P, and cannot be changed.

SAP SCM has several resource categories production (P), transportation (T),storage (S), handling unit (H). Resource categories and capacity categories servethe same purpose but are not directly related. In SAP SCM, resources otherthan production can only be created manually to support SAP SCM specificfunctionality (discussed in later lesson).

� Single-activity resources (PP/DS)� Single Mixed resources (PP/DS and SNP)� Multi-activity resources (PP/DS)� Multi-Mixed resources� Production Line (PP/DS - Discrete Solution)� Production Line-Mixed (PP/Ds and SNP Discrete Solution)� Bucket resources (SNP only)� Vehicle resources (TP/VS)� Transportation (4.0)/Shipment (3.1) - SNP only)� Calendar resources (PP/DS)� Calendar Mixed resources (PP/DS and SNP)



Single/Multi-Activity resourcesResources that can be used for continual and exact time scheduling (e.g tothe second). Therefore, in PP/DS you use either single-activity resources ormulti-activity resources, for which you can define working times and breaksand which you can schedule to the second. Only one activity can be carriedout at a time on a single-activity resource (capacity 1). Several activities canbe carried out at the same time on a multi-activity resource. These types ofproduction resources can be transferred from SAP ECC .

Mixed resourcesResource that can be used by both PP/DS and SNP. The capacity data foreach resource will bet stored both in Daily buckets so that it can be usedby SNP In addition capacity will be store for PP/DS down to the secondand allow planners to define the capacity in shifts as well. These can betransferred from SAP ECC .

Bucket Resources

� Quantity (without reference to a period of time) For example, youcan use a quantity to define the transport capacity of a truck or thecapacity of a warehouse.

� Rate (quantity with reference to a period of time) You use a rate todescribe the consumption or production capacity of a resource, forinstance the quantity that is consumed or produced by a resourcein a workday.

Line ResourcesResource type that is specially designed for the requirements of takt-basedscheduling. The line resource determines the working times and the ratesof the line. A line resource is generated in SAP SCM for each line youcreate in the DI system.

Vehicle ResourceResource that represents a separate resource type and is used inTransportation Planning/Vehicle Scheduling (TP/VS). The vehicle resourcehas the following features

� The vehicle resource can have several dimensions.� You assign a means of transport to the vehicle resource. You cannot

define the available capacity for this resource type dependent on time.� However, you can define a time-dependent availability using shift

sequences.



Transportation ResourcesThis resource used in Supply Network Planning that is identical to thebucket resource. It has its own resource type in SAP liveCache. Use Thetransportation resource is used in the same way as the bucket resource. Itdiffers from the bucket resource in the scheduling of requirements on theresource.

Calendar ResourcesResource whose capacity is not utilized during scheduling. The system onlytakes the calendar of the resource into consideration during scheduling. Incontrast to single resources, the following constraints exist for calendarresources and calendar mixed resources:

� Since there is no capacity load for the calendar resource, it is notdisplayed in the Detailed Scheduling planning board.

� The capacity of a calendar resource is not taken into considerationduring scheduling of activities, so it cannot be scheduled finitely.

� You cannot define a capacity profile for a calendar resource. You canalso specify downtimes for calendar resources.

� No setup time adjustment can be executed on a calendar resource.In the following cases, you define a resource as a calendar resource:

� You only want to take the resource calendar into consideration.� There are a lot of activities on the resource simultaneously; for

example, on a handling resource for scheduling the goods receiptprocessing time. If you use another resource type, the system has totake the capacity into account when scheduling these activities, whichmay lead to performance problems.

As of PI2003.1 and SCM 4.0, changes were made to the way some of the masterdata objects could be interfaced. Prior to this upgrade, companies who wantedSAP ECC to create �mixed�resources in SAP SCM had to use a user exit



Integration Settings

Figure 91: New Resource Integration Settings (CFC9)

With this new functionality companies will be able to control how the initialtransfer and change transfer of the resources are handled. This replaces thatcustomer exit that was required before. Prior to PI2003.1 and SCM 4.0 alltransfers were handled through a periodic update or users maintained the datasolely in SAP SCM after the initial transfer. In transaction CFC9 there is aselection that users can now make to handle the changes transfer immediatelythrough a business transaction event (BTE -online transfer). In addition during theinitial transfer companies can decide what type of resource the existing SAP ECCwork centers/resources will be transferred to SAP SCM as:

� 01 - Mulit-activity Resource� 02 - Single-Activity Resource� 04 - Single Mixed Resource� 05 - Mulit mixed Resource� 06 - Single Line Resource� 07 - Single Mixed Line Resource� 10 - Calendar Resource� 11 - Calendar Mixed Resource

This setting affects all resources, regardless of the target system. However, thesesettings can be defined separately for single and multi activity resources.



When users set up the change transfers process they have the opportunity todecide exactly how the resource will affect the version dependent and independentresources. You can choose for which resources the change transfer from SAP ECCto SAP SCM should be activated or changed. You have the following options:

� No change transfer (updates in SAP ECC do not transfer)� Change transfer only for the planning-version-independent resource.� Change transfer for the planning-version-independent resource and for the

planning-version-specific copy of this resource that is assigned to planningversion 000. (Any new versions created will get the updated capacity.)

� Change transfer for the planning-version-independent resource and for allplanning-version-specific copies of this resource that are assigned to aplanning version of model 000.

Another new feature with PI2003.1 and SCM 4.0 is the use of ExternalCapacities. If you use SAP SCM with SAP ECC (or another external OLTPsystem), SAP SCM can directly use the data defined in the external system tocalculate the available time-continuous capacity of single, multi, line, and calendarresources as well as the relevant mixed types. If you assign this external capacityto the resource, the system does not take any further settings in SAP SCM intoconsideration that affect the capacity when determining the valid capacity, exceptfor downtimes and the variances defined in the capacity profile.

The capacity can only be specified in SAP ECC without a dimension, so theexternal capacity of multi-activity resources is also always without a dimension.In the case of mixed resources, the system generates the bucket share of thecapacity from the external capacity, if you specify for the resource that the bucketcapacity is generated from the time-continuous capacity. Using the externalcapacity setting in transaction CFC9, companies can define the following options:

� Whether the capacity is not, in general, determined in SAP ECC� Whether the capacity for all resources that have been transferred from this

SAP ECC system is determined externally in SAP ECC� Whether the capacity is only determined externally for the resources in

SAP SCM for which you have defined this explicitly in the master data inSAP SCM

If you choose to use SAP ECC as the master for capacity your company can alsospecify for how many days in the past the external capacity is generated in SAPECC . Enter at least as many days as you have specified in resource master data inSAP SCM for the validity of the available capacity. If you do not specify a value,the external capacity is generated for 30 days in the past and 600 days in the future.



Figure 92: External Capacities in SAP SCM

In SCM 4.0 a new tab has been added to the resource master called ExternalCapacity. If you have transferred the resource from a connected SAP ECC systemthrough the CIF or from another system, you can use this indicator to define thatthe data that the system uses to determine the capacity of the resource (shiftdefinitions, shift programs and break models) is read directly from this system.The CIF does not support any change transfer for shifts, shift programs andbreaks. If you want to manage these settings in SAP ECC (or in another systemconnected using BAPIs), specify at the resource in SAP SCM that the capacity isto be determined based on the external data in this system.

Note: If you have set this indicator, the system does not take the shifts,shift programs and breaks from the SAP SCM system into consideration.The bucket share of the capacity of a mixed resource can only bedetermined from the external system if you have defined that the bucketcapacity should be determined from the time-continuous capacity.

SAP SCM Specific fieldsIn order to support new planning functionality for SAP customers, the newlycreated resources in SAP SCM may need to be appended due to additional fieldsto support the new functionality.

Setup MatrixThe setup matrix with which the system determines the setup duration andsetup costs for setup activities that depend on the sequence. The setup matrixis new SAP SCM Master Data.



Time BufferIn this field you define the duration of the time buffer of the resource. Youuse the time buffer in Production Planning and Detailed Scheduling as asafety time, in order to protect the resource or the activities, which areprocessed on the resource, from unforeseen delays in material staging.

Bottleneck resourceSpecifies that the resource is a bottleneck resource. In the detailedscheduling planning board, bottleneck resources can be displayed differentlyto non-bottleneck resources. In the Production Planning and DetailedScheduling optimization, you can carry out a campaign optimization forbottleneck resources.

Finiteness LevelIf the resource is used by several applications, you can use the finitenesslevel to define which application schedules the resource finitely and whichschedules infinitely.The finiteness levels must be created in SAP SCM customizing for resources.These levels can then be used and set in the various individual applications(Example: Strategy profile)

Campaign-relevantYou use this indicator to specify that the following requirements should bechecked for the resource: The production campaign running on this resourcemust be uninterrupted, that is, the orders from a campaign must not beinterrupted by an order that does not belong to the campaign. The setup orderfor this resource must be at the beginning of the campaign, and the clean-outorder must be at the end of the campaign.If a resource is campaign-relevant, it cannot be used as a secondary resourcein a production process model (PPM).

Maximum OverlapOperations can overlap at a resource leading to a resource overload. In thisfield, you enter how long a resource overload may exist before the systeminterprets this as a resource overload and triggers an Alert.



Days + / -Specifies for which time period (in days) the capacity of the resource isvalid, starting from today�s date and going into the future and past. Youshould define the time period relevant for scheduling a resource to be asshort as the planning considerations allow. By doing so, you avoid usingtoo much memory in the liveCache. See Note 550330 (extending the timestream in the liveCache.As of SAP SCM 4.0 a new report is available to delete capacitythat is no longer relevent for planning and to extend the availablecapacity into the future, without the resource having to be savedagain. This report can be scheduled as a background job. Report:/SAPAPO/CRES_CAPACITY_LENGTHEN.

Storage CharacteristicsIndicator that assigns not only production capacity but also storage capacityto a resource. When the indicator is set, the resource can contain products.Once selected, this indicator activates the Storage characteristics tab pagefor maintaining the relevant data.

Minimum Production QuantityThe minimum quantity that has to be filled into the resource in order forthe resource to be used for production. Example, you want to producesomething in a mixing tank. If one or more synchronized activities are usedfor production at this resource, the minimum production quantity must bein the tank. This is important, for example, in the case of resources with amixer, where the mixer blades must be within the product mixture.

Maximum Stock LevelMaximum product quantity that can be at the resource.



Set Remaining Fill Levels to ZeroHandling the Remaining Fill Level. This indicator controls the calculationand display of the fill level for the container resource . The decisive factoris whether or not the principle of product purity is to be followed. Productpurity means that a container must not contain a mixture of differentproducts. This indicator does not affect inventory management or pegging. Ifthe indicator is not set, product purity is not taken into account. The systemcalculates the container resource�s fill level from all material issues andreceipts, irrespective of product purity. If product purity is violated, however,the system issues the Invalid mix alert. If the indicator is set, product puritymust be taken into account.The fill level is represented as follows: If a new product that differs fromthe product still remaining in the container is filled into the container, thecontainer resource�s fill level is automatically set to zero. To inform theplanner about the fact that there is still something left of another product inthe container, the system issues the Quantity set to 0 alert. If a differentproduct than the one in the container is to be discharged, however, the filllevel is not set to zero. This means that product purity is not taken intoaccount for material issues.

Manufacturing Resources in SAP SCMSingle resources and multi-resources are transferred from the SAP R3 System.All other resource types in SAP SCM are resources belonging to SAP SCM.Multi-resources in SAP SCM correspond to capacities in the SAP R3 Systemthat can incorporate several individual capacities. Single resources in SAP SCMcorrespond to capacities that display only one individual capacity respectively.

Figure 93: Multi-Activity Resources



During the transfer to SAP SCM, the CIF will use the number of availablecapacities in the details of the capacity header to identify whether the work centeris a single activity or multi activity resource. If the number of individual capacitiesis one and the �can be used by several operations�indicator is not set, then a singleactivity resource is created.

By its definition the single activity resource can only process one operation orjob at a time.

Caution: Single and Multi Activity resources can only be used inProduction Planning/Detailed Scheduling (PP/DS).

Mixed ResourcesFor most organizations, some type of mid to long range planning is done severaltimes a year if not constantly. During the transfer of work centers through theCIF, only PP/DS resources are created. This means that none of the work centersfrom SAP R3 can be used for Supply Network Planning (SNP). In order for SNPto use the detailed capacity data from SAP R3 and PP/DS, users will have theopportunity to create aMixed resource that can be used by both SNP and PP/DS.In order to do this, the appropriate settings must be made in CIF TransactionCode CFC9. As shown earlier in the Work Center and Resources Lesson. Prior toSAP SCM 4.0 a user exit (see Note: 329733) must be utilized to create �mixed�resources through the CIF.

Caution: If using the user exit to create mixed resources, one mustalso implement user exits for objects like the PPM that use the mixedresources. See Note 321474

Bucket Definition (SNP)The single mixed resource has a bucket capacity with the dimension�time� which is calculated by multiplying the working time of the singleactivity resource by a loss factor. With a single mixed resource, users canspecify where to get the available capacity of the work center: 1) from thedetailed capacity of PP/DS (continuous) standard/variant, 2) Maintain thecapacity independent of other data, 3) From Block planning. (used withCharacteristics dependent planning (CDP).

Loss Factor (SNP)Indicates the reduction in the capacity of the bucket resource for single-mixedresources and multi-mixed resources. Use Single-activity resources andmulti-activity resources can be planned to the very second. They are usedto allocate capacity via activities such as setup and tear-down. In order toachieve the same allocation in single or multi-activity resources and bucketresources, you can adjust capacities using the loss factor.



Period Lot Size (SNP)If you set this indicator, the SNP optimizer is able to execute cross-period lotsize planning . During this planning, the SNP optimizer takes into accountthe setup statuses from the previous time bucket, if the same productionprocess model (PPM) is used to produce a product. This means that theoptimizer only schedules one setup operation, where it would typicallycalculate two (one for each order). The system then calculates the setupcosts and setup consumptions (fixed resource and material consumptions)that were defined in the PPM for a resource for which the Period Lot Sizeindicator has been set.

Cross-Period ActivitySpecifies that an activity may start in one period and end in another (notnecessarily in the next period). A period is currently one day.

Schedule on GridIdentifies that activity must start at the beginning of a bucket

Overload %Defines by how much (in percent) the resource load may exceed the capacityof the resource, without the system interpreting this situation as a resourceoverload and triggering Alerts. You use this field to control whether an Alertis triggered for a resource overload

Min. Load %The value defined here represents the minimum load (in percentage)defined for the resource capacity. A load below this percentage representsan under-load situation. You use this field to control whether an Alert istriggered for a resource that is under utilized

Not SNP RelevantWhen selected, the resource will not be included in the generation of an SNPPPM, when using a PP/DS PPM as a template.

Multi Activity ResourcesBoth Multi activity resources have field call SyncStart. This is use for thesynchronization of activities when overlapping occurs for activities on a mixedresource. This field defines whether the system synchronizes the start timesof activities on multi-mixed resources and multi-activity resources when theseactivities have the same duration and a further identical characteristic.



Figure 94: Synchronization on Multi-Activity Resources

When synchronizing, the system schedules the new activity either at the same starttime as an activity with the same duration and characteristic (which has alreadybeen scheduled) or, without overlap, before or afterwards. By synchronizing,you can create blocks of activities at the multi-resources that can be processedsimultaneously because they have the same duration and characteristic. Youspecify the value of the characteristic by using a setup group or a setup key thatyou assign to the operation in the production process model. If the desired startor finish time of an activity falls between the start and finish time of an activitythat has already been scheduled with the same characteristic and duration (thatis, an overlap has occurred) the system schedules the activity on the same starttime as the activity already scheduled, if there is sufficient capacity. If there isnot enough capacity at this time, the system schedules the activity before thescheduled activity (scheduling direction backwards) or after the scheduled activity(scheduling direction forwards) without overlap. The system always schedulesactivities with different durations and characteristics without overlaps.

If you select No synchronization, the system schedules activities on multi-resourceswith overlaps. The system only executes synchronization for multi-resources thatyou only use as primary resources in the modes of production process models.Example Synchronization can be used to model the loading of an oven. Becausethe oven can only be loaded or unloaded all at once, you must ensure that it isfilled to full capacity with products that require the same temperature and duration.Therefore you can only schedule activities for the oven that have the samedurations and require the same temperature. Tempering activities with a differentduration or temperature can only be loaded into the oven without overlap eitherbefore or afterwards. You can model different temperatures using different setupkeys that you assign to the operations, and hence to the activities of the operation.

Note: The setup key and setup group are used differently formulti-resources than for single resources: For single resources, the setupkey or setup group classifies the setup status of a primary resource thatis required for processing an operation. The setup status of a resource isevaluated by the system during the setup time adjustment or in setup timeoptimization based on the setup matrix. For multi-resources, the setup keyor setup group represents a characteristic of an operation that you wishto use for the synchronization of activities on a primary resource (forexample, a certain temperature).



Caution: One of the draw backs of using multi mixed resources is theinability to use setup time optimization. Since the system can not planeach line individually, it is not possible for the system to identify the exactsequence of how the activities will be executed.



Exercise 12: Manufacturing Resources inmySAP SCM

Exercise ObjectivesAfter completing this exercise, you will be able to:� Display simple work centers in ECC� Display capacity data relevant to scheduling you machines.� Transfer work centers to SAP SCM and interpret the results.

Business ExampleThe liquid detergent your company manufactures can be filled in filling workcenters Fill-1##, Fill-2##, Fill-3## and Fill-4##. The first three are state of theart high speed lines that will be used very frequently therefore they will bemodelled independently. They also have the same available capacity and capacityconsumption. You expect to produce a large volume. In addition, other materialsrun on these lines. Therefore, you need to ensure you organize the data so SAPSCM has the flexibility to schedule efficiently with little or no manual intervention.

The forth work center; Fill-4##, consists of four older lines that use slower fillingtechnology. These will not be used as frequently and therefore will be modelledas one resource.

Task 1: Pooled Capacity in mySAP SCMYour line operators work in two shifts 5 days a week, in eight hour shifts. Theshifts start at 7 a.m. and 3 p.m. Each operator can only operate one machine atone time. You are staffed with 7 operators, however, only six will run these fillinglines at time, the seventh operator will work as a relief operator to provide breaksto the line operators.

1. Display the pooled capacity OP - ##, that will represent your labor forcethat is responsible for running the filling lines in plant 3100, based on thefigures above.

Task 2: Reference ResourcesYour high speed filling lines are available 24 hours a day, 5 days a week. Eachline is available 95 percent of the time, due to preventive maintenance that isavailable. We will a

1. Display the machine capacity, HSF - ##, High Speed Filling Lines, thatwill reflect the master data above, and model you high speed filling linemaster data.




Task 3: Display work centersTo properly plan your production you must model your manufacturingenvironment. Display the work centers to support the filling of your ZAP-1##liquid detergent.

1. Work Centers Fill-1##, Fill-2##, Fill-3## and Fill-4## have been modeledfor the filling of liquid laundry detergent. Display work center that you willbe responsible for , Fill-1##, GR## HSF Line 1, at plant 3100.

This machine runs 16 hours a day, from 7 a.m. to 11 p.m. at night. There is arelief operator available to provide breaks to the operators when necessary.The machine can only handle filling on product at a time, and uses a 5 daycalendar for the US. In addition this line must be staffed by an operator fromthe work center group,OP-##. The scheduling and capacity requirementswill be calculated using keys SAP005 and SAP007.

Task 4: Integration of Resources with SAP SCMWith the resources now created in ECC we must transfer them to SAP SCM inorder to begin building our supply chain within SAP SCM.

1. Create an integration model to transfer your resources for which your newplanner is responsible (in SAP SCM) in plants 3100. Use the following Datato classify your integration model

Field Data

Model Name Group-##


APO Application Work Cntr

Note: Only when the generated message appears have yousuccessfully generated and integration model:

2. Upon exiting the transaction you will be asked to save as a variant. Due tothe frequency in which material masters are created we will create a variantfor this integration model. Later in the course we will use this concept topass changes to other master data that updates occur frequently. Createvariant GEN##-WC, Generate GR ## Work Centers

3. Activate your integration model to transfer your new Resources to SAP SCM.

Note: If the activation/transfer is successful you will see thefollowing message:




Task 5: Resources in SAP SCMNow that your resources have been transferred, you need to review the informationand see how the information is presented in the SAP SCM Resource

1. How Many resources were transferred during the last activation of yourintegration model?Choose the correct answer(s).□ A 2□ B 3□ C 4□ D 6

2. Pull up your resources that were transferred through the CIF.

3. What are the names of your new resources?

No. Resource Name Type Comments1

2

3

4

5

6




4. Update all six of your resources to reflect your APO Planner number 2##.Also update the pooled resource OP-## so that the available capacity of theresource will be maintained by an external system.

5. The finite scheduling indicator was set on your high speed filling lines basedon the ECC setting, "Finite Scheduling".Determine whether this statement is true or false.□ True□ False

Task 6: External Capacities - ECC to SAP SCMMaintenance of pooled capacity OP-## and the reference resource HSF-## shouldbe done in the ECC system since this is our transactional system where productionsupervisors responsible for capacity levels are accustomed to. These changesshould be immediately visable to the planner in SAP SCM.

1. Increase the number of people available in the capacity pool to 8.

2. Review the resource in SAP SCM.

3. Why has this capacity immediately changed in SAP SCM?



Solution 12: Manufacturing Resources inmySAP SCMTask 1: Pooled Capacity in mySAP SCMYour line operators work in two shifts 5 days a week, in eight hour shifts. Theshifts start at 7 a.m. and 3 p.m. Each operator can only operate one machine atone time. You are staffed with 7 operators, however, only six will run these fillinglines at time, the seventh operator will work as a relief operator to provide breaksto the line operators.

1. Display the pooled capacity OP - ##, that will represent your labor forcethat is responsible for running the filling lines in plant 3100, based on thefigures above.

a) Menu Path: Logistics→ Production→ Master Data→ Work Centers→ Capacity→ Display

b) Enter the following Data

Field Name: Data:Plant 3100

Capacity OP - ##

Capacity Category 002 - Labor

Select Header data (enter) and verify the data from the table below:

Field Data: Name:Description GR ## Filler Operators

Capacity Planner grp 2##

Pooled capacity Select

Grouping 99 - APO

Factory Calendar ID US

Active Version 01 - Normal AvailCapacity

Base unit of meas. H - Hour

Start 07:00:00

Finish 15:00:00

Length of breaks 00:00:00




Field Data: Name:Capacity Utilization 100

No. of indiv. cap 6

Relevant to finite sched. Select

Can be used by several operations Select

Back out the the main menu.

Task 2: Reference ResourcesYour high speed filling lines are available 24 hours a day, 5 days a week. Eachline is available 95 percent of the time, due to preventive maintenance that isavailable. We will a

1. Display the machine capacity, HSF - ##, High Speed Filling Lines, thatwill reflect the master data above, and model you high speed filling linemaster data.

a) Menu PathLogistics→ Production→ Master Data→ Work Centers→ Capacity→ Display

b) Enter the following data:

Field Name DataPlant 3100

Capacity HSF - ##

Capacity Category 001 - Machine

Select Header data (enter)

c) Verify the following data in the capacity header:

Field Name: Data:Capacity Description High Speed Filling

Capacity planner grp 2##

Pooled capacity deselect

Grouping 99 - APO

Factory calendar ID US

Active version 01 - Normal Capacity

Base unit of meas. H - Hours




Field Name: Data:Start 00:00:00

Finish 24:00:00

Length of breaksCapacity Utilization 95

No. indiv. cap. 1

Relevant to finite scheduling Select

Can be used by several operations Deselect

Back out to the menu.

Task 3: Display work centersTo properly plan your production you must model your manufacturingenvironment. Display the work centers to support the filling of your ZAP-1##liquid detergent.

1. Work Centers Fill-1##, Fill-2##, Fill-3## and Fill-4## have been modeledfor the filling of liquid laundry detergent. Display work center that you willbe responsible for , Fill-1##, GR## HSF Line 1, at plant 3100.

This machine runs 16 hours a day, from 7 a.m. to 11 p.m. at night. There is arelief operator available to provide breaks to the operators when necessary.The machine can only handle filling on product at a time, and uses a 5 day




calendar for the US. In addition this line must be staffed by an operator fromthe work center group,OP-##. The scheduling and capacity requirementswill be calculated using keys SAP005 and SAP007.

a) ECC Menu path:Logistics→ Production→ Master Data→ WorkCenters→ Work Center→ Display


Field name DataPlant 3100

Work Center Fill-1##

Press ENTER

c) On the capacities tab double click on the capacity category 001, andreview the following data:

Field Name DataStart 00:00:00

Finish 24:00:00

Length of breaks 00:00:00

Capacity utilization 95

No. of indiv. cap. 1

This data was derived from the reference capacity.

Hint: From within the capacity header; the capacity beingreferenced can be displayed using the menu path: Extras→Reference avail cap

d) Choose Back to return to the capacity tab and back out to the menu.

Task 4: Integration of Resources with SAP SCMWith the resources now created in ECC we must transfer them to SAP SCM inorder to begin building our supply chain within SAP SCM.

1. Create an integration model to transfer your resources for which your newplanner is responsible (in SAP SCM) in plants 3100. Use the following Datato classify your integration model




Field Data

Model Name Group-##


APO Application Work Cntr

Note: Only when the generated message appears have yousuccessfully generated and integration model:


b) In the section marked �Material Independent Objects�Select the check

boxWork Centers, and select Special Restrictions .

c) In the section marked �Resources�Enter the following:

Field Name Data:Work Center Fill-*##

d) Select Execute

e) Answer NO if asked to change selections

f) In the filter object section place your cursor on Capacity, and choose

Detail View

g) Select Selections

h) Select Save to Generate the integration model

i) Select Back .


2. Upon exiting the transaction you will be asked to save as a variant. Due tothe frequency in which material masters are created we will create a variantfor this integration model. Later in the course we will use this concept topass changes to other master data that updates occur frequently. Createvariant GEN##-WC, Generate GR ## Work Centers

a) Select Save as Variant and enter the information above.

b) SelectSave Save




3. Activate your integration model to transfer your new Resources to SAP SCM.


a) SelectExecute

b) Select the integration model that contains your new materials

Hint: Look in the APO Application forWork_Cntr.

c) Select the line with the date and time stamp and select Details

view

d) Double click on the line labeled Capacity

e) Use the Back to return to the activation/deactivation screen.

f) Select the line with the date/time stamp and select Set to active/inactive

g) Select Start Activation

Task 5: Resources in SAP SCMNow that your resources have been transferred, you need to review the informationand see how the information is presented in the SAP SCM Resource

1. How Many resources were transferred during the last activation of yourintegration model?

Answer: D

A total of six should have been transferred: Fill-1## Fill-2## Fill-3##Fill-4## OP-## (pooled)and HSF-## (reference)

2. Pull up your resources that were transferred through the CIF.

a) SCM Menu Path: Advanced Planning and optimization→ MasterData→ Resource

b) Enter *##* location 3100 and select Change

3. What are the names of your new resources?




No. Resource Name Type Comments1 WFILL-

1##_3100_001P

2 WFILL-2##_3100_001

P

3 WFILL-3##_3100_001

P

4 WFILL-4##_3100)_001

P

5 OP-##_3100_002 P Pooled Resource6 HSF-##_3100_001 P Reference Resource

4. Update all six of your resources to reflect your APO Planner number 2##.Also update the pooled resource OP-## so that the available capacity of theresource will be maintained by an external system.

a) Enter in the field planner 2##.

b) In the pooled resource only OP-## goto the External Capacity tab andselect the check box for external capacities.

c) Select Save

5. The finite scheduling indicator was set on your high speed filling lines basedon the ECC setting, "Finite Scheduling".

Answer: True

These fields are synchronized via the CIF.




Task 6: External Capacities - ECC to SAP SCMMaintenance of pooled capacity OP-## and the reference resource HSF-## shouldbe done in the ECC system since this is our transactional system where productionsupervisors responsible for capacity levels are accustomed to. These changesshould be immediately visable to the planner in SAP SCM.

1. Increase the number of people available in the capacity pool to 8.

a) On the ECC side change the pooled capacity OP-##.

Logistics→Production→Master Data→Work Centers→Capac-ity→Change


Plant 3100Capacity OP-##Capacity Category 002

c) Change the No. of indiv. cap. to 8 and Save.

2. Review the resource in SAP SCM.

a) Access the resource in SAP SCM.

SCM menu path: Advanced Planning and optimization→ MasterData→Resource

b) Enter resource OP-## and select

c) Select the Standard Capacity tab and review the change Capacity.

3. Why has this capacity immediately changed in SAP SCM?

Answer: The settings have been made in the CIF CFC9.Immediate transfer Selected.Use Ext. Capacity =X (External capacity set for each resource)Change Transf. Mode = A



Lesson Summary

You should now be able to:� Discuss the concept of work center and a resource� Demonstrate the integration of the two objects via the CIF



Lesson: SCM Resources

Lesson OverviewIn this lesson you will learn about alternative types of resources that may be usedin the SAP SCM planning process within your supply chain. These types ofresources are used to represent various capacities in the supply chain other thanthe production resources that were discussed in a previous lesson. The specificresources we will discuss are: Shipment/Transport, Vehicle, Storage and Handling.


� Explain the purpose of a Shipment/Transport, Vehicle, Storage and HandlingResources in SAP SCM.

� Create a resources withing SAP SCM that were not transferred throughthe CIF.

� Create vehicle resources using the copy function within resource masterdata maintenance.

Business ExampleYou are going to use the SNP component of SAP SCM to plan the optimummid to long-term movements of raw materials and finished goods between thesuppliers, plants and customers in your supply chain. To factor in the capacitiesof the shipment/transport resources to be used in SNP planning you will need toestablish transport resources in SAP SCM master data. For short-term planningusing TP/VS you will create vehicle resources that will be assigned during theTP/VS vehicle scheduling optimization process. Handling and storage resourcescan be assigned to a specific location.


SCM215 Lesson: SCM Resources

SAP SCM Resources

Figure 95: Resource Categories

In general, resources are defined to represent production, storage, handling ortransportation capabilities. As demonstrated in previous lessons; the productionresources may be transferred from SAP ECC . In this lesson we will focus on theresources used strictly in SAP SCM. A capacity is defined for each resource. Thestandard capacity is the simplest available capacity of a resource. For a transport,also called a shipment resource, the capacity could represent the maximum weightor volume the resource could carry. In addition to the capacity representation,a resource has planning parameters to control the scheduling of the activitiesrelated to the resource.

These other types of resources must be created in SAP SCM master data. Theyare not copied from an OLTP or SAP ECC system. The resources created in SAPSCM master data independent of a specific supply chain model. You assign allplanning-relevant transportation resources to supply chain models using theSupply Chain Engineer. If you create a planning version for a supply chain model,the system creates a planning version-specific copy for each resource that youassigned to the model.



Figure 96: Resource Types

Resources can be defined as single- or multi-activity resources or bucket resources.Shipment/Transport resources are bucket resources. Bucket resources in SupplyNetwork Planning have a quantity-oriented capacity that you can plan on a dailybasis (these are periods or "buckets"). The shortest time period that can be usedfor a bucket resource in SNP is a day. You can define the capacity of a bucketresource as a Quantity (without reference to a period of time) For example, youcan use a quantity to define the transport capacity of a truck. Or, you can use arate (quantity per period). You use a rate to describe the capacity of a resource perunit of time; for instance, the maximum weight that can be carried per workday bya transport resource. Unlike vehicle resources used in TP/VS, shipment/transportbucket resources can have only one dimension to define their capacity such asweight, volume or time.

Transport ResourceTransport resources are assigned to the Transportation Mode in theTransportation Lane. They are used by SNP and CTM. Transport resourcesare defined as either bucket resources or transportation resources.

Handling ResourceHandling Resources are assigned to a location in the Location Master tomodel the capacity requirements necessary for material handling. Theresources may be assigned as handling either Inbound or Outbound (or both).For example: it may be required to model the forklift resources. Handlingresources can be defined as single- or multi- activity resources or bucketresources.For planning purposes the required times can then be entered on thetransportation lane in the product section.

Storage ResourceStorage Resources are assigned to a location in the Location Master to modelthe capacity requirements necessary for material storage. Storage resourcescan be defined as single- or multi- activity resources or bucket resources.



Vehicle ResourceA Vehicle Resource represents a separate resource type and is used only inTransportation Planning/Vehicle Scheduling (TP/VS). Each vehicle resourcedefined in SAP SCM master data represents a �unit load�, e.g. one trailer ofa certain capacity, one container of a certain capacity, one rail car of a certaincapacity. In TP/VS planning, an specific vehicle resource is assigned to eachplanned shipment by the optimizer. The vehicle resource is committed to thatshipment for the duration of the shipment process and cannot be assignedto another shipment during this period. Therefore, you must make sure thatenough vehicle resources are created and available for TP/VS planning forthe projected number of shipments that might be created over a period oftime. There is a mass creation function to make the creation of multiplevehicle resources quick and easy.The vehicle resource is a multi-dimensional resource. That is, it can have�n� dimensions. For example, the capacity of a trailer can be specified as40,000 LBS or 2200 cu. ft. or 24 pallets. However, the available capacityfor this resource type cannot be maintained on a time-dependent basis. Ifyou do need to maintain limited availability, however, you can do so bymeans of shift sequences.

Note: Handling and Transport Resources are required to modelSubcontracting w/source location. Handling resource is required at thereceiving location. Transport resource is required on the transportationlane from the vendor to the receiving location. This will be discussed inmore detail in the Subcontract Unit.

Figure 97: Resource Master Data

Various planning parameters can be specified for a these SAP SCM resources.Listed in the following table are relevant planning parameters.



Figure 98: Vehicle Resource Maintenance

PlanningParameters

Use to Define...

Overload (in %) by how many percent the resource load can exceed theresource capacity. The system interprets any capacityload above this percentage as a capacity overload andgenerates an alert if necessary.

Minimum load (%) represents the minimum load (in percentage) definedfor the resource capacity. A load below this percentagerepresents an underload situation.

Finite scheduling whether the system must take the existing capacity loadof the resource into account.

Bottleneck resource whether the resource is a bottleneck.Schedule on bucketsprfl.

whether activities must begin at the start of a bucket.

Days -/ Days + the validity period (in days) of the resource capacity(backwards, from the current data)

Not SNP-relevent Determines if a resource is relevent to SNPCross-period Activity Specifies that an activity may start in one period and

end in another (not necessarily in the next period).



Exercise 13: Create and AssignTransport/Shipment Resources

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a transport/Shipment resource to be used in the SNP optimization

process.� Assign the transport resource to a transportation method in a transportation

lane.

Business ExampleYou will be using SNP planning to plan the mid-to-long term supply chainrequirements for your enterprise, as well as the TP/VS component to plan theshort-to-mid term transportation requirements. In these planning components youneed to define the resources that determine the capacity constraints of varioustransportation methods.

Task:Go to APO Master Data resource maintenance and set up a transport/shipmentresource to be assigned to transportation methods within your transportation lanes.

1. Create a Shipment resource (resource category T), SNPTRK-## to definethe total capacity constraint to represent a trucking transportation methodfor SNP planning. The following table contains the data to use in creatingthe resource:

Resource SNPTRK-##

Resource Category T

Location blank

Time zone UTC

Dimen.(bucket) MASS Mass

Factory calendar US

Planner blank

Transp. Res. Size blank

Bucket capacity 200,000

Unit LB




Number of Periods blank

Period type 1 No period reference

Bkt Util. Rate % 100

Finite scheduling blank

Days - 30

Days + 999

Short description SNP Trucking Resource

2. Now that you have a transport resource created you need to assign it to thetransportation methods in the transportation lanes where it will serve as acapacity constraint for SNP planning. Assign the resource to the transportmethod TRK## in the transportation lane from Vendor 3100 to PlantVEN-## in Model 000:



Solution 13: Create and AssignTransport/Shipment ResourcesTask:Go to APO Master Data resource maintenance and set up a transport/shipmentresource to be assigned to transportation methods within your transportation lanes.

1. Create a Shipment resource (resource category T), SNPTRK-## to definethe total capacity constraint to represent a trucking transportation methodfor SNP planning. The following table contains the data to use in creatingthe resource:

Resource SNPTRK-##

Resource Category T

Location blank

Time zone UTC

Dimen.(bucket) MASS Mass

Factory calendar US

Planner blank

Transp. Res. Size blank

Bucket capacity 200,000

Unit LB

Number of Periods blank

Period type 1 No period reference

Bkt Util. Rate % 100

Finite scheduling blank




Days - 30

Days + 999

Short description SNP Trucking Resource

a) Choose SAP SCM menu: Advanced planning and Optimization→Master Data→ Resource

b) Select Create

c) Select tab

d) Enter data from the table on Resource line.

e) Click the

f) Select Save

g) Select Back

2. Now that you have a transport resource created you need to assign it to thetransportation methods in the transportation lanes where it will serve as acapacity constraint for SNP planning. Assign the resource to the transportmethod TRK## in the transportation lane from Vendor 3100 to PlantVEN-## in Model 000:

a) Follow: SAP SCM Menu: Advanced Planning and Optimization→Master Data→ Transportation Lane→ Transportation Lane


Model Name 000

Start location 3100

Dest. location VEN-##

c) Click Change.

d) In the section labeled Means of Transport: �enter the resourceSNPTRK-##. �

e) Select Save

f) Select Exit

to return to the session manager.



Exercise 14: Create Handling resources.

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create a Handling resource that will be assigned to a plant location.

Business ExamplePP/DS planning will be used to plan materials procured from a subcontractor. Ourplant location supplies the vendor with component parts. The vendor subsequentlyprocesses the materials and delivers the finished product. A handling resource willbe created at the plant location to model potential constraints with the handling ofthis material.

Task:Create a handling resoure to model the inbound and outbound material handlingand you plant location. The same resource is used for both: therefore onlyone resource will be required. There are six of these resources available in thewarehouse receiving area therefore we will need to create a multi mixed activity.This resource will then be assigned to the plant.

1. Create the handling resource RCV-## using the data from the table below.

Resource RCV-##

Cat H

Location 3100

Factory calendar US

Capacity 6

Finite scheduling Check

Days - 30

Days + 180

Short description Receiving



Solution 14: Create Handling resources.Task:Create a handling resoure to model the inbound and outbound material handlingand you plant location. The same resource is used for both: therefore onlyone resource will be required. There are six of these resources available in thewarehouse receiving area therefore we will need to create a multi mixed activity.This resource will then be assigned to the plant.

1. Create the handling resource RCV-## using the data from the table below.

Resource RCV-##

Cat H

Location 3100

Factory calendar US

Capacity 6


Days - 30

Days + 180

Short description Receiving

a) Choose SAP SCM menu: Advanced Planning and Optimization→Master Data→ Resource

b) Enter Resource, Location and Resource Category from data table.

c) Select Create

d) Choose theMultiMixed tab.

e) Enter remaining fields from data table on resource line.

f) Select Continue

g) Choose Save



Exercise 15: Create Vehicle Resourcesfor TP/VS Planning (OPTIONAL: TimePermitting)

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create Vehicle Resources for Transportation Planning/Vehicle Scheduling

planning and optimization.

Business ExampleAfter SNP and the Transport Load Builder has been used to plan and createvarious stock transport orders, TP/VS will be used to perform the short termvehicle scheduling (VS) and carrier selection planning for these transportationdemands. Vehicle resources must be created for the VS optimizer to use in theassignment of resources to planned shipments.

Task:Create two vehicle resources, one representing a full truck load capacity and theother representing a less-than-truck load capacity. From each of these vehicleresources multiple occurrences of each will be created using the Copy function tomodel the fact that several pieces of similar equipment is available for resourceplanning.

1. Create the vehicle resource G##-FTRK01 using the data from the tablebelow.

Resource G##-FTRK01

Resource Category T

Location blank


Time zone EST

Continuous Dim. MASS Mass

Factory calendar US

Planner blank

Start 00:00:00

End 23:59:00

Break Duration blank




Capacity 40000

Unit LB


Days - 30

Days + 180

Short description Full Truck Load

Add: Additional CapacityDimension Volume

Capacity 2200

Unit of Measure FT3

2. Create four additional vehicle resources by using the Copy function andthe G##-FTRK01 resource.

3. Create the vehicle resource G##-LTRK01 using the data from the tablebelow.

Resource G##-LTRK01

Resource Category T

Location blank


Time zone EST


Factory calendar US

Planner blank

Start 00:00:00

End 23:59:00


Capacity 20000

Unit LB


Days - 30

Days + 180

Short description Less-than Truck Load

Add: Additional Capacity




Dimension Volume

Capacity 1100

Unit of Measure FT3

4. Create four additional vehicle resources by using the Copy function andthe G##-LTRK01 resource.



Solution 15: Create Vehicle Resourcesfor TP/VS Planning (OPTIONAL: TimePermitting)Task:Create two vehicle resources, one representing a full truck load capacity and theother representing a less-than-truck load capacity. From each of these vehicleresources multiple occurrences of each will be created using the Copy function tomodel the fact that several pieces of similar equipment is available for resourceplanning.

1. Create the vehicle resource G##-FTRK01 using the data from the tablebelow.

Resource G##-FTRK01

Resource Category T

Location blank


Time zone EST


Factory calendar US

Planner blank

Start 00:00:00

End 23:59:00


Capacity 40000

Unit LB


Days - 30

Days + 180

Short description Full Truck Load

Add: Additional Capacity




Dimension Volume

Capacity 2200

Unit of Measure FT3


b) Select Create

c) Choose the tab.

d) Enter the data from the table on the resource line.

e) Select Continue

f) Select the tab.

g) Enter the Dimension, Capacity and Unit of measure for the AdditionalCapacity check.

h) Select Save




2. Create four additional vehicle resources by using the Copy function andthe G##-FTRK01 resource.

a) Select the line with the vehicle resource G##-FTRK01.

b) Select Copy Resourcein the application toolbar.

c) Select Make Multiple Copies of Resources from the drop down list.

d) Enter 2 in Start number.

e) Enter 4 in Number of resources.

f) Blank the last character of the vehicle resource name, G##-FTRK01,that should appear in the field New resources so that it looks like:G##-FTRK0 .

g) Select the Copy object icon .

h) Four new vehicle resources should now appear under the Vehicle tab.

i) Select Save.

j) Select all 5 resources and click the Model assignments icon .

k) Select Model 000, click the Assign Resources to Model icon , and

click Continue .

l) Select Save.

m) Select Back.

3. Create the vehicle resource G##-LTRK01 using the data from the tablebelow.

Resource G##-LTRK01

Resource Category T

Location blank


Time zone EST


Factory calendar US

Planner blank

Start 00:00:00

End 23:59:00





Capacity 20000

Unit LB


Days - 30

Days + 180

Short description Less-than Truck Load

Add: Additional CapacityDimension Volume

Capacity 1100

Unit of Measure FT3


b) Select Create

c) Select the tab.

d) Enter the fields from the data table on the resource line.

e) Select Continue

f) Select the tab.

g) Enter the Dimension, Capacity and Unit of measure for the AdditionalCapacity check.

h) Select Save




4. Create four additional vehicle resources by using the Copy function andthe G##-LTRK01 resource.

a) Select the line with the vehicle resource G##-LTRK01.

b) Select Copy Resourcein the application toolbar.

c) Select Make Multiple Copies of Resources from the drop down list.

d) Enter 2 in Start number.

e) Enter 4 in Number of resources.

f) Blank the last character of the vehicle resource name, G##-FTRK01,that should appear in the field New resources so that it looks like:G##-LTRK01 .

g) Select icon Copy object.

h) Four new vehicle resources should now appear under the Vehicle tab.

i) Select Save.

j) Select all 5 resources and click the Model assignments icon .

k) Select Model 000, click the Assign Resources to Model icon , and

click Continue .

l) Select Save.

m) Select Back .



Lesson Summary

You should now be able to:� Explain the purpose of a Shipment/Transport, Vehicle, Storage and Handling



data maintenance.



Lesson: Capacity Variants in SAP SCM

Lesson OverviewCapacity can fall under two categories, budgeted and theoretical. Budgetedcapacity is the planned capacity, for example a plant runs 5 days a week, twoshifts per day, 8 hours per shift. Planners will typically try and stay inside of thebudgeted capacity when creating short to mid range schedules. However, the needmay arise to model a capacity that fluctuates throughout the year due to seasonaldemand, or capacity that fluctuates within a given day. In this lesson you will learnto how to model the fluctuations in capacity that occur at resources.


� Create Capacity Variants in SAP SCM� Describe the different methods of capacity variants in SAP SCM

Business ExampleIn Plant 3100 your experience capacity fluctuations in your work force.Throughout out the course of a day, your largest labor for is available duringthe day, then is reduced by 25 % in the evening, and then down to 50% overallcapacity at night. However, during the months of April through August, you addaddition staff to support the summer seasonal demand. Use capacity variants tomodel this capability.

Capacity Variants in SAP SCMIn order for business to plan properly, the need to state available capacity iscritical. During the budgeting process, all companies base there planned capacityon supply chain costs and weigh those against profitability. This will typicallylead to a manufacturing budget that will give a rough estimate as to how muchcapacity will be required through out the year. However, this data is predicated ona forecast, which by definition will be incorrect to some degree. Therefore mostorganization will build in some contingency plans to combat such instances.


SCM215 Lesson: Capacity Variants in SAP SCM

Figure 99: Capacity Fluctuations

From a planner�s perspective, the ongoing supply chain plan must incorporate boththe budgeted capacity which has been set forth through long term planning, as wellas what the full capabilities of the supply chain are to react to any situation. Oftentimes a companies products react to seasonal demands which causes capacity tofluctuate throughout the year.

Note: In ECC these types of situations were modeled within each capacityheader, using intervals and shifts. This data can not be transferred toSAP SCM due to differences in the way it is set up. In ECC a significantamount of data is related to configuration, where as in SAP SCM it is allmaster data. SAP SCM is step up different in order to handle the capacityrelevant to the optimization engines that can be used in planning.

In SAP SCM, the resource capacity variants will be used in may ways to helpcompanies model their budgeted capacity, the theoretical capacity, and anyfluctuations that occur with in a day as well as within a given interval of time.Any resource in SAP SCM an use intervals of time. They will be used to modelbudgeted capacity for ongoing planning purposes, but also allow other variants ofcapacity to simulate alternative plans.



Capacity variants in SAP SCM can consist of the follow data segments:

� Breaks� Shift Factors� Shifts� Shift Sequences� Quantity/Rates (SNP)� Rate Definitions� Material Dependent Rates

BreaksBreaks define the amount of planned down time that a resource will be given.Typically this is due to labor resources taking require breaks throughout thecourse of a shift.

Figure 100: Break Patterns in SAP SCM

Breaks can be modeled by two different methods:

� Relative time to the start of a shift� Absolute time within a shift.

When using breaks, planners must realize that this is time that will not bescheduled for production. This means that if relief operators are used and there isno actual resource down time, this should not be considered a break.

Break Patterns do not have validity dates. Each break pattern will be assignedto a shift that has a date validity. Each pattern can have up to nine breaks, andeach break will be given a Break Number. Companies should define each breakspecific to the planner responsible for maintaining that data by maintain thePlanner Group. If a user wants an absolute start and finish time, the Start of



Break and End of Break will have an HH:MM:SS format and is only valid from00:00:00 to 24:00:00. By using absolute times, users are lock into using only thosebreak patterns that are valid during a shift duration. If Companies have a standardbreak schedule such as after the first two hours a 15 minute break is allotted, thenafter four hours a 30 minute lunch, then after six hours another 15 minute break.This situation is not specific to a shift start time so it is relative to where it getsused. The field Break After Hours, will allow users to define how long after ashift starts, that a break is to occur. The Duration of Break field, will identifyhow long of a duration for the break. Both fields are maintained in HH:MM:SS.

Shift FactorsShift factors are used to distinguish situations that occur on different shifts. Thismay entail different number of individual capacities for multi-activity resources.It may describe the amount of tonnage that can be moved during different hoursof the day as well.

Figure 101: Shift Factors

Within the definition of the shift factor, users can define a date Valid to Date, thePlanner Group responsible for maintaining the data, the Capacity for that shift,the unit of measure if other than individual capacities, and the Resource Utilization.

Note: The utilization factor will effect the scheduling duration ofactivities at the resource. Since the value is not �time�dependent it will beused to adjust the durations up for factors less than 100%, and adjust thedurations down for those factors greater than 100%.

Caution: Be careful not to have included resource utilization into thework center efficiency or the task list rates in ECC . This will cause thedurations to be over or under stated for scheduling purposes.



Shift DefinitionsCertain resources due to their high utilization rates with need much more attentionto detail in order to improve the efficiency of the resource. In order to due this,planners will need to model the availability capacity to the shift or to the minute.The resource can accomplish start a stop times, but during scheduling plannersmay wish to plan certain activities in a smaller period than a day.

Figure 102: Shift Definitions

Companies will have an opportunity to create an unlimited amount of shifts todefine there capacity scenarios. Whether it be an 8,10 or 12 hours shift, these canthen be combined in order to define the available capacity for a period of time.

Within the definition of the shift, users can define a Valid to period, the PlannerGroup responsible for the maintenance of the capacity, the Start of shift and Endof shift (HH:MM:SS).In addition to the times, users can include any type of workstoppages related to breaks. The Break Pattern field, will use a break pattern thatwas created prior to the creation of the shift.

Note: If the break pattern has absolute times, the planners much matchthe shift and the break pattern accordingly.

If a break pattern is used the Duration of Break field will be display only. Userscan also decide to enter a independent break time which will not be take at anyspecified time.

Caution: If an duration of break is used independent of a break pattern,the durations of all activities will be increased since no specific down timehas been specified.



Lastly, a shift definition can be included to specify the amount of capacity forthat particular shift or a change in utilization from previous shifts. This may beused to identify that less work gets done with the same people on the afternoonor evening shifts.

Caution: Any changes to the shifts after they are used in a shift sequenceor a variant could cause a ripple effect. Be sure to run a where used reportto see what resources will be affected. The system will provide a pop upmessage with a warning!

To run the where used report, double click on the shift and select the Resource

Where-Used list

Shift SequencesOnce the break patterns (optional), shift factors (optional), and shifts (required)have been defined planners can being to create a sequence of shifts that models theresources available capacity. In a shift sequence, you define the daily sequence ofshifts for as many consecutive days as you want. For each day, you can specify upto nine shifts. The shifts for one day can overlap, but they must have different starttimes. The last shift of one day may finish the following day. You can also use ashift sequence to define the working times and the capacity in a particular timeinterval of a capacity variant.

Figure 103: Shift sequences

Note: In ECC shifts were not allowed to overlap or finish in the followingday!



Within the definition of the sequence you will define the day number that thesequence is valid. For example you might use a two shift operation Mondaythrough Wednesday, this would be day 1. On Thursday and Friday you run threeshifts this would be on day 4, and on Saturday, day 6 would have no shifts sinceyou do not run the weekend

Caution: When creating capacity variants, understand the definition ofthe shift sequence. If the shift sequence is designed to start on a particularday of the week, then the capacity variants using the shift sequence shouldstart and end on a particular day of the week.

Each sequence may contain several �Day Numbers�to make up the desired shiftmodel. The Shift Sequence value will be the same for each day that will makeup the total sequence. Upon deciding which day to being the sequence, eachsequence will have a Valid to date, and the Planner Group that is responsiblefor maintaining the shift data. The Non-Work days field (Start/End of MidnightShifts on Non-Workdays), defines whether a shift that extends past midnight andwhose start or finish falls on a non-workday should take place or be cancelled.This will help planners distinguish how a Holiday that falls in the middle of acycle will be handled. Finally each day will define the shifts that are relevant fordefining the available capacity.

Resource Capacity variantsIf capacity fluctuates within a given day at a multi-activity resource or storage,handling, and transportation resource capacity variants typically will be required.If Capacity fluctuates throughout the year, for example to handle build up offseasonal inventory, capacity variants can be useful. If planners need to simulateor plan in the long term (SNP) to utilized some additional capacity that is not inthe �plan�, but by running extra shifts or weekends to solve customer serviceissues, variants will be needed.



Figure 104: Capacity Variants

Capacity variants will be resource specific, unless tied to a reference resource.Each resource can have one �Active � variant that will be used for planning. Thisvariant may contain several intervals if necessary. However, each resource mayhave several variants, but only one used in integrated planning environment.

Note: During SNP optimization, SNP can evaluate an additional in activevariants, which typically apply additional cost for addition capacity(overtime costs/maintenance hazards).

Capacity variants can use a shift sequence for PP/DS which applies toSingle/Mixed activity and Multi/Mixed Activity resources. Quantity ratedefinitions are created for Bucket resources which are relevant only to SNP andis SAP SCM data.

When creating a variant, the user will define a Capacity Variant number, aFrom date and To date to give a date validity period. The shift sequence will beidentified to identify, start/finish/break times, amount of capacity and utilization.The First Day field, specifies which day of the shift sequence falls on the firstday of the interval. For example, you have defined a four day shift sequence.If you enter 2 for the first day, the first day of the time interval has the shiftsfrom the second day of the shift sequence. The Work Days field, allows the useto overwrite the resource calendar to make a work day a non-working day, ormaking a non-working day a working day. If the user does not wish to specifya shift sequence because it might add too much detail, a shift factor can be usedto define a different capacity (dimension other than time, i.e. mass/volume) or adifferent resource utilization.



Identifying Available CapacityOnce all available capacity is modeled, it is up the users to understand howavailable capacity will be selected. If reference resources are used, Capacityvariants and capacity variants with selected intervals it can be come veryconfusing.

Figure 105: Identifying Available Capacity in SAP SCM

The chart above explains the decision matrix that SAP SCM will follow todetermine available capacity. Users should always funnel the decision to thereference resource if possible, since it is less maintenance on the users. Ifmaintenance is being done to a particular resource, this is an ideal time to createa active variant with a limited interval, and override the reference resource bytaking the line down for a period of time.



Exercise 16: Modeling Capacity Variantsin SAP SCM (Optional: Time Permitting)

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create the necessary shift elements to model capacity that fluctuates within

a given day.� Create the a capacity variant in SAP SCM to model fluctuations in capacity

throughout the year.

Business ExampleIn Plant 3100 your experience capacity fluctuations in your work force.Throughout out the course of a day, your largest labor for is available duringthe day, then is reduced by 25 % in the evening, and then down to 50% overallcapacity at night. However, during the months of April through August, you addaddition staff to support the summer seasonal demand. Use capacity variants tomodel this capability.

Task: Capacity Variants in SAP SCMIn Plant 3100 your experience capacity fluctuations in your work force.Throughout out the course of a day, your largest labor for is available duringthe day, then is reduced by 30 % in the evening, and then down to 30% overallcapacity at night. However, during the months of April through August, you addaddition staff to support the summer seasonal demand. Use capacity variants tomodel this capability.

1. Your Labor resource OP-##_3100_002 does not always work at the samelevel around the clock. On the midnight (M- ##) shift you staff 4 operatorsbetween the hours of 12 am and 8am, on the day shift (D-##) during thehours of 8 am to 4 pm you have a full staff of 6 operators. During theevening shift (E-##)of 4pm to midnight the crew is reduced to 2 operators.Each shift will carry and addition person but this is a relief operation whowill give each of the other operations there total one hour break. yourlabor only works 5 days a week. Shift utilization is at 100% per shift (useSF-1## through SF3##). Create a capacity variant that is valid from now till12/31/999 to reflect this capacity situation.

2. Your capacity will fluctuate throughout the year based on the fact thatyour laundry detergent experiences seasonal demand. During the nextthree months , your operators will be working 7 day work weeks with 12twelve hour shifts, instead of 5 days and three 8 hour shifts, with fluctuating




capacity. 6 operators will work per shift. Use shift s. Create and intervalof available capacity, using shift sequence SCM2 which has already beencreated for this situation.



Solution 16: Modeling Capacity Variantsin SAP SCM (Optional: Time Permitting)Task: Capacity Variants in SAP SCMIn Plant 3100 your experience capacity fluctuations in your work force.Throughout out the course of a day, your largest labor for is available duringthe day, then is reduced by 30 % in the evening, and then down to 30% overallcapacity at night. However, during the months of April through August, you addaddition staff to support the summer seasonal demand. Use capacity variants tomodel this capability.

1. Your Labor resource OP-##_3100_002 does not always work at the samelevel around the clock. On the midnight (M- ##) shift you staff 4 operatorsbetween the hours of 12 am and 8am, on the day shift (D-##) during thehours of 8 am to 4 pm you have a full staff of 6 operators. During theevening shift (E-##)of 4pm to midnight the crew is reduced to 2 operators.Each shift will carry and addition person but this is a relief operation whowill give each of the other operations there total one hour break. yourlabor only works 5 days a week. Shift utilization is at 100% per shift (useSF-1## through SF3##). Create a capacity variant that is valid from now till12/31/999 to reflect this capacity situation.

a) SAP SCM Menu Path: Advanced Planning and Optimization→Master Data→ Resource

b) Enter your resource OP-##_3100_002 and select Change

c) Select Definitions

d) Select the Shift Factor tab

e) Enter the following data:

Field Name: Data:Shift Factor Definition SF-1##

Valid to 12/31/9999

Planner 2##

Capacity 4

Unit Leave Blank

Resource Ulization 100

Press Enter

f) Enter the following data:





Valid to 12/31/9999

Planner 2##

Capacity 6

Unit Leave Blank


Press Enter

g) Enter the following data:


Valid to 12/31/9999

Planner 2##

Capacity 2

Unit Leave Blank


Press Enter

h) Select SAVE

i) Select the Shifts tab

j) Enter the following parameters

Field Name: Data:Shift M - ##

Valid to 12/31/9999

Planner 2##

Start 00:00:00

End 08:00:00

Shift Factor SF-1##

k) Press Enter

l) Enter the following parameters




Field Name: Data:Shift D - ##

Valid to 12/31/9999

Planner 2##

Start 08:00:00

End 16:00:00

Shift Factor SF-2##

m) Press Enter

n) Enter the following parameters

Field Name: Data:Shift E - ##

Valid to 12/31/9999

Planner 2##

Start 16:00:00

End 24:00:00

Shift Factor SF-3##

o) Select SAVE

p) Select the Shift Sequences tab

q) Enter the following parameters to identify your work days

Field Name: Data:Shift Sequence Group - ##

Day number 1

Valid to 12/31/9999

Planner 2##

Non-Work Days Can Only Start or Finishon a Workday

Shift 1 M - ##

Shift 2 D - ##

Shift 3 E - ##




r) Repeat this process for days 2 thru 5 by selecting day one of your

sequence and selecting Copy

s) Enter sequence Group-##and change the day accordingly

t) Select SAVE

u) Select Back

v) Select Capacity Variants

w) Select your resource OP - ##_3100_002 and select Insert Interval

x) Enter the following Data

Field Name: Data:Capacity Variant 01

From Today

to 12/31/9999

Shift Sequence Group - ##

First Day 1

Work Days Work Days According tothe Factory Calendar

y) Select SAVE

z) Select Back

aa) Enter your variant 01, in the activate variant field in your resourceavailable capacity

ab) Select SAVE

2. Your capacity will fluctuate throughout the year based on the fact thatyour laundry detergent experiences seasonal demand. During the nextthree months , your operators will be working 7 day work weeks with 12twelve hour shifts, instead of 5 days and three 8 hour shifts, with fluctuating




capacity. 6 operators will work per shift. Use shift s. Create and intervalof available capacity, using shift sequence SCM2 which has already beencreated for this situation.

a) SAP SCM Menu Path: Advanced Planning and Optimization→Master Data→ Resource

b) Enter your resource OP-##_3100_002 and select Change

c) Select Capacity Variants

d) Select Insert Interval

e) Enter the following Data for your interval

Field Name: Data:Capacity Variant 01

From Today

to 3 months from today

Shift Sequence SCM2

First Day 1

Work Days Work Days According toCalendar

f) Select SAVE

g) Select Back

h) In the bottom section select the Standard capacity tab

i) Select the capacity button and scroll to see your changes in capacity.

j) Select SAVE



Lesson Summary

You should now be able to:� Create Capacity Variants in SAP SCM� Describe the different methods of capacity variants in SAP SCM


SCM215 Unit Summary

Unit SummaryYou should now be able to:� Discuss the concept of work center and a resource� Demonstrate the integration of the two objects via the CIF� Explain the purpose of a Shipment/Transport, Vehicle, Storage and Handling



data maintenance.� Create Capacity Variants in SAP SCM� Describe the different methods of capacity variants in SAP SCM


Unit Summary SCM215



Test Your Knowledge

1. Vehicle resources must be created for Supply Network Planning (SNP).Determine whether this statement is true or false.□ True□ False

2. The following are examples of resource categories that are used to representcapacities in APO planning.Choose the correct answer(s).□ A Production□ B Trucks□ C Transportation□ D Storage□ E Rail□ F Handling

3. A used in SNP has a quantity-orientedcapacity.Fill in the blanks to complete the sentence.

4. A transport/shipment resource is assigned to a transportation method withina transportation lane.Determine whether this statement is true or false.□ True□ False

5. Explain, briefly, how vehicle resources are used and assigned in TP/VSplanning.



Answers

1. Vehicle resources must be created for Supply Network Planning (SNP).

Answer: False

Vehicle resources are used only by the APO component TransportationPlanning/Vehicle Scheduling (TP/VS).

2. The following are examples of resource categories that are used to representcapacities in APO planning.

Answer: A, C, D, F

Trucks and Rail are examples of transportation modes/methods not resourcecategories.

3. A bucket resource used in SNP has a quantity-oriented capacity.

Answer: bucket, resource

4. A transport/shipment resource is assigned to a transportation method withina transportation lane.

Answer: True

After a transport/shipment resource is created it is assigned to thetransportation method in the transportation lanes where it is to be used torepresent a capacity.

5. Explain, briefly, how vehicle resources are used and assigned in TP/VSplanning.

Answer: In TP/VS planning, a vehicle resource is assigned by the optimizerto a specific planned shipment. The resource is committed to that shipmentfor the duration of the shipment process and cannot be assigned to any othershipment during this period.


Unit 7Modeling Production Process Models

in SCM

Unit OverviewIn the realm of manufacturing the Bill of material (BOM) and Task lists (Routings)decide what, how much, and when products are needed for production. In SAPSCM The BOM and routing will be combined to create the Production ProcessModel PPM in SAP SCM. The following lesson will cover the BOM and Routingfunctionality that will transfer to SAP SCM, as well as how the data will formattedin the PPM in SAP SCM.


� Explain the concept of a PPM� Explain which fields in a BOM are relevant for planning and how they will

be transferred to SAP SCM� Explain how the following BOM functionality is transferred to SAP SCM� Create BOM in SAP ECC for later transfer to SAP SCM.� Explain which fields and functions in a routing transfer to SAP SCM.� Explain how the following Routing functionality is transferred to SAP SCM:� Explain the need for production versions� Create production versions� Transfer a BOM and a Routing to SAP SCM� Navigate the PPM� Identify the dependencies between SAP ECC production version, and SAP

SCM Production Data Structure (PDS).�� Explain the difference between a master recipe and a BOM and routing.� Transfer a recipe to SAP SCM and explain the PPM functionality.


Unit 7: Modeling Production Process Models in SCM SCM215

Unit ContentsLesson: Overview of PPMs in SAP SCM.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .353

Exercise 17: Production Versions ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .359Lesson: SAP ECC Bills of Material in the SAP SCM PPM ... . . . . . . . . . . . . .364

Exercise 18: BOM Basics in SAP SCM .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . .381Lesson: SAP ECC Routings in the SAP SCM PPM... . . . . . . . . . . . . . . . . . . . . .386

Exercise 19: Routing Basics in ECC .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .413Lesson: PPM in SAP SCM .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .419

Exercise 20: Production Process Models in SAP SCM ... . . . . . . . . . . . .447Lesson: The Production Data Structure (PDS) ... . . . . . . . . . . . . . . . . . . . . . . . . . .459

Procedure: Create and Display PDS .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .467Exercise 21: Production Data Structures in SAP SCM... . . . . . . . . . . . . .481

Lesson: Recipes and the PPM Generation.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .491Exercise 22: SAP ECC Master Recipe to SAP SCM ProductionProcess Model (Optional - time permitting) . .. . . . . . . . . . . . . . . . . . . . . . . . . . .497


SCM215 Lesson: Overview of PPMs in SAP SCM

Lesson: Overview of PPMs in SAP SCM

Lesson OverviewAs one one of the supply chain planners responsible for master data you will betasked with integrating SAP ECC and SAP SCM. You need to be able to explainto other users in general term s how bills of materials and rountings will integratewith SAP SCM.


� Explain the concept of a PPM

Business ExampleAs one one of the supply chain planners responsible for master data you will betasked with integrating SAP ECC and SAP SCM. You need to be able to explainto other users in general term s how bills of materials and rountings will integratewith SAP SCM.

Overview of Manufacturing Master Data in SAP SCMOn of the cornerstones of a manufacturing process is the master data that ensuresthe timely delivery of components and finished product to support requirmentsdates. Depending upon the complexity of your process you may only a fewcomponents to be concerned about, or have several layers of manufacturing.



Figure 106: APO Manufacturing Master Data

In SAP SCM your company will have two choices to model a manufacturingprocess ,Production Process Model (PPM) or the Produciton Data Structure. Eachwill contain the following Items:

� Components (Raws or Semi-finished)� Scheduling Rates� Manufacturing Resources.

The PPM or the PDS are objects that can be generated by the CIF based onSAP ECC master data. The PPM is based on the SAP ECC production version.The production version is a combination of the bill of material and task list(routing/recipe).



Figure 107: Bills of Material

A bill of material is a master data object that is used mainly by engineering andmanufacturing to model the input components for a semi-finished or finishedproduct. The BOM will list the product numbers, quantities and units of measure.In SAP ECC their will be other relevant control parameters that will be used tocontrol the planning results.

Figure 108: Task lists (Routings/Recipes)



A task list is a generic term to describe in detail the manufacturing process. InSAP ECC there are several different types of tasks lists that are used to controlspecifics processes. Several examples are :

� Standard Routing (production orders)� Rate Routings (repetitive mfg.)� Recipes (process orders)

Production VersionsWhen manufacturing certain items, companies will often have many methods ofmanufacturing these items. Whether it be using different component structures(BOMs), different operational steps (work centers), or redundant manufacturinglines such as generic packaging lines (routings). As discussed, a PPM in SAPSCM is a combination of a bill of material and a tasklist. This forms the basis of aunique manufacturing process for a specific materials.

Figure 109: Production versions inSAP ECC

As a result of the PPM being unique process, Production versions are aREQUIRED piece of master data in SAP ECC, if you wish to transfer BOMsand Task lists to SAP SCM.

Production VersionThe production version determines the various production techniques that canbe used to produce a material. Within the production version users specify:

� the BOM alternative for a BOM explosion� the task list type, the task list group, and the group counter for the

allocation to task lists� lot-size restrictions and area of validity



Production versions are material master data. Therefore the BOM and routingmust exists before the item can be used. The production version field is fourcharacters alpha numeric. As stated earlier, the production version number will beincluded in the plan number of the PPM or PDS in SAP SCM. The validity date isvery important when considering what components and operations will transfer toSAP SCM, especially if using engineering change management (ECM).

Figure 110: Production version details in SAP ECC

There are many fields within the production version, some are planning relevant,others are execution relevant. In order for the CIF to create a PPM or PDS,a production version must have; a defined lot size, a valid task list/routinggroup/group counter, and a valid BOM alternative and Usage. The lot size theproduction version will become the lot size of the PPM or PDS in SAP SCM.

Caution: Lot sizes in the BOM and the routing are not relevant in SAPSCM. However, in the production version, a consistency check can beperformed to establish if the BOM and routing have similar validity datesand lot sizes. If warnings or errors occur due to incompatible lots sizes,the PPM or PDS will still be transferred to SAP SCM. However, this maycause a problem with the production order when it is exploded back inSAP ECC after being transferred from SAP APO.



Exercise 17: Production Versions

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create production versions in preparation for transfer to SAP SCM

Business ExampleDuring the filling production, there are three possible methods to manufacture. Aproduction version must be created for each.

Task: Production VersionsAs part of you supply chain modeling objective, you will need to create a PPMto support the basic planning functionality within SAP SCM. In order to createthe PPM in SAP SCM from SAP ECC master data we must fulfill one morerequirement. As a requirement, a production version must exist in order to link theBOM and Routing together, in order to generate a PP/DS PPM in SAP SCM.

1. Create a production version A001 (High Speed Filling group ##) for yourproduct ZAP-1## in plant 3100. Use the Routing that was created for thework center Fill-1##, and a associated BOM for your ZAP-1##. Makeit effective from today till the end of time. Its lots size is valid for anyquantity (1 - 99,999,999. Before saving the production version, proceedto next exercise step.

2. Using the new production version maintenance transaction, create aproduction version A002 - Medium speed filling group ## for your productZAP-1## in plant 3100. Use the material number and the plant to see allthe other production versions. Use the Routing that was created for thework center Fill-4##, and the associated BOM that you just created foryourZAP-1##. Make it effective from today till the end of time. Its lotssize is valid for any quantity.

3. Create a production version A003 (Slow Speed Filling Group ## for yourproduct ZAP-1## in plant 3100. Use the group routing T-SCNA21 (slowspeed lines), that you assigned your ZAP-1##, and a associated BOM foryou ZAP-1##. Make it effective from today till the end of time. However,due to its slow speed, it only makes sense to use this production method forproduction runs which do not exceed 20, 000 cases.



Solution 17: Production VersionsTask: Production VersionsAs part of you supply chain modeling objective, you will need to create a PPMto support the basic planning functionality within SAP SCM. In order to createthe PPM in SAP SCM from SAP ECC master data we must fulfill one morerequirement. As a requirement, a production version must exist in order to link theBOM and Routing together, in order to generate a PP/DS PPM in SAP SCM.

1. Create a production version A001 (High Speed Filling group ##) for yourproduct ZAP-1## in plant 3100. Use the Routing that was created for thework center Fill-1##, and a associated BOM for your ZAP-1##. Makeit effective from today till the end of time. Its lots size is valid for anyquantity (1 - 99,999,999. Before saving the production version, proceedto next exercise step.

a) Menu path:Logistics→ Production→Master Data→Material Master→ Material→ Change→ Immediately

b) Enter your material ZAP-1##, select Select views, and chooseMRP4,

and select Continue (enter) .

c) Enter plant 3100 and select Continue (enter)

d) Select Production versions.

e) Enter version A001, High Speed Filling Group ##, valid from currentdate to 12/31/9999. Select Details .

f) Enter a lot size of 1 to 99,999,999

g) Under the segment Task Lists in the Detailed Planning row, choose tasklist type Routing, under the group, select the drop down and Search

by Using Material, and select Continue (enter) . Or use groupHDL-## and group counter 01.

h) Enter and alternative BOM 1 and BOM usage 1

i) Select Continue (twice)

j) Save

2. Using the new production version maintenance transaction, create aproduction version A002 - Medium speed filling group ## for your productZAP-1## in plant 3100. Use the material number and the plant to see allthe other production versions. Use the Routing that was created for the




work center Fill-4##, and the associated BOM that you just created foryourZAP-1##. Make it effective from today till the end of time. Its lotssize is valid for any quantity.

a) Menu path:Logistics→ Production→ Master Data→ Productionversions

b) Enter plant 3100 and your material ZAP-1## (clear all other fields),

and select Continue (enter) .

c) Enter ZAP-1##, version A002, Medium Speed Filling line ##, validfrom current date to 12/31/9999.

d) Enter a lot size of 1 to 99,999,999

e) Enter alternative BOM 2 and BOM usage 1

f) Under the segment Task lists, choose task list type Routing, under thegroup counter, select the drop down and Search by Using Material,

and select Continue (enter) . Or use group HDL-## and groupcounter 02.

g) Select Continue (enter)

Note: Enter through any system �Warning�messages.

h) Select Save

3. Create a production version A003 (Slow Speed Filling Group ## for yourproduct ZAP-1## in plant 3100. Use the group routing T-SCNA21 (slowspeed lines), that you assigned your ZAP-1##, and a associated BOM for




you ZAP-1##. Make it effective from today till the end of time. However,due to its slow speed, it only makes sense to use this production method forproduction runs which do not exceed 20, 000 cases.

a) Menu path:Logistics→ Production→ Master Data→ Productionversions

b) Enter ZAP-1##, version A003, Slow Speed Filling Group ##, validfrom current date to 12/31/9999. Select Details .

c) Enter a lot size of 1 to 20,000

d) Under the segment Task lists, choose task list type Routing, under thegroup counter, select the drop down and Search by Using Material,

and select Continue (enter) . Or use group T-SCNA21 and groupcounter 01.

e) Select Continue (enter)

Note: Enter through any system �Warning�messages.

f) Save



Lesson Summary

You should now be able to:� Explain the concept of a PPM



Lesson: SAP ECC Bills of Material in the SAP SCM PPM

Lesson OverviewAs part of the manufacturing process we will need to identify which materials areneeded to manufacture your liquid detergent ZAP-1##. In SAP ECC we willmodel this as a bill of material. However, in SAP SCM the bill of material will becombined with the routing to form a Production Process Model (PPM). In order tobetter understand the SAP process, we will create a bill of material in SAP ECCand explain which items are relevant for SAP SCM and which items are not.We will also expose any differences in the way that SAP ECC models certainfunctionality and how SAP SCM will or will not handle the same functionality. Ina subsequent lesson we will create a routing and transfer the two objects to SAPSCM and review the transformation in detail.


� Explain which fields in a BOM are relevant for planning and how they willbe transferred to SAP SCM

� Explain how the following BOM functionality is transferred to SAP SCM� Create BOM in SAP ECC for later transfer to SAP SCM.

Business ExampleAssume that in the filling of liquid detergent at your company you require the useof a Bill of Material to identify the necessary components. However, you canmodel typical manufacturing practices using the idea of continuous input/output,component scrap, lead time offsets, bulk materials, and text items. You decideto use these concepts in the construction of our BOM for your finished goodZAP-1##.

Bill of material in SAP ECCSAP describes the Bill of Material as a complete, structured list of the componentsthat make up an object. The list contains the description, the quantity, and unit ofmeasure. The components are known as BOM items.

The bill of material is a complex object due to its integrated nature. Upon creatinga bill of material, users will have to specify the BOM Category and the BOMusage.


SCM215 Lesson: SAP ECC Bills of Material in the SAP SCM PPM

BOM Categories

Figure 111: BOM Categories

BOM CategoryThe classification of bills of material (BOM) for representing differentobjects such as materials or documents. Specific elements are entered for thebills of material for the various objects, such as: Material bill of material(referring to a material master record), Document bill of material (referringto a document info record). BOM categories will allow/disallow BOMs tobe used in other areas of the business where it might or might not makesense for there use.

Upon creating and changing bills of material, users will have to navigate to specifictransactions that deal with the particular type of bill of material that is being used.

As depicted by the slide there are several types of BOM categories:

Material BOM: BOM with Reference to a MaterialA bill of material that you create for a material is known as a materialBOM in the SAP System. Material BOMs are mainly used to represent thestructure of products manufactured within your company. You can enter bothmaterials and documents as components of this BOM. A document inforecord must exist in your SAP System for each document you enter.

Document Structure: BOM with Reference to a DocumentA complex document may be made up of several documents, such as aprogram, technical drawings, papers, and photographs. These relatedinformation and documentation objects are grouped together as a unit using adocument structure � a BOM for a document. In effect, you create a BOMfor a document info record. This "BOM" is known as a document structure.Since documents are not relevant for APS systems document structureswill not be supported in the CIF



Equipment BOM: BOM with Reference to an EquipmentThe system also allows you to maintain BOMs for equipment (technicalobjects for plant maintenance). Equipment BOMs are used to describethe structure of equipment and to assign spare parts to equipment formaintenance purposes. Since these BOMs are linked to equipment, they areknown as equipment BOMs.

Functional Location BOM: BOM with Reference to a Functional LocationBills of material for functional locations group together the elements ofa technical structure, such as the functional unit of an entire plant. In thestandard SAP System, a master record exists for each functional location.BOMs of this category are linked to these master records. This is whythey are known as functional location BOMs. A functional location BOMcan contain materials (PM structure elements and items relevant to plantmaintenance) and documents.

Order BOM: BOM with Reference to a Sales OrderYou work with order BOMs when you specially tailor the make-to-orderproduction of your products to the requirements of your customers. In orderto meet the customer requirements, sales order specific modifications tovarious assemblies are often required. Furthermore, assemblies are oftenspecially constructed for a particular sales order. The order specific, modifiedor created BOMs are saved with reference to materials, sales orders, andsales order items. BOMs of this category are linked to sales orders, so theyare known as sales order BOMs or order BOMs. You can create order BOMsusing the variant configuration as well as the BOM processing function. TheOrder browser is a navigation tool that you can use to get an overview of themulti-level BOMs of a sales order item and which you can use to navigatethe various process and evaluation functions.

Work Breakdown Structure BOM: BOM with Reference to a Production LotProduction lots for finished and semi-finished products can be planned andmanufactured using different BOMs. For example, a substituted componentcan trigger a targeted cost calculation and evaluation per production lotduring the planning stage before sales. The number of a production lot isa WBS element from the Project System. You use this number to plan andmanufacture the production lot for an assembly, and calculate the planned andactual costs for producing the assembly. Because of the reference to a WBSelement from the Project System, these BOMs are known as WBS BOMs.

Note: Materials BOMs are supported by the CIF due to their link to thematerial master. However, since SAP SCM is a material planning system,document BOMs, equipment BOMs Functional location BOMs, and WBSBOMs are not supported via the CIF. As of release 3.1 Sales BOMs arehandled in a limited fashion.



BOM Usage

Figure 112: BOM Usages in SAP ECC

BOM UsageThis key defines the area (such as engineering/design or production) where aBOM can be used. For example, a production bill may have expense items orbulk items were as those items are not particularly relevant for engineeringpurposes. Engineering may choose to use flat bills of material, however forefficiency sake, production may use phantom assemblies. Data is enteredand edited according to organizational area, which allows each business areathe ability to define the BOM according to its needs.

During creation and maintenance of a bill of material, users will always specifywhich BOM usage is relevant to the task at hand for a particular category ofBOM. BOM usages are a configurable item in SAP ECC and can play a role howmaterials will be used within the BOM structure. In configuration, BOM usagesare linked to item status. These item statuses will reflect how and where materialscan be used in SAP ECC . Some statuses can be switched on and off, where asothers will be set to display only. SAP ECC comes delivered with several BOMusages and can be customized as needed.



Figure 113: BOM Usage relevant indicators

Note: BOM usages are strictly SAP ECC functionality and nothing likethem exists in SAP SCM, because it is a pure planning system. Not allBOM usages will pass to SAP SCM. Standard usages like production,engineering, universal, costing, and sales and distribution will transferto SAP SCM. Any usage that does not allow items to be used inproduction will not be used in SAP SCM. If a material BOM is setupwith a usage that does not work with production, the CIF will still generatea PPM in SAP SCM. However, the PPM will not have any items due tothe fact that the production relevant indicator is not set, therefore itemswill not be transferred to SAP SCM. All other indicators are irrelevantin SAP SCM.

For the purposes of training we will focus onMaterial BOMs and Productionusages.

BOM Structure in SAP ECC

Figure 114: Bom Structure in SAP ECC



In SAP ECC the bill of material is structured on three different levels. The headeris where we will define the output material or what is often referred to as the�Header material�. This can be a finished good or a sub-assembly. The body,or what is referred to as the item level, will contain descriptive and controlparameters about how that component will be used in the manufacturing of theheader material. The last level is the sub item level, which is typically used in thehigh tech industry to define where a part might be placed on an assembly duringthe manufacturing process.

Figure 115: BOM header

The header itself contains very few SAP SCM relevant fields. Every materialin the BOM that is relevant for planning will become a �logical component �aswell as a �product�in the PPM. The �header material�itself will become the�output�product in the PPM. This will be indicated by setting the Input/Outputfield in the logical component to O - Output. In addition, the header material willset the Main material flag on the logical component as well. This will indicate inSAP SCM which material was the header material on the BOM, since a PPM canhave more than one output material.

The Base Quantity of the header materials relates to the component quantities.Due to the fact that SAP ECC is limited to showing only three decimal places, thebase quantity is often used to overcome this limitation. For example, if you have.00000075 grams of perfume used to make a kilogram of liquid detergent, you willhave to model .075 grams of perfume is necessary to make 10,000 Kilograms ofliquid detergent. Another example is in our business example scenario, where we



will model the ZAP-1## with a base quantity of 4 pcs. All components will be ona 1:1 ratio except the corrugated box, where as one box is used to pack out 4 of theZAP-1##. The CIF will model the base quantity as the �variable consumption�.Ultimately this will be used in determining the durations for scheduling in thePPM and dependent requirements during planning.

The BOM Status field is relevant to SAP SCM. The BOM status is used tocontrol which business areas can use the BOM. In order for the components to beincluded in the PPM during the transfer through the CIF, ALL of the followingindicators must be set in the BOM status:

� MRPExplo (Explosion in MRP)� PlanOrd (Released for Planned orders)� Rel cstg (Released for Costing)� RelWkSch. (Released for Work Scheduling comp. alloc. to routings)� Rel ords (Released for Production orders)

Note: If all of these indicators are set, every production relevant item willbe included in the PPM. If oneof these indicators are not set, the CIF willgenerate the PPM, however, no components will be added to the PPM.

The lot size indicator is not relevant for the transfer of the BOM via the CIF. TheBOM lot sizes will be �checked�upon creating production versions, however, theywill not prevent the PPM from being created.

SAP ECC Item Detail Functionality in the BOMWithin the SAP ECC BOM, users will have the opportunity for each itemincluded in the item overview, to specify certain control parameters. Thesecontrol parameters allow users to control the material specific functionality for aparticular component usage.

Item CategoryAs each component is added to a bill of material, users are required to set an itemcategory that will identify certain control parameters for that item.



Figure 116: Item Overview of a BOM

Item CategoryDefines items in a BOM according to certain criteria, such as the object typeof the component (for example, material master record or document inforecord). The item category controls the following: Screen sequence, Fieldselection, Default values Material entry, Inventory management, Sub-items.The following are the standard delivered item categories in SAP ECC :

� Stock Items� Non-stock Items� Variable-sized items� Document info Record� Text Items� PM structure element� Class item� Phantom material

Note: Of the above mentioned items the following item categories dointegrate with SAP SCM: Non-stock items when not using a materialmaster, document info records, and text items. Phantom (intra) materialsare only supported through the use of master recipe, which is a similarconcept to the PPM.



Intra materialIntermediate product that exists temporarily in a production process andis processed further immediately. Intra materials are managed as masterrecords with a material type of their own and a restricted number of views.The bill of material contains a separate item category for them. Intramaterials are entered as quantities in the bill of material and can thereforebe used for material quantity calculation. However, they are not includedin logistics processes such as purchasing, material requirements planning,quality management, sales and distribution, or costing.

Note: Therefore PM structure elements are only supported if the BOMusage allows items to be relevant for Plant maintenance. Class items areonly supported with configurable BOMs. Variant configuration is handledthrough another integration object called a run time object.

Variable-size items will transfer over as normal stock items and theirquantity Var-Sz items will be mapped to the variable quantity field at theitem level. This quantity is calculated based on parameters and formulasin the item details.

SAP ECC Item Detail, Basic DataWithin each item record, control parameters are broken up into two screen tabs,Basic Data, and Item Status/Text. The Basic Data tab is further broken down intofour areas: BOM item Data, Quantity Data, MRP Data, General Data.

Figure 117: BOM Item Data within the Basic Data Tab

The BOM item data fields, can all be found on the item overview screen. Only theComponent number will transfer to SAP SCM as the logical component/componentand will have the Input/Output field in SAP SCM set to Input.

Figure 118: Quantity Data within the Basic Data Tab



The Quantity Data section controls the component quantities. The quantityfield in SAP ECC will transfer to the Variable quantity field in the PPM. If thefixed quantity indicator is set, the quantity field will be transferred to the fixedquantity field. Component Scrap % will be multiplied against the quantity fieldin the item detail and be transferred to the Variable consumption field withinthe logical component.

Note: The formula is as follows:

(Item Quantity / (100 - Scrap)) x 100

Therefore the variable consumption will contain the required quantity pluscomponent scrap factor. An example of this would be item quantity of 4 with acomponent scrap of 5%. The formula would look like this: (4 / (100 - 5)) x 100 =4.21

The Operation scrap in % and Net ID fields, in conjunction with the Quantityfield transfer to the Variable Quantity field in SAP SCM.

Note: The formula for the use of operation scrap is as follows:

Item Quantity x (1+ Op. scrap in percent)

Therefore the variable consumption in SAP SCMwill contain the required quantityplus operation scrap factor. An example of this would be item quantity of 4 with acomponent scrap of 5%. The formula would look like this : 4 x (1 + .05 ) = 4.2 pc

Caution: Operation Scrap and Component scrap can be combined.The result will increase the dependent requirement for the associatedcomponent.

Figure 119: MRP Data within the Basic Data Tab



Within the MRP data section, several of these fields will control results duringa planning run. However, the Lead time Offset field is only SAP ECC relevantand will have no bearing on SAP SCM . The Oper. LT offset will be transferredto the Offset consumption field attached to the logical component. A positivevalue in ECC will reflect a negative value in APO. Therefore if you want an itemto arrive one day earlier in SAP ECC that will be 1 Day. In SAP SCM it will berepresented as a -1 day offset.

The Distribution Key allows dependent requirements to be spread throughout theduration of the order. There is currently no direct mapping for the ECC distributionkey in APO. The distribution key is mapped as a continuous receipt/requirementin the Consumption type assigned to each logical component in APO.

Note: The following issue can arise by modeling continuous consumptionin the BOM. During the distribution SAP ECC would distribution therequirements across the entire order since the functionality resides in theBOM. In SAP SCM each component is assigned to an activity within anoperation. Therefore distribution will occur only over the single activity,unlike SAP ECC that does it across the entire order. For more informationsee note 456278

The Explosion type is designed to activate or deactivate certain functionality thatwas or was not activated in the material master due to only specific usages. InSAP ECC the explosion type can control:

� Phantom assembly� Phantom in planning� Direct production (collective order)� Direct procurement� Long-term planning� Determining individual and collective requirements

The only functionality that affects SAP SCM is phantom assembly. This settingwill turn the particular item into a phantom assembly for this BOM only! Phantomassemblies will be covered in another unit. The balance of the functionality iscurrently not supported in SAP SCM.

The procurement type is determined from the material type. The Specialprocurement type in the BOM, allows you to define the procurement type moreclosely. For example, you may want a particular item to become a phantomassembly to simplify the BOM structure. If you normally produce a materialin-house, but have the option to have a vendor produce it instead. It may beappropriate to choose subcontracting for this particular usage. Other specialprocurement functions such as production in another plant, are not available untilSAP SCM release 4.0.



Figure 120: General Data in the Item Basic Data

Within the General Data Section, several of the fields will control the affect ofhow items are used within the BOM. The field Co-product, is used to identifywhen a secondary material is created as the result of a manufacturing process.This material will have a cost and a use, and, therefore needs to be inventoried.Co-products will be identified as output materials in regards to the Input/Outputsetting in the logical component. We will discuss co-products in more detail in alater lesson. Discontinuation data is used in SAP ECC to plan the replacement ofparts or part families. This field is used in conjunction with settings in the materialmaster. SAP SCM does not support this function. This functionality is handleddifferently in SAP SCM, through the use of �Interchangeability�.AlternativeItem groups can be used in two ways. The first is to plan the usage of more thanone item that serves the same purpose. For example, a cap from vendor A isused 75% of the time, but the remaining 25% of the time vendor B will supplythe parts. This means both items will be active on the BOM and you will plan tosplit the requirements for every order 75/25. The other option is to be used inconjunction with ATP. You always plan to use the cap from vendor A, but duringan availability check, if the cap from vendor A is not 100% available to cover therequirement, then the cap from vendor B will be substituted for that order, for theentire quantity of the requirement. One method is for planning, the other forexecution. Alternative items are supported only in limited functionality. As ofrelease 3.1, product substitution at the component level can be performed, with theuse of Multi-level ATP. For more information reference note 510313.

The Recursive allowed indicator, will allow the item to be used in the itemoverview section as well as being a header material in the same BOM. Forexample, you may consume an item during rework and in the same BOM it may bea header material or a co-product. Planning with recursive materials is prevented



in SAP SCM standard system by the error message /sapapo/ppm_maintain 509 ifthe material is not classified. Using the code contained in note 611063, recursion(or internal material flow) will be authorized under the following conditions:

� The material is assigned to a class in the product master.� Input and output materials are assigned to different logical components.� The components are assigned to different activities or - if they are assigned

to one activity - arranged at the beginning and end of the activity.

Note: An error message is displayed if any of the three above points doesnot apply, otherwise a warning message notifies the user of an internalmaterial flow. Note that in the case of SNP PPM, the components must bedefinitively assigned to different activities because no logical componentsare available there.

The Reference point field works in conjunction with Project systems, and thisfield is currently not integrated with standard SAP SCM.

Item Detail, Status/Long TextThe Status Long text section has a broad range of control parameters. The fielditem text has no integration properties with SAP SCM. The item status indicatorsare very relevant to integration with SAP SCM. As discussed earlier in thissection, the item statuses can be pre-set by the BOM usages. If statuses are set torequired then they will be selected but the box/indicator will be grayed out. If setto optional, then the field will be changeable. If set to no entry, then the field isnot changeable. BOM usages (OS20) and the default setting item status (OS21)can be set in the IMG.

Figure 121: Item Status indicators

Only those items that have the production relevant flag will transfer to SAP SCM.Items can have other settings, however, production is the key to being relevantfor planning.



Figure 122: Further Data for Status/Long text

The indicators in the Further Data section of the status/long text tab, are used tocontrol planning and execution functions. TheMaterial provision indicator isused when to distinguish the source of materials. By selecting material providedby a vendor, this indicator controls MRP. Only maintain this indicator for amaterial component if the material master record of the header material supportssubcontracting (Special procurement field). The special procurement key forsubcontracting means that all components of the BOM are provided free of chargeto a subcontractor for further processing. The items are copied to a subcontractorder. If the item is provided to a vendor, do not enter any material provisionindicator. Dependent requirements are generated for this item. If the item isalready at a vendor�s premises and is not provided by us, do enter an indicator.No dependent requirements are generated for this item. The indicator materialprovided by a customer is not currently active.

Note: This field is not SAP SCM relevant.

The Bulk material indicator defines a BOM item as a bulk material, whichis available directly at the work center (for example, washers or grease). Thedependent requirements of bulk materials are not relevant to materials planning.This means they are not taken into account for net requirements calculation.Therefore planning for bulk materials should be consumption-based. Bulk itemsby definition, will not be planned in SAP SCM. By setting this indicator the itemwill be excluded during the PPM generation.

The fields for Production storage location and Supply area are of no relevancefor SAP SCM. These are used in determining where components will be found orbackflushed during manufacturing execution.



Variable Sized ItemsIn manufacturing certain items, often times companies will have to use differentquantities of a material and it may not be the same usage in the manufacturing ofseparate end items. In the case of wire or sheet metal it would not make sense tocreate a material master for each length or dimension that might be inventoriedor consumed. In instances like this, we can use a variable size item category oneach BOM that the item impacts. By using a variable size item, we can define thequantity of usage based on formulas within the bill of material. For example inthe manufacturing of fluorescent lights, all lights will use the same type of wire.However, one model may require 12 centimeters of length, were as another modelmay only call for 6 centimeters.

Figure 123: Variable Size Item Data

Upon choosing to use variable size items you will identify the material master inthe item overview and attach a unit of measure usually PC. Upon selecting thevariable size item category, users will be required to enter in certain information.In the VS item tab, of the item details, we can use three fields to enter in valuesto calculate the usage, as well as a formula key that will calculate the field QtyVar-Sz item. The formulas and the size fields will NOT transfer to SAP SCM.The Qty Var-Sz item field will be transferred to the Variable consumption fieldin the logical component section on the PPM

Phantom Assemblies in SAP SCMA phantom assembly is a logical grouping of materials. A phantom assembly isusually created within engineering, in order to describe a number of componentseasily and manage them as a whole. The components in a phantom assembly areplaced immediately into the superior assembly. As opposed to this, componentsin an assembly are first assembled to produce the header material. After this theheader material is placed into the superior assembly. The phantom assembly is atool for engineering purposes

Example: The phantom assembly "set of wheels" contains the components "frontwheel" and "rear wheel". The front and rear wheels are placed immediately intothe "bicycle" assembly. The "light" assembly contains the materials "bulb" and"reflector". The light components are first assembled and then the light is attachedto the bicycle.



Figure 124: Phantom Assemblies

Phantom assemblies are used in SAP ECC to enable the simple structuring ofBOMs, the items typically do not physcally exist. You can see Phantom assembliesas parentheses around a group of components that are often used in conjunctionwith each other. This significantly reduces the amount of administration neededfor the master data. For changes to materials (for example, discontinued material)you only have to carry out the changes on one BOM. The changes have aneffect on all BOMs that the Phantom assemblies use. Phantom assemblies alsofacilitate component assignment since the components of a Phantom assemblyare assigned to the same operation. The same is true for the Phantom assemblyitself if you have not made an assignment for the components. During the BOMexplosion in an SAP ECC production order, the BOMs for Phantom assembliesare also exploded. The components of the Phantom assemblies become normalreservations, while the Phantom assembly itself is transferred to the order as anunplanned effective reservation. The components of a Phantom assembly areconnected in a hierarchy with the superordinate assembly.

The settings for phantoms can occur in three different places in the SAP ECCsystem. The highest level to determine a part as a phantom assembly is at thematerial master. In MRP 2 view, users can set an item to be a �phantom assembly�by setting the special procurement key. This means that this part at the plant levelwill not be manufactured and inventoried in that form. In addition there are twosettings that can be set in the bill of material for a component. In the details of thecomponent, under the MRP section users can use the explosion type or specialprocurement. The explosion type can switch the phantom assembly off for thisBOM, and it will create a planned order for the item. This over rides the materialmaster setting. Setting the special procurement key in the BOM to �phantom



assembly� means that when this item is used in a the relevant BOM, then it willbe treated as a phantom. The settings in the BOM have priority over the materialmaster since they are specific to a usage or manufacturing process.

For the transfer of the PPM from SAP ECC to SAP SCM the Phantom assembliesare also exploded into components, although the Phantom assemblies themselvesare not transferred. Each component is given a �component key� in SAP SCM. Nohierarchy information is assigned to the components of a Phantom assembly. Youhave a flat structure in the PPM. As a result there are significant differences in thehandling of a SAP SCM order in comparison to a SAP ECC production order.

Caution: It should be taken into account that a simple synchronizationof components during the transfer of a SAP SCM order to SAP ECC isnot possible if a Phantom assembly appears several times in the BOMof an end product. Data that should be redetermined by SAP SCM (forexample, requirements quantity, plant, storage location) can thereforenot be transferred to the SAP ECC order. Since it will be possible inlater processes to transfer components directly from SAP SCM into anSAP ECC production order, even if these do not exist in the assignedBOM in SAP ECC , this would lead to additional, double reservations. Ifthe calculated value of the Phantom assembly is smaller than the basicquantity of the Phantom assembly BOM and the number of componentsin the Phantom assembly is very small, the system produces the wrongvalues when calculating the required quantities for components in thePhantom assembly.

The following example illustrates this point: End product basic quantity: 1000Required quantity Phantom in end product: 120 Phantom assembly basic quantity:1000 Required quantity component in Phantom: 0.001 As decimal places are onlygiven to three figures for quantities, the system gives a quantity of zero (on thebasis that the result was 0.00012). Recommendation: In SAP ECC you haveto adjust the BOMs affected by increasing the base quantities and componentquantities.

Note: A possible work around for this item would be to create acompletely different phantom material and phantom BOM that is anexact copy of the first phantom occurrence. Then replace the secondphantom assembly with the new phantom assembly that has a uniquename (different than the first). By doing this the SAP SCM system will beforced to assign a different component key and a as a result the integrationof production and process orders should be correct.



Exercise 18: BOM Basics in SAP SCM

Exercise ObjectivesAfter completing this exercise, you will be able to:� Display and navigate a basic BOM in SAP ECC.

Business ExampleIn the filling of liquid detergent you require the use of a Bill of Material to identifythe necessary components. Therefore, you need to model the component structureof the ZAP-1## as follows:

� 4 pc ZAP-1## requires:� 4 pc CAP-1##� 4 pc BTL-1##� 4 pc T-LB-100� 1 pc T- Box-100� 12 liters T-FD1##� 1 g- Glue� Ink jet powder ink (Text item)

Task: BOM�s in SAP ECCIn order to produce your new product ZAP-1##, you will need to verify the billof material to support the filling of the this product. Display the bill in ECC inpreparation for transfer to SAP SCM. We will use several item categories andother planning elements to test how the transfer to SAP SCM reacts.

1. Display the production Bill of Material for ZAP-1## in plant 3100.

In the filling of liquid detergent you require the use of a Bill of Materialto identify the necessary components. Therefore, you need to model thecomponent structure of the ZAP-1## as follows:

1 cs of ZAP-1## requires:

4 pc CAP-1##

4 pc BTL-1##

4 pc T- LB-100,

1 pc T-BOX-100

12 Liters T-FD1##,

1 g GLUE




Ink is used in the Date coding of the bottle at the time of filling, but notconsumed.



Solution 18: BOM Basics in SAP SCMTask: BOM�s in SAP ECCIn order to produce your new product ZAP-1##, you will need to verify the billof material to support the filling of the this product. Display the bill in ECC inpreparation for transfer to SAP SCM. We will use several item categories andother planning elements to test how the transfer to SAP SCM reacts.

1. Display the production Bill of Material for ZAP-1## in plant 3100.

In the filling of liquid detergent you require the use of a Bill of Materialto identify the necessary components. Therefore, you need to model thecomponent structure of the ZAP-1## as follows:

1 cs of ZAP-1## requires:

4 pc CAP-1##

4 pc BTL-1##

4 pc T- LB-100,

1 pc T-BOX-100

12 Liters T-FD1##,

1 g GLUE




Ink is used in the Date coding of the bottle at the time of filling, but notconsumed.

a) SAP ECC Menu Path Logistics→ Production→ Master Data→ Billsof material→ Bill of material→ Material BOM→ Display


Field Name DataMaterial ZAP-1##

Plant 3100

BOM Usage 1 - Production

Alternative BOM 1

Select Enter

c) Verify the following data

Item ICt Component Description Quan-tity

Un

0010 L -Stock

CAP-1## 4 pc

0020 L -Stock

T-LB-100 4 pc

0030 L -Stock

BTL-1## 4 pc

0040 L -Stock

T-BOX-100 1 pc

0050 L -Stock

T-FD1## 12 L

0060 L -Stock

T-GLUE 1 g

0070 T - Text Ink JetPowderInk

1 pc

d) Select , to leave the BOM and return to the main menu.



Lesson Summary

You should now be able to:� Explain which fields in a BOM are relevant for planning and how they will

be transferred to SAP SCM� Explain how the following BOM functionality is transferred to SAP SCM� Create BOM in SAP ECC for later transfer to SAP SCM.



Lesson: SAP ECC Routings in the SAP SCM PPM

Lesson OverviewAs part of modeling a manufacturing environment, we must better understandthe use of Task lists, otherwise know as routings. Routings will be a criticalcomponent in ensuring the rigidness or flexibility of your manufacturingenvironment. In this particular lesson we will discuss the basic setup of a routingand what parts are integrated with SAP SCM.


� Explain which fields and functions in a routing transfer to SAP SCM.� Explain how the following Routing functionality is transferred to SAP SCM:

Business ExampleAssume your ZAP-1## can run through several different resources. In order toidentify all scheduling options you will map out all of the methods. Due to thelarge volume of production and the years of experience you have manufacturingproducts of this nature, you will need to model three general methods ofmanufacturing: High Speed; Medium Speed; and Slow Speed. In order tomanufacture the volumes needed you will utilize every possible manufacturingmethod in plant 3100. You have at your disposal 8 filling lines to pack out theZAP-1##. You need to model these three options as described in detail below:

High Speed: You have three high speed filling lines that will label, fill, cap andpack the bottles at 1,000 cases per hour. The filling operation will consist of onecontinuous filling step.

Medium Speed: You have four identical filling lines with slightly older technologyand will label, fill, cap and pack, at 750 cases per hour.

Slow Speed: Lastly, there is a very old set of production equipment that isextremely flexible and can run just about any product. A task list has been setup in plant 3100, which models this technique, which is common to all fillingproducts and runs at the same speed regardless of the product. This method willactually take several steps to manufacture the finished product. The bottles mustbe labeled on different equipment or by a vendor.

Routings in SAP ECCIn SAP ECC routings fall under the term task list.


SCM215 Lesson: SAP ECC Routings in the SAP SCM PPM

Task List:Describes a process-flow for executing a task that is not (yet) related to anorder. Task list objects include the header, operations or activities, materialassignments, production resources/tools, and inspection characteristics. Ifthe task list objects are given dates and quantities, an order is created. Thefollowing are types of task list:

� Routing� Reference operation set� Rate routing� Maintenance task list� Inspection plan� Standard network� Master recipe

Of all the types above only routings, reference operation sets, rate routings, andmaster recipes integrate with SAP ECC . A routing by definition is a descriptionof the production process used to manufacture plant materials or provide servicesin the production industry.

In ECC routings are the major integration point between for the productionplanning master data, as well as the integration point into other application areassuch as purchasing, sales, and cost accounting.

Figure 125: Routing Structure

As the slide depicts the routing will be linked to the material master at the�header�level of the routing. Each operation will be linked to the workcenter/resource for capacity and scheduling purposes. The bill of material (BOM)



can be linked to the routing to determine point of usage. In addition the routingcan be tied to quality management, but this will be for execution purposes only inregards to SAP SCM.

Figure 126: Routing Structure (2)

A routing is made up of a header, sequences, operations and sub operations. Eachone of these has certain control parameters that will relate to schedule. We willdiscuss each section in detail. Routings will be identified by their group, groupcounter, and plant. A material may have more than one routing, or a routingmay be used by more than one material.

Note: In SAP SCM, the PPM only supports one �header�material.As a result the concept of one PPM being used to model several differentmaterials is not possible. PPMs will support co-products but this ismodeling something completely different. For example I have threevariants of 3 liter Liquid detergent. They use the same routing and exactlythe same rates. In ECC we can model this using one routing, but in APOthis will be three different PPMs (all linked back to the same routing).

Routing GroupIdentifies one or more routings and groups routings from a logicalperspective. If a routing group contains several routings, they are defineduniquely by a group counter.

Group CounterIdentifies a task list within a task list group. Group counters can, forexample, be used to differentiate between task lists which belong to the samegroup, but which describe different processing sequences. A group counterin combination with the group key identifies a task list.



In this unit we will model several methods of creating PPMs.

Routing HeadersWhether creating routings for a specific material or a general purpose, we willhave to specify several pieces of information in the routing header. In SAP ECC, the most important fields are Status, Usage and Lot size. Although these areimportant to SAP ECC they will have no impact on the transfer of the routing andthe generation of the PPM, (unlike the BOM status).

Figure 127: Routing Header information

The Status and Usage, will however be used in the Plan Number in the SAPSCM PPM.

Note: Even though these settings are not relevant for the generation ofthe PPM, they will affect the execution of the plan that SAP SCM sendsback to SAP ECC .

The lot size also does not have an impact on the generation of the PPM. Users willget a warning message when creating the production version that lot sizes may notmatch the BOM lot size but there is nothing to prevent a miss match if users ignorethe warning. The PPM will be generated based on the lot size of the productionversion not the routing or the BOM.



SequencesThe sequence is a required element in the SAP ECC routing.

SequenceSequence of operations that are sorted according to operation number. Bydefining various sequences in routings or inspection plans, you can createstructures that are similar to networks, but less complex. The followingsequence categories are distinguished in routings:

� Standard sequence� Alternative sequence� Parallel sequence

Figure 128: Sequence Overview in the Routing

All routings are given a main sequence of 0. Here is where users will define themain flow of manufacturing through work center(s).

Alternate and Parallel SequencesDuring the modeling of any manufacturing process you must determine thesequence of events that result in a stockable item. Operations are used to describethe resource that will perform the work as well as the rate in which the work isdone. In the world of SAP ECC operations will be attached to a sequence. In SAPECC three such types of sequences exist: Main/Standard, Parallel, or Alternative.



Figure 129: Alternative and Parallel Sequences in SAP ECC

Typical manufacturing process require a set of activities to occur in a sequence.This means that you could not start the second activity until the first activity isdone. This would be considered a start - finish type of relationship. Dependingupon the industry you are in, or the products you are making, certain activitiesmight have to occur simultaneously, or in parallel. In order to schedule such asituation properly, from a modeling perspective you must make sure that definesuch a parallel relationship between the affect activities.

For example: In the manufacturing of scissors, you need a left and right handle.The first activity would be to stamp the right handle. It only makes sense at thesame time to stamp the left handle then assemble them in the second activity.

Parallel sequences in SAP ECCAs indicated earlier all operations in a routing in SAP ECC are attached toa sequence. The standard sequence is a linear series of operations, orientatedon the production process, from which parallel and alternative sequences canbranch off. The system automatically creates the standard sequence, whenyou create a routing, this is often called �critical path�. You create parallel oralternative sequences, if you do not want to execute all the operations in a routingconsecutively. The standard sequence serves as a reference sequence for paralleland alternative sequences. This is sequence 0.

A parallel sequence is a linear sequence of operations that is parallel to a sequenceof operations in the standard sequence. A parallel sequence enables you to processseveral operations at the same time. A parallel sequence is carried out at the sametime as the corresponding section in the standard sequence. It is a special form of



overlapping operations. Parallel sequences can be referred to as Start - Start or End- End relationships. You can create parallel sequences in routings and rate routings.You cannot create them in reference operation sets or reference rate routings.

Figure 130: Parallel Sequence in SAP ECC

To create a parallel sequence, from within the SAP ECC routing, menu path: Goto→ Sequence overview or choose the sequence overview icon. When creating aparallel sequence you must choose which sequence you wish to branch the parallelactivities off of. In addition you must recognize when the parallel activities branchoff and ultimately return to the main sequence. As of SAP ECC release 4.0, userscould branch a parallel sequence off of another parallel sequence. In addition insequence headers users need to identify how to schedule the parallel operations tothe other sequence if the duration will be different. In SAP ECC the alignmentkey is used to adjust any differences in the scheduling of the parallel sequence andthe main sequence by deciding to schedule from the start of the main operation orthe end of the main operation.

Note: The alignment key is of no relevance during the transfer of therouting to the SAP SCM PPM



Figure 131: Parallel Sequences in Scheduling

Once the sequence header is created, you will have to enter operations and theoperation details as you would with a typical routing.

Alternative SequencesIn certain industries, like consumer products, it is very common to have multipleproduction lines that can produce the same set of products. It is important todistinguish the difference in manufacturing methods; do the methods use the samebill of material, can we substitute one machine for another, or several machines orpeople for one machine.

Figure 132: Alternative sequences in SAP ECC

In SAP ECC when one operation can be substituted by one or more operations,it is called an alternative sequence. In the routing a main/standard sequenceidentifies the true flow of the production process, but sequences can be used to



identify when other resources can be used as a substitute for the main sequence.These alternative sequences were typically lot size dependent and could at timesbe automatically substituted if such a scenario occurred during planning. In SAPECC alternative sequences could substitute several operations for one operation inthe main sequence. For example, with a very small production quantity, instead oftaking time to setup a high speed machine, the use of a group of labors performseveral steps may be slower, but more cost effective.

Alternative sequences could often have been used to model high speed productionwere routings only had one operation, but had several similar or identical machinesthat could perform the same task. Another alternative to this would have been tocreate multiple routings to support this.

Note: Ultimately, alternative sequences could only be used if the same billof materials was used in either the standard or the alternative sequences.If alternative resources required a different set of components, this wouldbe modeled as an Multiple (alternative) BOM and a separate routing. Theresult in SAP SCM would be two PPMs.

The ultimate goal in modeling is to have as few PPMs as possible for a materialunless the component makeup calls for a separate PPM. By using alternativesequences you can generate Alternative modes in a single PPM.

Caution: The use of Multiple PPMs may not guarantee an�optimal�schedule in SAP SCM. During the PP/DS planning runs, thesystem will evaluate all relevant PPMs. The result will be a feasibleschedule. During PP/DS optimization, alternative PPMs will not beconsidered as viable options to obtain a truly feasible schedule. Theoptimizer will however, consider the use of alternative modes and movethe order from one resource to another.

OperationsOperation OverviewWithin each sequence users can define one or more operations. Within eachoperation users can define which work centers/resources are used, the rate atwhich resources will be used or consumed during production, and other controlparameters.



Figure 133: Operation Overview in a Routing

The picture above is a view of the routing overview. This identifies all the stepsthat a product will go through in a particular sequence in order to be manufactured.Typically each operation has a work center assigned to it. Work centers may beused more than once in a routing and can be used in more than one routing.

Figure 134: Sub-Operations in SAP ECC Routing

In addition to operations routings can also have sub operations. A sub-operationis subordinate to an operation. Sub-operations are used, for example, to allocatepersons and machines to an operation for which several persons or machinesare needed at the same time. A sub-operation can be costed, but it cannot bescheduled. Often times cost accounts need more detail in a routing to ensure



proper product costing. However, this could cause considerable overhead andwork for planning and manufacturing. Often times sub operations allow acompromise between costing and manufacturing departments.

The PPM in SAP SCM is structured slightly different than the routing in SAPECC . In SAP SCM most of the control parameters and information regardingmanufacturing will be centered around the activity. Therefore operations willremain operations in the SAP SCM PPM but depending upon how many activitiesare happening in an operation (i.e. setup and processing), the result may be morethan one activity.

Note: If a routing in SAP ECC contains sub-operations that are relevantfor planning they will be created as an operation in the SAP SCM PPM.They will be given the PPM Operation Type 0 - PP Operation.

Operation detailsMost of the detail for manufacturing and costing is stored in the details of eachoperation/sub-operation. Not all of the parameters in the operation are transferableto SAP SCM at this time nor are some even relevant since SAP SCM is a planningsystem only. We will break each section of the operation down and discuss anyrelevance the various fields will have on the integration with SAP SCM.

Operation Data

Figure 135: Operational Data for Routing Operation

The most critical part of the routing is the work center and the control key. Aswe know, the work center will transfer to SAP SCM as a production resource.When the work center is used in conjunction with a routing, this will now berecognized as a mode in SAP SCM.



Control KeyKey which specifies how an operation or a sub-operation is to be processedin functions such as orders, costing or capacity planning. The followingare examples of processing types managed by a control key for operationsand sub-operations:

� Scheduling� Costing� Capacity planning� External processing� Completion confirmation� Printing� Rework

Figure 136: Control Keys in the Routing



In the graphic above you can see two control keys that were configured inSAP ECC . PP01 is used for manufacturing since it can be scheduled and willhave capacity requirements generated. PP03 is one that would be used by costaccounting or for informational purposes.

� There is no work center in the SAP ECC operation� Any operation that does not have a control key or a control key that is

relevant for scheduling *� Operations without formulas in the work center are not sent to SAP SCM� Operations without times are not sent to SAP SCM if they do not have any

setup information (setup group or setup key) **� The work center in the operation is not in any active integration model.

Note: *If the rework indicator is also set, the operations/phases that arerelevant to scheduling are not sent to SAP SCM

I

Note: ** If the setup information (setup group or setup key) is specifiedin an activity or in a phase and this setup information is not maintainedin SAP SCM , error message �setup group or setup key does not exist�is issued during the PPM transfer. In this case, first maintain the setupinformation in SAP SCM and then reactivate the integration model.

Operations without times can be sent to SAP SCM , however, if theparameter FLG_TRANSFER = �X� is set in user exit FUNCTIONEXIT_SAPLPGS1_002 -> INCLUDE ZXPGSEU02.

Lastly the text will be transferred over to SAP SCM as the operation description.In SAP ECC the operation description supports only one language. In SAP SCM,the operation description field can support multilingual descriptions.

Standard ValuesThe standard values are typically one of the most important fields in the routingas it relates to the SAP SCM PPM. Within the work center a standard value keyhas been defined that controls what activities can be measured at a work center,in a routing. These standard values/activities support the calculation of capacityrequirements, scheduling duration, and costing per activity. Not all standardvalues will be relevant for SAP SCM.



Figure 137: Standard Values in the Work Center

Within the scheduling tab of the work center, formulas are identified to instructSAP ECC on how to calculate setup, processing/manufacturing, tear down, orother time. Only those standard values used in these formulas are relevant forSAP SCM.

Figure 138: Standard Values in the Routing

None of these fields transfer to SAP SCM during the transfer and the PPMGeneration. However, the base quantity and the standard values, used inconjunction with the formulas in the work center, will populate the duration fieldsin the PPM.



Figure 139: Scheduling and Activities

The operations of a production process model include activities where you willfind a description of the actual process steps for the operation. During the transferof an SAP ECC routing, the system creates the activities of the SAP SCM PPMoperation relevant to the SAP ECC operation. A work center is assigned to anSAP ECC operation. The scheduling formulas stored in the work center definethe duration from the allowed time elements in the routing. The setup, processingand tear down of an SAP ECC operation are all displayed in SAP SCM activities.During the CIF transfer of a routing, the scheduling formulas of the relevant workcenter are also interpreted, in order to create the corresponding activities in thePPM with their durations.

Note: The formula for internal processing (network) is not taken intoaccount in the routing. The standard values of the routing operations arealways calculated using the setup, processing and teardown formulas.

The activities of the PPMs include a mode, which specifies a primary resource(scheduling resource). These primary resources correspond with the capacityselected in the work center as a scheduling basis. Other possible availablecapacities that are not relevant for scheduling (Capacity tab in work center ) aremodeled as secondary resources in the PPM. These secondary resources aresubordinate to the primary resource. The capacity requirements of the individualprocess steps result from the capacity formulas defined in the work center andthe time elements of the routing. The system stores them in SAP SCM PPM asvariable and fixed durations. The variable durations relate to the output quantityof the header material, which is derived from the base quantity in the header of theSAP ECC BOM. The durations are specified in the SAP SCM activity, in the baseunit of measure of the SAP ECC capacity relevant for scheduling.



Inter-operation timesDepending upon the type of manufacturing that is performed, some manufacturingprocesses may require the use of float times throughout the process to modelthe normal lead time for manufacturing. Within both the work center and theoperation details of a routing, users can define floats to model various anomaliesthat will be encountered on the shop floor.

Figure 140: Inter-Operation Float Times

There are three different types of inter-operation float: Queue time, Move time,Wait time.

Queue TimeTime between the end of the move time and the start of the executiontime. The queue time is a float that can be used to compensate for delaysin the production process. It can be maintained in the work center or in theoperation. Users can define a minimum and a maximum (standard) amountof time.

Move TimeThe time needed to move a material from one work center to another. Themove time is part of the inter-operation time. This can be maintained in thework center via the Location group, in conjunction with the move timematrix in the IMG. Users can maintain both a minimum and a maximum time.

Wait TimeTime between the end of the execution time and the start of move time. TheSAP System distinguishes between maximum wait time and minimum waittime. In scheduling, only the minimum wait time is taken into account. Themaximum wait time is only used for information.



As of Release 3.1, of the three elements of inter-operation time, only two wererelevant. The queue time, which is relevant to the CRP functionality in SAP ECCdoes not transfer to SAP SCM.

Note: As of Plug-In Release 2003.1 (if you are using SAP SCM Release4.0 or higher), the queue times of an operation are also taken into accountas floats in the integration of production orders (both with and withoutthe PPM). To achieve this, additional relationships are generated andthe relationship attributes are adjusted so that they correspond with thisnew function. As a result, there is a certain complexity to calculatingrelationship durations and implementing them in production orders andSAP SCM manufacturing orders, one that is not always easy to understandat first glance. Since the relationship durations, among other things, aretaken into account when determining the dates for operations in an SAPSCM manufacturing order, these also generally affect the process ofscheduling the manufacturing order in SAP SCM.

The move time and wait time will be transferred to SAP SCM. The move timecan be maintained in the routing or in the work center, and of the two, the routinghas a higher priority. Within the work center users can define a location group inthe scheduling view of the work center.

Figure 141: Move Time Matrix in Work Center

This grouping points to a table in the IMG, where depending upon the locationgroup of the succeeding work center, users can define move times betweenlocation groups.

Inter-operation times will transfer as follows:



SAP ECC Field SAP SCM FieldStnd Queue Time Minimum-related Processing timeMin. Queue Time Minimum-related Planning-timeStnd. Move Time Minimum-related Processing timeMin. Move Time Minimum-related Planning-timeMax. Wait Time Maximum IntervalMin. Wait Time Minimum-related Processing time

Caution: If both move and queue times are used, the values will be addedtogether during the transfer

Caution: If the wait time is combined with either queue or move time, thequeue and move times will be ignored and The field Planning-relatedMinimum Interval will be unavailable for input.

Reduction StrategiesWhen building a routing, users will list the operations in the sequence in whichthe events will happen. By default, the system is set to process each operationcompletely prior to moving to the next operation. In addition each order will beset to use only one capacity at a time in order to complete each task. Within thedetails of each operation users can specify that these defaults are not how theywish to model a particular manufacturing process.

Note: Reduction Strategies are not supported in SAP SCM.

SplittingIn the initial stages of a software implementation, project teams will decide howto model their manufacturing resources or work centers. Often times companieschoose to group together machines or people under one work center using�multiple individual capacities�. Typically this methods is chosen if the utilizationrate of the machine does not warrant much attention and there is no need toperform detailed or capacity scheduling.



Figure 142: Multiple Capacities in the Work Center

It makes sense from a cost perspective to have each order run on only one machineif the machine requires costly setup time. Therefore, production planners intendto use only one individual capacity, which is the default setting. However, dueto their complexity or large volume with certain products, it may make betterbusiness sense to plan on running orders on more than one capacity.

Figure 143: Individual capacity and operation splitting



Within the details of the operation users can specify that splitting and operationalquantity across multiple capacities may make sense. If such a case exists select theRequired splitting indicator and include the No. of splits. In regards to SAPSCM these settings will transfer to the Capacity consumption section of the PPM.

Note: If using multiple individual capacities the work center formulasfor scheduling must reflect this. In the transfer to SAP SCM the useof multiple individual capacities will be used to calculate the Variableduration for scheduling and the variable bucket consumption.

Figure 144: Splitting results in SAP SCM

Another option is to have the planning run determine the minimum number ofsplits by using theMinimum processing time or economical splitting.

Note: Currently this functionality is not supported in SAP SCM and willhave no affect on the transfer of data.

Overlapping Operations in the ECC RoutingAs mentioned earlier, while modeling several operations in one sequence, thedefault setting is to consider that the entire operation quantity should be completebefore moving to the next operation. However, within each operation in SAP ECC, settings are available to move each item as it is completed to the next operation.



Figure 145: Overlapping Operations in SAP ECC

These settings in the SAP ECC operation would allow a user to model a continuousproduction or allow some overlapping of operation during the manufacturingprocess.

As of SAP SCM 4.0, the SAP ECC overlapping functionality can now be modeledin SAP SCM.

General Data in the Operation DetailOne of the last sections of the operation that integrates with SAP SCM is theGeneral Data section. The majority of these fields do not relate to SAP SCM, butmore towards the execution of the operation on the shop floor. In the case ofoverlapping operations, only the "Required overlapping" or "Continuous flowproduction" settings are taken into account. Furthermore, only the minimumsend-ahead quantity, and not the minimum send-ahead time, is taken into accountin the integration.

Note: The "Optional overlapping" option is not supported.

For two operations to overlap in the SAP SCM manufacturing order, you mustfulfill the following prerequisites:

� Both operations are SAP SCM-relevant..� Both operations have a processing time greater than zero

You can only achieve an overlap between the produce activities of twoimmediately consecutive operations. By definition, this connecting point isdefined from the produce activity for operation 10 to the produce activity foroperation 20. A minimum send-ahead quantity is not necessarily a prerequisite foroverlapping operations. When a minimum send-ahead quantity is zero, the startdates of the produce activities of operation 10 and 20 are in parallel.

If you fulfill all of the aspects listed under the prerequisites and if operation 20 inSAP SCM is the subsequent operation to operation 10, both a scheduled start-startrelationship and a scheduled end-end relationship are generated in the SAP ECCoutbound between the produce activities for operation 10 and operation 20. Since



the relationships are scheduled with an overlap, the wait times in overlappingoperations cannot generally be taken into account. All operations that have the"Required overlapping" or "Continuous flow production" indicator set as well asthe subsequent operation belong to an overlap sequence.

The production time for the minimum send-ahead quantity is taken into accountinto the duration for the relationships used (in addition to the move time and queuetime). The production time is calculated using the following formulas:

� using the following formula parameters:

� DURMW = Production time for the minimum send-ahead quantity� MINWE = Minimum send-ahead quantity� DURPROD = Net duration for the processing operation segment� MGVRG = Operation quantity of the operation

� Start-start relationship (SS relationship): DURMW = [MINWE(operationn) * DURPROD (operation n)] / MGVRG (operation n)

� Finish-finish relationship (FF relationship): DURMW =[MINWE(operation n) * DURPROD (operation n+1)] / MGVRG (operationn+1)

When calculating both the process-related and planning-related minimum intervalfor overlapping operations your options are :

� The process-related minimum interval for the relationship corresponds to thetotal time from the:

Production time for the minimum send-ahead quantity + (the minimummove time + minimum queue time)

� The planning-related minimum interval for the relationship correspondsto the total time from the:

Production time for the minimum send-ahead quantity + (the standard movetime + standard queue time)

Note: For an overlap, maximum intervals are ignored.

All operations in a continuous flow production sequence are extended using thelongest production time. As a result, all operations in this sequence have the sameproduction time. In PPM integration, note that the unit defined in the capacityheader of the work center (base unit of measure for the work center capacity) andassigned to the operation with the longest processing time is used as the time unitin the SAP SCM-PPM. Here note, in particular, that the production time of anoperation of a continuous flow production sequence is also extended if this is equalto zero (however, a prerequisite here, is that the operation must have at least oneother operation with a time other than zero and is therefore SAP SCM-relevant).



Figure 146: General Data in the Operation Details

For each operation, you an model how much scrap will occur at each step of theproduction process. This method is more exact than using assembly scrap.

SAP ECC Field SAP SCM PPM FieldScrap % in Scrap as a percentage

The scrap factor is transferred to SAP SCM exactly as it is in SAP ECC , unlikethe assembly scrap that undergoes a calculation. Unfortunately, the operationscrap cannot be taken into account in the lot-size calculation. The operation scrapis only calculated for the plan explosion. At this time, the lot size is already fixed.You cannot adjust the lot size afterwards (this entails a risk of endless loops orimpairs performance).

Caution: In SAP SCM, the assembly scrap is interpreted as additionalscrap to the operation scraps from the PPM which occurs at the end ofthe production. Assembly scrap and operation scrap are both taken intoaccount. The overall scrap is the total of the assembly scrap and theoperation scrap. In SAP SCM, the operation-based scrap factors from thePPMs are also taken into account during a planning run. This means thedependent requirements will be increased during the PPM explosion.

Note: To prevent the transfer of operation scrap from SAP ECC toSAP SCM , use the enhancement (user exit) APOCF012 functionmodule EXIT_/SAPAPO/SAPLCIF_PPM_001 must be implementedin the SAP SCM system. The field �SCRAP� must be initializedin all entries of the table IT_CIF_PLANACT_X with the structure/SAPAPO/CIF_PLANACT_X.

Setup Groups and Setup Keys



The sections that are relevant to SAP SCM relate to the setup times that an ordermay incur based on the type of product it is succeeding on the shop floor. Outof this section, only the fields Setup group Category and Setup Group Key willintegrate with SAP SCM. These two fields are defined in the IMG in SAP ECC. These fields in conjunction with the setup matrix in the IMG will allow usersto model a variable setup time based on the production sequence on a particularwork center. The Two fields Setup group category and Setup group key willtransfer to the SAP SCM PPM at the operational level, not the activity level,to the Setup group/key field.

Note: The IMG table values for Setup keys, setup groups, and setupmatrices cannot be transferred from an SAP ECC System by means of anintegration model. These objects have to be manually maintained in SAPSCM. The format is different, in SAP SCM they are �Master data�andin SAP ECC they are configuration data. Setup keys, setup groups andsetup matrices can be transferred, however, from one SAP APO system(for example, a test system) to a different SAP APO system (for example,a productive system), using reports /SAPAPO/SETUP_GROUP_COPY(setup groups and setup keys), and /SAPAPO/SETUP_MATRIX_COPY(setup matrices).

Figure 147: Setup Matrix integration in SAP SCM

First, the setup master data in SAP SCM is maintained, then you transfer theproduct masters and resources from SAP ECC to SAP SCM. As soon as theresources are in SAP SCM, you enter the setup matrix in the resource master,which you want affected resources to use. (Setup matrices in the resource master



are not transferred from the SAP ECC work center, since there is no equivalentfield. In SAP ECC all values are minted in one matrix (global). After the setupmatrix is maintained in the SAP SCM resources, you can start to transfer the SAPECC routings. The setup group keys (for example, white) are automaticallytransferred from the SAP ECC routing (as master data), to the correspondingoperation of the SAP SCM PPM. In the SAP SCM PPM, a setup time is nolonger displayed. The setup time in SAP SCM is always determined dynamicallyfrom the setup time matrix.

Figure 148: Setup Matrix in SAP ECC and SAP SCM

The setup matrix must contain all setup transitions that can occur at the resource.However, you do not have to define each setup transition explicitly. Using anasterisk (*), which you enter in a setup transition instead of a setup group, youcan define general setup transitions in the setup matrix. Thus the * becomesthe rule for transitions between keys within a group. Any exceptions to the rulewould be listed line by line. However, the asterisk (*) only replaces the setupgroups that you also use in the setup matrix explicitly to define setup transitions,and not all setup groups that you defined for the location Using **, stands for anygroup and key combination.

Example: Using the setup groups A, B, C and the setup key a, you have definedthe following setup transitions in the setup matrix: AB, AC, Aa. Using a setuptransition ** in the setup matrix, you include the following setup transitions: AA,BA, BB, BC, CA, CB, CC. These are the missing combinations for the setupgroups used explicitly in the setup matrix. If you have also defined the setup



groups D, E and F in the location, setup transitions with these setup groups arenot included by the generic setup transition **. By entering a setup transition *a,you are including the following setup transitions: Ba, Ca. These are the missingtransitions for the setup groups used explicitly in the setup matrix according tosetup key a.

External ProcurementIn any given industry materials or activities are performed by other plants/locationsor vendors. This is called external procurement. This type of process would bedealt with through the SAP ECC procurement module. External procurementcan be handled in several ways.

Figure 149: External Procurement in the SAP ECC Routing

If you choose to use a non stock item without a material master, then the purchasinginformation is stored within the routing step. This type of process is NOTmodeled in SAP SCM. Due to the fact that SAP SCM allows plants and vendorsto be modeled similarly, a new process takes shape in SAP SCM to perform thisfunction. The sub-contracting process will be addressed in another lesson.



Exercise 19: Routing Basics in ECC

Exercise ObjectivesAfter completing this exercise, you will be able to:� Display and navigate a basic routing in SAP ECC.

Business ExampleProduct ZAP-1## can run through several different resources. Three generalmethods of manufacturing are available: High Speed; Medium Speed; and SlowSpeed. These three options have been modelled as described below:

High Speed: Line Fill-1## is your most efficient line. It can produce 1,000 casesper hour. The filling operation will consist of one continuous filling step.

Medium Speed: Line Fill-4## represents your second fastest option, at 750 casesper hour. Typically most requirements will be run through one line, but if the needarises for large orders you can run more than one line (10,000 2 lines)

In order to support the just in time scheduling techniques we must allocate thecomponents used in the filling process to their appropriate steps. Allocate the capand the liquid to the first operation in the main sequence.

Slow Speed: Lastly, there is a very old set of production equipment that yourZAP-1## liquid detergent can run on. Routing group SCNA21 in plant 3100,models this technique, which is common to all filling products and runs at thesame speed regardless of the product. This method will actually take several stepsto manufacture the finished product.

Task 1: High Speed Filling LinesYour company has recently purchased a high speed filling line to increase theoutput of your detergent production. This filler runs at a rate of 1,000 cases perhour. The filling operation will consist of one continuous filling step. In additionyou have calculated an average set up time of four hours. Display the standardrouting Group: HDL-## (Heavy Duty Laundry), that models Fill-1## .

1. Display a standard routing HDL-##, modeling your new filling line Fill-1##(Line 1 Label/FIll/Cap/Pack). This line will produce ZAP-1##, at a rate of1,000 cs /hour, and require a four hour setup time. The routing is valid forall lot sizes in cases (cse).




Task 2: Medium Speed Filling LinesYou have four other filling lines that run slower than your high speed lines. Sincethese lines typically have excess capacity you have created only one work centerto support this. Display the standard routing for ZAP-1## in plant 3100, that willmodel your Fill-4## work center that can fill at 750 cases per hour. In additionto the filling lines you will need to label the bottles on-line with another labelingmachine T-Label. The labeling of the bottles will happen in parallel with thefilling lines, and can label at 4,000 bottles per hour.

1. Display standard routing to model your four filling lines Fill-4##, with anoperation description of Fill/Cap/Pack which produces ZAP-1##, at a rate of750 cs /hour with set up time of 6 hours.

Task 3: Slow Speed Filling Lines - Optional (timepermitting)In addition to the high speed filling line you have already modeled, you havea very old, but flexible, production line your ZAP-1## can run on. Due to itsflexibility it can fill any type of bottle that your company makes. However, itsspeed is limited to 300 cases per hour for any product. Unlike the other fillinglines, due to its slow pace you must model each step of manufacturing separately,Labeling, Filling, and Case packing. Even though we have modeled separateoperations, ensure the scheduling is done in a continuous manner.

Routing group T-SCNA21 has already been created to support this manufacturingprocess and materials have been assigned to the routing group..

1. Look at the operation overview section for your standard sequence and verifythe following operations are modelled for the product to be done using theolder production line.

OpNo.

WorkCenter

CtrlKey

Descrip-tion

BaseQuan-tity

Setup Ma-chine

La-bor

2. What are the validity parameters for this routing?



Solution 19: Routing Basics in ECCTask 1: High Speed Filling LinesYour company has recently purchased a high speed filling line to increase theoutput of your detergent production. This filler runs at a rate of 1,000 cases perhour. The filling operation will consist of one continuous filling step. In additionyou have calculated an average set up time of four hours. Display the standardrouting Group: HDL-## (Heavy Duty Laundry), that models Fill-1## .

1. Display a standard routing HDL-##, modeling your new filling line Fill-1##(Line 1 Label/FIll/Cap/Pack). This line will produce ZAP-1##, at a rate of1,000 cs /hour, and require a four hour setup time. The routing is valid forall lot sizes in cases (cse).

a) Menu Path: Logistics→ Production→ Master Data→ Routings→Routings→ Standard Routings→ Display

b) Enter the following Parameters in the initial screen:


Plant 3100

Group HDL-##

ENTER

c) The Display Routing: Overview is displayed.

d) Choose the routing with group counter 1 and select the sequence

overview

e) Choose the standard sequence (0) and select the operation overview

f) Verify the following data is maintained for operation 0010.

Field Name DataWork Center Fill-1##

Base Quantity 1000

Operation unit CSE

Setup 4 H

Machine 1 H




g) Select the sequence overview again

h) Choose an alternative sequence and display the operation details.Verify that the alternate sequence can run the product on a differentwork center.

i) Exit to the main menu.

Task 2: Medium Speed Filling LinesYou have four other filling lines that run slower than your high speed lines. Sincethese lines typically have excess capacity you have created only one work centerto support this. Display the standard routing for ZAP-1## in plant 3100, that willmodel your Fill-4## work center that can fill at 750 cases per hour. In additionto the filling lines you will need to label the bottles on-line with another labelingmachine T-Label. The labeling of the bottles will happen in parallel with thefilling lines, and can label at 4,000 bottles per hour.

1. Display standard routing to model your four filling lines Fill-4##, with anoperation description of Fill/Cap/Pack which produces ZAP-1##, at a rate of750 cs /hour with set up time of 6 hours.




Plant 3100

Group HDL-##

ENTER

c) From the Routing overview screen choose the routing group for the

medium speed lines and select the sequence overview .

d) Select the standard sequence and display the operation details. Verifythe product is modelled to run at 750 cs/hr.

e) Exit to the main menu.




Task 3: Slow Speed Filling Lines - Optional (timepermitting)In addition to the high speed filling line you have already modeled, you havea very old, but flexible, production line your ZAP-1## can run on. Due to itsflexibility it can fill any type of bottle that your company makes. However, itsspeed is limited to 300 cases per hour for any product. Unlike the other fillinglines, due to its slow pace you must model each step of manufacturing separately,Labeling, Filling, and Case packing. Even though we have modeled separateoperations, ensure the scheduling is done in a continuous manner.

Routing group T-SCNA21 has already been created to support this manufacturingprocess and materials have been assigned to the routing group..

1. Look at the operation overview section for your standard sequence and verifythe following operations are modelled for the product to be done using theolder production line.

OpNo.

WorkCenter

CtrlKey

Descrip-tion

BaseQuan-tity

Setup Ma-chine

La-bor

10 Labeler PP01 LabelBottles

500pc

8 hrs 1 H

20 Filler PP01 Fill and CapBottles

300Cse

1 H

30 CasePckr PP01 PackBottles intoCorrugatedcase

750Cse

1 H


b) Enter T-SCNA21 in the Group field and select .

c) Verify the operation details from the table above.

2. What are the validity parameters for this routing?

a) Select Header

b) This routing is valid for lot sizes of 1 to 20,000 cases, and is validto 12/31/9999.

c) Exit the routing and back to the main menu.



Lesson Summary

You should now be able to:� Explain which fields and functions in a routing transfer to SAP SCM.� Explain how the following Routing functionality is transferred to SAP SCM:


SCM215 Lesson: PPM in SAP SCM

Lesson: PPM in SAP SCM

Lesson OverviewIn this lesson we will explore the Production Process Model (PPM) in SAP SCM.During this lesson we will generate several PPMs, change existing PPMs andnavigate the PPM to become familiar with it�s structure. In addition, we willinvestigate the functionality that comes with the SAP SCM PPM that is notavailable in the SAP ECC BOM and Routing.


� Explain the need for production versions� Create production versions� Transfer a BOM and a Routing to SAP SCM� Navigate the PPM

Business ExampleAssume the master data required for a production process at your company hasbeen created in your company�s execution system SAP ECC . You now need totransfer the data to your company�s planning system (SAP SCM). As a result ofthe transfer PPMs have been generated. You will review the results of the transferand add SAP SCM specific data to the PPM.

PPM in SAP SCMThe Production Process Model (PPM) is a combination of the SAP ECC Bill ofMaterial, Routing, and Work Center. The PPM is very similar in nature to the SAPECC Master Recipe, in that it contains both the BOM and Task List. As a resultof using the CIF technology the SAP ECC BOM and Task list, will generate aProduction Planning Detailed Scheduling (PP/DS) PPM. By generating a PP/DSPPM, users have created a very detailed model of their manufacturing process.These PPM will have a �usage� type of P- PP/DS.

By its title the PPM describes a specific process of manufacturing. This meansthat the PPM will have one main �header�material, and several input materials.The PPM is specific to only one bill of material, i.e. component structure and aspecific method of production activities and resources. Unlike the task list in SAPECC , which can be used by many materials, the PPM models a PROCESS andtherefore is specific in nature. The PPM can have other �output�materials. Thesewould be modeled as co-products or by-products in in SAP ECC .



Example, you manufacture pepper. The first step in the process is to shake andfilter the pepper by size. One product, raw pepper goes, in. As it goes through theshakers and filters, the pepper is separated by the size of the granule. The result ofthe shaking process is several different size of pepper that will be used in eitherkitchen preparation such as soup, or pepper that will go into the pepper shaker youfind on your table. Two different output materials that used the same process.Whether you need pepper for cooking or to be put on prepared food, you need thesame PPM, the same input material, and use the same process.

Lastly as a result of the CIF integration, the description of the routing is transferredas the plan description text. The description of the PPM is transferred as the PPMtext. Outside the PPM maintenance, the users will only see the PPM text.

Figure 150: PPM Plan Number

The remaining fields in the Plan section are SAP SCM only fields. All of thecost fields are used to help in source determination, if more than one opportunityexists for supplying a material.

Note: The Supply Network Planning (SNP) optimizer takes into accountthe single-level variable costs. Capable-To-Match (CTM) engine,considers both the multi-level fixed and variable cost. The SNP heuristictakes into account the multi-level fixed costs. PP/DS will only considerthe Multi-level fixed and variable costs.

The costs in the Plan cannot be transferred through the CIF due to the fact thatthe cost of the BOM and routing are not stored in the material master, BOM,or routing. The cost of the associated objects is stored in the product costingmodule of SAP ECC and cannot be extracted via the CIF. The determination ofcosts will be discussed in the relevant class that discusses how the cost will beused in planning.



Figure 151: Structure of PPM in SAP SCM

The PPM is structured in four segments, the Plan number, Product PlanAssignment, Operations, and Activities. The plan number will contain SAP SCMspecific data that is used in source determination. The Product Plan assignmentwill contain additional source determination information that will be SAP SCMspecific as well as information from SAP ECC . The operation and activityinformation will be comprised of data from the SAP ECC BOM and Routingand SAP SCM specific functionality.

Plan NumberThe Plan number for PPMs that were generated as a result of the CIF, are systemgenerated. These plan numbers are only utilized in the maintenance of the PPM.Upon reviewing transactional data, users will only see the PPM name. The plannumber will identify which pieces of master data were used to create the PPM as aresult of the CIF integration.



Figure 152: Task List Description in SAP SCM

The first character of the PPM will identify the type of task list that was used asthe sources of the manufacturing instructions:

� 0 - Standard Network (PS)� 2 - Master Recipe� 3 - Rough Cut-Profile� A - General maintenance task list� E - Equipment Task list� N - Standard Routing� M - Reference Rate Routing� R - Rate Routing� S - Reference Operation Set� T - Task list for Functional Location

The next eight characters will be from the group number of the task list in SAPECC . The group number can be automatically generated or can be user-defined.The next two characters, will be the group counter of the group number that wasused to generate the PPM. The next four characters will be from the productionversion that was used to generate the PPM.

Note: If one routing is used in several production versions and/or hasmore than one product assigned to it, the plan number in SAP SCMincludes the material number and plant.

(For example, for material A in plant 1000: N500077010001A1000)



As the PPM is updated by changes on the SAP ECC side, the costs will remain asSAP SCM data and not be affected by any of the changes.

Product Plan AssignmentThe product plan assignment contains further data relevant for sourcedetermination. The product plan assignment can be accessed by choosing the

icon.

Figure 153: Product Plan Assignment

The Product plan assignment section contains the PPM name. This name isgenerated internally by SAP SCM and will contain similar information thatthe plan number has contained, but will contain the material number of theparticular output product. For every output product modeled in the PPM, whetherit be the �header material�or a co-product, each material will be given a PPMname. Additionally, the production version description transfers as the PPMdescription. The Logical component indicates the output product or the headermaterial from the BOM.

The from and to, dates are transferred from the SAP ECC production version, andSAP SCM assigns the time, by default 00:00:00 as the from time, and 23:59:59 asthe end time. The location field comes from the location of the Material masterfrom which the production version was derived.

The lot sizes are derived from the lot size of the production version and aretransferred accordingly. You define a lot size interval using the minimum andmaximum lot sizes. The use of the lot size interval depends on the application, asfollows:



Interactive planning, and planning with heuristics in SNP and in PP/DSWith the lot size interval, you specify for which order quantities theproduction process model (PPM) can be used if you are planning interactivelyor with heuristics in Supply Network Planning (SNP) or in ProductionPlanning and Detailed Scheduling (PP/DS). The system can only use aPPM to create an order if the order quantity is between the minimum andmaximum lot sizes.

� The minimum lot size is the smallest quantity that can be producedwith this PPM.

� The maximum lot size is the largest quantity that can be producedwith this PPM.

SNP OptimizerUsing the lot size interval, you specify the restrictions for the quantity to beproduced in a planning period. The SNP optimizer must adhere to theserestrictions if it uses the production process model as a source of supply.

� The minimum lot size is the minimum quantity that can be produced ina planning period (if anything is to be produced during the planningperiod). With lot size planning a cross-period lot size must be at leastas large as the minimum lot size.

� The maximum lot size is the maximum quantity that can be producedper day.

Caution: The lot size of the BOM and Task list are not relevant in SAPSCM. Only the lot size of the production version is relevant.

The procurement priority is SAP SCM functionality and is used in sourcedetermination. The highest priority is priority 0. In Production Planning andDetailed Scheduling the system uses additional criteria for supply sourcedetermination, such as costs. If the procurement priority is the same, the systemselects the source of supply with the lower costs. You use the procurement priorityfor deployment to specify the sequence of source locations from where real timedeployment is to be started, if you are running deployment for a destinationlocation.

Operations in the PPMThe use of the routing in SAP SCM is very different to that of SAP ECC . Theoperation itself has very little relevant data in SAP SCM. The majority of thecontrol parameters are attached to the activity(s) of each operation.



Figure 154: Operations in the PPM

Note: During the Transfer from SAP ECC any operations that are relevantto scheduling will be transferred as an operation. Any sub-operationswill also be transferred, however they will be created as operationswith activity produce. As SAP ECC sub-operations are not relevantfor scheduling (there dates are determined according to the lower-leveloperation that they are assigned to), the sub-operation activity is linkedto a start-start relationship at the start of the operation. In the operationoverview of the SAP SCM PPM, the operation type will be set to 3 -PP/PI suboperation. The sub operations durations will remain fixeddurations. Therefore all relevant scheduling is still performed at the mainoperation in SAP SCM.

In addition, the operation text is transferred from the SAP ECC operationdescription. The operation description in SAP SCM however, is multi-lingual,where as in SAP ECC it can exist in one language only.

The setup group/keyfield in SAP SCM will be mapped from the details of theSAP ECC operation, setup group category and setup group key field. See thelesson Routing Basics for more details.

The location field is used if operations are going to be performed at other locationssuch as a sub contractor. SAP ECC has similar functionality, however due to thesuperior functionality in SAP SCM this information will be modeled differently,and thus will not transfer from SAP ECC .

Activities in the PPMWithin the operations of the PPM, are activities, the detail the manufacturingprocess and the steps for manufacturing. The CIF uses the BOM, Routing, andWork center to map to different SAP SCM fields. During the CIF transfer the�activities� of an SAP ECC operation, setup, process, tear down, duration, aretransferred in the appropriate order to the SAP SCM PPM as activities. Theseactivities are defined in SAP ECC as formulas found in the work center, whichuse�Standard Values� to calculate durations.



Figure 155: Activities in the PPM

Each activity will contain the components necessary for manufacturing, theresources required for manufacturing, and the relationship each activity has withthe other operations and activities to layout the sequence of manufacturing. Duringthe transfer through the CIF, any operations that are not relevant to scheduling arenot transferred to SAP SCM. Each operation is scheduled using the formulas fromthe relevant work center. The results of the scheduling are transferred to the newactivity which has a calculated �duration�based on the SAP ECC formulas.

For example in your SAP ECC work center (a machine) you may be capturingthe following standard values, Setup, Machine, Labor. Out of the three only twoare relevant for scheduling the Setup and Processing time. The formula for setuptime is often a fixed value, where as the processing time is variable based onthe number of units being processed.

Figure 156: Activities in the PPM

The activity field will be determined based on the type of activity that is happeningin the routing. This is automatically determined through the CIF. The result will bea P - production, S - setup, T - tear down, W - wait time. For the process industryit will appear as the phase number and the step number (sequence) in the process.



The description field for the activity will be SAP SCM specific data for routings,but for recipes the description of the phase will become the description of theoperation and the activity.

The activity type will be determined during the CIF transfer. This will bedetermined automatically by the CIF. The result will be a P - production, S -setup, T - tear down, W - wait time. Currently these are the only options, and iscontrolled by SAP development. The type description will match the activity type.

The scrap % will be mapped directly from the scrap in % field from the operationdetails (general data section). Unlike the other scrap values this will transfer fromSAP ECC exactly how is presented.

Caution: SAP recommends using either the assembly scrap orthe scrap in% in the routing. Using both can lead to double counting the scrap factor.In addition as part of standard SAP ECC functionality, the scrap in % canbe used to calculate and populate the assembly scrap field in the materialmaster. For more information see note 390850

The setup indicator is automatically set if there is a setup group and setup keyestablished in SAP ECC that has been transferred to the operation. This indicatortells the PPM to read the setup matrix to find the sequence dependent setup timeinstead of reading the setup time that was delivered from the routing in SAP ECC .As a result, the durations for setup will not be transferred into the PPM.

The synchronization behavior indicator is SAP SCM data. You can use thesynchronization behavior to override synchronization of overlapping activities- as specified in a multi-activity or multi-mixed resource. If you do not makean entry, the synchronization behavior of the resource is used. If you overridethe synchronization behavior, overlapping with synchronized activities is notpermitted for this activity. For example, you want to discharge a productat different, overlapping times from a container resource. You can do so byoverriding the resource�s synchronization behavior for the filling orders inquestion. In this way, the orders are neither synchronized nor scheduled withoutoverlap.

The order validity indicator is SAP SCM specific data. Using this field you canrestrict the possible dates (depending on the start or end date of the activity), forwhich an order can be scheduled or rescheduled. Basically the following optionsare available: An order can only be scheduled or rescheduled if the specifiedactivity dates are within the order validity period. An order can be scheduled forany dates; the validity period is not considered. The system defines the validityperiod of an order during production process model (PPM) explosion. Whiledetermining the validity period, the system considers the validity periods ofordered products and components. Dependencies in the scheduling strategy in thestrategy profile, define whether the system takes the validity period of the orderinto consideration when scheduling or rescheduling.



The time dependent indicator is also SAP SCM specific data. It indicates that timedependent planning parameters are maintained in the production process model(PPM) for this object . By doing this you can maintain planning version dependentand time dependent planning parameters for the following PPM objects:

� Activity - scrap� Mode - variable and fixed activity period� Resource - variable and fixed resource consumption of the activity� Components - variable and fixed consumption

Figure 157: Activity Time Dependent Parameters

During PPM explosion the system consumes the planning parameters which arevalid at that time.

Components in the PPMAttached to each activity users can define which materials will be consumed atthat step of the manufacturing process. The way the PPM is structured is thatevery material is assigned as a logical component.

Logical ComponentA logical component combines various technical alternatives of a materialcomponent that have different temporal validities. For example, a componentis valid in a specific period. After a technical change has been made, adifferent component is valid. Example: PC a PENTIUM processor iscurrently being installed. In six months, however, a PENTIUM II will beinstalled. The logical component could be, for example, a CPU.

Figure 158: Logical Components



This will ultimately allow users to identify several different materials that areeffective at different times.

Note: Currently when working with the BOM and routing, every logicalcomponent will have ONLY one material attached to it.

Every material in a PPM will be given an indicator as to whether it is an I -input(raw/WIP material being consumed) or an O - output material (a stocked item asa result of the production process) . If the material is the header material in theBOM then the main material indicator will be set on the logical component line.

Figure 159: Component Assignment

In the SAP ECC routing if a header material has an existing bill of material, usershave the option of performing a component allocation, by assigning componentsto operations. If this activity is performed in SAP ECC , then the assignments willtransfer to the associated operation in SAP SCM. Specifically, the component willbe allocated to the first activity of the assigned operation. If an operation hasboth setup and production, then the item will be assigned to the setup activity.In addition, if no assignment has been made, then SAP SCM will assign thecomponents to the very first activity of the very first operation. For the finishedproduct, which will be marked as an output component, it is assigned to theproduce activity of the last operations. If no produce activity exists, then it is



assigned to the setup activity. If materials are assigned to an operation in SAPECC that is not transferred to SAP SCM, they are assigned to the first activity ofthe first operation in the PPM.

Note: If the distribution function is used for any items in the BOM inSAP ECC , then the items will be attached to the Produce activity of thePPM. This is due to the fact that you are trying to spread the requirementsout across the duration of the run therefore you need an activity that isvariable based on lot size.

In addition to modeling whether the product is an input or output, it maybenecessary to identify for scheduling purposes when the material is expected tobe consumed at an activity. During the transfer, the different materials will betagged with the consumption type in SAP SCM. The output or header materialswill be assigned a consumption type E - consumption at end of activity. Anyco-products in the BOM will be identified as E as well. Components that willbe consumed during the process will be identified as S - consumption at startof activity. If a distribution key is used in the production version for the enditem, or the components in the BOM, then the consumption type will be set toC - continual consumption.

The Offset consumption field, specifies the temporal offset; that is, the timeinterval that is added or subtracted from the start point or end point of the activity,in order to obtain the time at which the material consumption takes place.This field will be populated from the lead time offset in the item detail for thecomponent in the SAP ECC BOM.

Figure 160: Alternative Components

By selecting a logical component and choosing the Select row icon, users canview the actual product master that is assigned to the logical component. Eachlogical component will have at least one product master assigned to it. Currently inSAP SCM 4.0 the BOM and Routing only support one product master per logicalcomponent. For each product master a valid to and from date is applied based onthe SAP ECC BOM at the time of transfer. The time is SAP SCM functionalityand is defaulted in as 00:00:00 for the from and 23:59:59 for the to time periods.



The Consumption quantities will be populated based on the SAP ECC bill ofmaterial. The header/output material quantity will be based on the base quantity inthe header section of the SAP ECC BOM. For the header materials the variableconsumption field will be populated. The components of the SAP ECC BOMwill also populate the variable quantity, but it will be based on the base quantityof the header material. The fixed consumption field in SAP SCM is populated ifthe component on the SAP ECC BOM has the �Fixed�indicator set in the itemdetails section of the component details.

The prevention of product explosion indicator is SAP SCM functionality. If youset this indicator, the system does not create any planned orders for this componentwhen the plan is exploded. The system must cover dependent requirements withexisting in-house production orders or external procurement orders. This indicatoris only relevant to Capable-To-Match (CTM).

Figure 161: Component Time Dependent Parameters

By selecting the Time dependent parameters icon, users can enter timedependent consumption. This would allow users to compensate for a learningcurve during the introduction of a new product. In addition, these can be appliedto different versions to support �what if�scenarios.

Modes in the PPMIn the SAP ECC routing every operation typically has been assigned a workcenter. In the SAP SCM PPM, each activity typically will be assigned one or moremodes. Each mode will have one or more primary �scheduling�resources in orderto schedule the activity on the necessary manufacturing resource.



Figure 162: Modes in the PPM

The mode determines the resource and the capacity requirements needed toexecute an activity. The primary resource is relevant for scheduling, however,users can add one or more secondary resources to each mode. The system alsocreates capacity requirements for the secondary resources during scheduling.For example, during the molding process for detergent bottles, it is necessary toschedule each wheel machine that the bottles will be made in. In addition eachmachine requires a mold set to form each bottle. You have three wheels to runthe mold on, however you only have two mold sets. This now brings the moldset in as a constraint during planning.

Figure 163: Multiple Modes in the PPM

At each activity, several modes or primary resources can be assigned. These aretreated as alternative resources that can be used to process the same activity.During the PP/DS planning run, the system automatically selects the mode. Ifperforming finite scheduling during the planning run the system will explore eachmode as an option in order to deliver the product on time.

The mode field is populated during the CIF transfer by default. The work centerfrom the operation within the main sequence, is given the mode number 1. Anyother sequences will be labeled in sequential order.



The mode priority is SAP SCM specific Data. Similar to the mode, the relevantwork center for that operation (from the main sequence) is given mode A bydefault. All other sequences will be label in sequential order. You can assign anactivity to different modes, which means different primary resources on which theactivity can be carried out. These alternatives are not usually of the same value:The capacity of a fast, costly special machine should be utilized before that of theslower, less costly, replacement machine. Thus, you assign priorities to the modes(that is, the alternative resources) in PPM. The system schedules these alternativesaccording to these priorities. A mode with priority A has the highest priority, amode with priority B has the next highest priority (and so on, up to priority O).Assign priority Z to a mode when you want to schedule the respective resourceonly manually in the planning board. You manually schedule resources that youwant to use only in exceptional cases for production, for test or training machines,for example.

The primary resource is where capacity is sought and the work scheduled. Thiswill be the work center from SAP ECC operation. In certain circumstances, a workcenter may have several different capacity categories. For instance a machine isrequired to run production, however an line operator must be present at all times.In such an instance you would define both the machine and the labor as a capacityconstraint in the work center. When the work center is transferred to SAP SCM itwill be transferred as two resources, one for labor and one for machine.

Figure 164: Primary Resources in the Mode of the PPM



In SAP ECC , the capacity category identifies the days, times and number ofcapacities a given work center has available. Within the SAP ECC work center itis required to identify which of any capacity categories are going to be the oneused for scheduling. This is known as the scheduling basis, and is a required fieldin SAP ECC . Any other capacity categories will become �secondary� resources.

The Location is transferred from the plant field in the SAP ECC routing where thework center is located. The unit of measure for the durations in transferred fromthe base unit of measure from the capacity header of the capacity category.

The durations of the activity are transferred through the CIF as calculated values.Upon creating an activity, the CIF uses the formula in the work center to schedulethe activity, thus deriving a duration. If the formula uses the operation quantity tocalculate the duration, then the duration will be variable in nature, such as theprocessing time. If the formula does not use the operational quantity, then thesystem will place the duration in the fixed duration field. One example of this issetup time, which is typically static in nature.

The increment field is SAP SCM specific data. When you enter an increment,the system rounds the activity duration calculated from the fixed and variableduration up to the next value that can be divided evenly by this increment. Youcan therefore model an activity duration with this increment that increases insteps (that is, a step function).

Example: The work feed for a machine can hold up to 100 work piecessimultaneously. The processing operation takes 4 minutes, regardless of whether1 piece or 100 pieces are loaded in the machine. The machine must therefore berefilled in order to process a lot of 170 pieces; once with 100 pieces and once with70 pieces. Therefore, to process this lot it takes 2 times 4 minutes. To process a lotof 240 pieces, it takes 3 times 4 minutes, and so on.

The activity duration is therefore a step function. In order to model the behaviorof the activity, you enter the following data: Data for the activity duration Unitof measure = MIN, Increment = 4 Variable duration (Based on a base quantityof 1 piece) = 0.04

The system determines the rounded activity duration for scheduling as follows:Activity duration calculated from the variable duration Rounded activity duration:

� Up to 4 minutes => 4 minutes� Up to 8 minutes => 8 minutes� Up to 12 minutes => 12 minutes

The break not allowed indicator is SAP SCM specific data. You must check thisfield if the mode cannot be interrupted by a break. For example, do you start amixing operation with a duration of 8 hours, with 1 hour to go before the weekendshut down? If the process will be ruined by stopping then you want the systemnot to start this process if it is going to be interrupted.



Figure 165: Modes in the PPM (2)

The break without interruption is also an SAP SCM specific field. It indicatesthe maximum duration of a short break during this activity which is carried out inthe defined mode. If no value is maintained here, the system automatically sets amaximum break fixed value. As a result, activities can be planned over more thanone day with no problems. To exclude breaks, do not make an entry in the fieldand set the indicator Break not allowed. Specify the break duration in the formatHHHHHH:MM. To prevent breaks, you must set the indicator Break not allowed.Example: A mode can only be interrupted by short breaks, such as an hour longlunch break. The maximum duration for a valid break is defined here. If you havemaintained a break of one hour, the interruption cannot be a weekend

The production within a shift indicator is SAP SCM specific data. By settingthis indicator, a user specifies that scheduling of this activity must not crossshifts. This often allows production departments to realize higher efficienciesdue to less changeovers in a given shift. In order for this to work, the resourcemust have shifts defined.

Figure 166: Mode Time Dependency in the PPM

As of times necessary when introducing a new product, the durations will decreaseas the shop floor becomes more familiar with the product. By selecting the mode

and the Time dependent parameters icon, users can enter validity periods andenter in different fixed and variable durations to map a learning curve. This data isSAP SCM specific data and can be used in other versions to show worst or bestcase scenarios for a new product launch.



Secondary ResourcesTo properly model a manufacturing environment, you are often required to modelother constraints during the manufacturing process. In the case of a productionline, the time available for operation is one constraint, the labor to operate theproduction line, or a piece of equipment that is require to operate the machine,such as a tool or die. Resources other than the primary resource are consideredsecondary resources. For every resource, the capacity consumption of thatresource must be defined in reference to the scheduling duration.

Figure 167: Resource Consumption in the PPM

Depending upon the type of resource your PPM is using will cause either bucketor variable consumption to be modeled.

Resource Type Continual Consumption Bucket consumptionSingle activityMulti activity XBucket XSingle-mixed XMulti-mixed X

For each capacity category in SAP ECC , an entry is made into the table of thereserved resources under the mode in the PPM. Single resources can only beoccupied by one activity at any given time. Hence the resource consumption(quantity independent) is 1, and corresponds to the capacity of the resource. Singleresources can only be quantity dependent for the net duration of the activity.Multi-resources can process several activities simultaneously. The resourceconsumption can consist of a fixed and a variable part. However, a variableresource consumption is only allowed when the net duration is independent ofquantity. With multi-resources, the resource consumption can exceed the capacityof the resource. For example, with large order quantities, the system reduces theresource consumption to the value of the standard capacity, and increases the netduration of the activity accordingly. If the resource consumption is twice as largeas the standard capacity of the resource, the system doubles the net duration of



the activity. If you have not specified a standard capacity for the resource, theresource consumption and net duration retain their original values. Therefore, theactivity cannot be scheduled.

Variable Continuous consumption is only applicable

The variable resource utilization is applicable for single activity type resources.The fixed resource utilization corresponds to the number of fixed splits defined inthe SAP ECC operation, otherwise it is equal to 1.

Activity Relationships in the PPM

Figure 168: Activity Relationships

The �activities�of an SAP ECC operation, setup, process and tear down, aretransferred in this order into the SAP SCM PPM as activities. The activityrelationships define the order of SAP SCM activities. During the CIF transfer of anSAP ECC operation, the system creates these activity relationships automatically,as preceding and subsequent relationships within an operation. The operationnumber determines with sequence of the individual operations of an SAP ECCrouting. A corresponding activity relationship between the last activity of oneoperation and the first activity for the following operation defines the sequencein the SAP SCM PPM.



Figure 169: Overview of Activity Relationships

In SAP ECC there two types of activity relationships. Start/Start relationship iswhen the start time of the two activities correlate with each other. Start/Startrelationships would deal with parallel processing steps. Finish/Start relationshipsis when the start of one activity is linked with the end of the previous activity.Finish/Start relationships implies a sequential manufacturing process. Within arouting most operations a going to follow a Finish/Start relationship because theyare following a sequential process.

However, in SAP ECC , within the details of each operation users can definewhether operations can be performed in a continuous manner. For example,once a bottle is labeled it is immediately filled. There is no build up of labeledbottles. Additionally in SAP ECC , users could also stipulate that operationscould overlap. For example, if I have an order for 1,000 units, only after 100 havefinished operation 10, can be begin operation 20.

Note: Currently in PI 2002.2, this functionality is not supported.

Transferring BOMs and Routings to SAP SCMWhen transferring BOMs and routings to SAP SCM, each production versionwill generate a PPM that will be linked to the production version as long asthe integration model is active. The validity date of the PPM will be extremelyimportant.



Figure 170: PPM Selection methods in theSAP ECC integration Model

As seen in the integration model several different types of PPMs can be created asa result of using the CIF. Recipes (PP-PI) and routings will create Production plans.Maintenance task lists can be used to model service management functionalityin SAP SCM . An entry must exist in the service product table T399A, and acorresponding routing must be maintained. In addition, a material master mustbe maintained for the service product.

Subcontracting is handled differently in SAP SCM . Since the vendor willbecome its own planning location, PPMs can be created at the vendor location.There are several prerequisites for this to occur. A product master must existin the vendor location, and the resource for the PPM activities must exist. Toautomatically create product masters in the vendor location, customer exitEXIT_/SAPAPO/SAPLCIF_PPM_001 can be used. Reference note 483358 forsample source code. In order to transfer the subcontracting PPM, a productionversion must exist in the plant initiating the process, and the production versionmust be specified in the purchasing info record. Subcontracting will be discussedin more detail in a later lesson.

For the creation of Production Process Models (PPMs) in SAP SCM, SAP ECCBOMs and routing or recipes from the production version of the material masterare exploded and converted into the corresponding PPM structures. This explosionoccurs with reference to key date, so that for a production version in SAP ECC



there can only be one validity period for BOMs and routing in the PPM. Using thisindicator you can control with which date the BOM and routing explosion occursin SAP ECC . There are 4 possibilities to choose from:

� Explosion according the selection date entered in the Valid to field� Explosion according to the time of transfer� Explosion according to start date of the production version� Explosion according to end date of the production version

If you use different validity periods in your BOMs or routing and wish to mapthese validity periods in SAP SCM, you have to generate one validity period perproduction version and include this in your integration model.

Furthermore, when transferring repetitive manufacturing routings from SAPECC to SAP SCM production process models, it is possible to define whetherthe routings are at rate level or at detailed scheduling level. In SAP ECCcapacity planning, capacity requirements can be generated at several differentlevels, however for the PPM creation we will only created detailed/continuousrequirements.

Parallel sequences in the SAP SCM PPMDuring the transfer of a routing through CIF to the PPM, each operation andsequence will be analyzed for its relationship to all other operations. As a result, inthe SAP SCM PPM, activity relationships are formed for every single operation.Not only every operation will have a relationships but all of the activities of anoperation will determine its relationship with all other relevant activities.

Note: The integration of parallel sequence when generating a PPM inSAP SCM, requires that at least one SAP SCM-relevant branch operationor return operation exists.



Upon transferring a routing with a parallel sequence the follow relationships canbe created within the PPM :

1. END/START relationships are created by default between the operationswithin the main sequence.

2. END/START relationships are created by default between the operationswithin a parallel sequence.

3. Assuming all operations are SAP SCM relevant, if the operations of theparallel sequence returns to the main sequence prior to completing theprocess (one operation left in main sequence), then a START/STARTrelationship is formed.

4. If the LAST operation in the main sequence is defined as the return operation(process complete), then an END/END relationship is connected betweenthe operation from the main sequence, and the last SAP SCM -relevantoperation of the parallel sequence.

5. If a subsequent operation exists in the main sequence, for the returnoperation, an END/START relationship is connected between the lastSAP SCM-relevant operation of the parallel sequence and this subsequentoperation.

Caution: Problems can arise if the following scenarios arise during thetransfer through the CIF:

1. If the return operation is not defined or not SAP SCM-relevant, arelationship between the master sequence and the parallel sequenceis not connect here. In this situation, the parallel sequences endswithout reference to the main sequence.

2. If the branch operation is not defined or not SAP SCM-relevant, arelationship between the main sequence and the parallel sequence isnot connected. Hence, the parallel sequence starts without referenceto the main sequence.

Caution: Using the standard CIF functionality, the PPM will notdistinguish between sequences. Meaning, users will not be able to tell firsthand which operations belong to which sequence in SAP ECC . Throughthe use of the graphical overview it will be more obvious.

Alternative Modes in SAP SCMThe result of transferring a sequence to SAP SCM will be a mode in the PPM.The mode defines how and where an activity is to be executed. It gives a detaileddescription of how the activity is to take place.

A mode contains exactly one primary resource, and - optionally - severalsecondary resources. In addition the primary resource may have one or morealternative resources. Each resource may appear only once in a mode. You define



one of the resources as a calendar resource. The system uses the calendar of theresource when scheduling the activity. The various functions of the resources inthe mode are described below:

In the mode, you define:

� The duration of the activity.� The capacity used by the activity (resource consumption)

Figure 171: Alternative modes in the PPM

During scheduling, the system uses this data and the quantity to be produced tocalculate the duration of the activity and the consumption of resources (capacityrequirements). An activity occupies all the resources of the mode simultaneously.That is, it has the same start and finish date on all resources. To representalternative processing variants, you can assign several modes to an activity andthen define various priorities for these modes. In the detailed scheduling planningboard, you perform mode selection manually. With automatic mode selection (forexample, when creating an order), the system selects the mode automaticallyaccording to priority and the availability date.

The mode priority, identifies the rank of a mode within the group of modesassigned to an activity. In general, these alternatives are not of equal value. Forexample, you may want to load a fast, expensive machine more than you wantto load the slower, inexpensive replacement machine. This means you have toassign priorities to the modes: A mode with priority A has the highest priority (for



example, the special machine), a mode with priority B has the next highest priority(for example, the replacement machine), and so on up to priority O. Variousmodes can have the same priority. With automatic mode selection (for example,when creating an order), the system selects the mode automatically according topriority and the availability date. You assign priority Z to the modes you onlywant to schedule manually in the DS planning board. You manually schedule theresources you only want to use in exceptional situations for production (test ortraining machines). You can schedule modes of all priorities manually in theDS planning board.

The mapping of alternative sequences as alternative modes is strictly useful forscheduling an capacity reasons. However, since the SAP SCM System has muchmore options concerning capacitive considerations and optimizing than the SAPECC System, you should no longer carry out a sequence replacement in the SAPECC System for capacitive reasons. It should only be determined in the SAP SCMSystem, at which work centers (resources) an order is carried out.

Caution: A sequence replacement in the SAP ECC order is notinterpreted as mode change in SAP SCM but leads to the deletion of theoperation from the original standard sequence in the SAP SCM order andto the addition of the operations from the alternative sequence to the SAPSCM order. Any information from the operations of the original standardsequence (setup information, alternative modes, operation text, scraps,...) is thereby lost in SAP SCM!

A sequence replacement with variable lot size cannot be implemented with thislogic. This should be mapped via different production versions in the SAP ECCSystem (as of Release 4.0A this has the advantage in the SAP ECC System thatsequence replacement is restricted to opened production orders, whereas thereading of a new production version is still possible in released orders also).

Transferring Alternative sequences to SAP SCMFor the typical user transfer alternative sequences to SAP SCM will be seamless.During the creation of the integration model, users must make sure to include thework centers of the alternative sequences. There is no other steps that need to betaken by the user to CIF over the alternative sequence.

Although it will not be apparent to the users, alternative sequences are not supportthrough the standard delivered CIF. In order to transfer alternative sequences tothe SAP SCM PPM, you must first activate the customer exit on the SAP ECCsystemEXIT_SAPLPGS1_001 of the SAP enhancement CIFPPM01. Examplesof the source code to support the transfer can be found in note 217210.



Figure 172: Customer Exit SAPLPGS1_001

In the sample source code, alternative modes for activities of the master sequenceare created for operations of alternative sequences. This means that the operationsof the standard sequence determine the number of activities. The priority ofthe alternative modes is determined by the sequence number. Different logicfor the mode priority can be applied by using the customer exit (variable1_mode_priority).

Below is an small example of the source code that is used to support the alternativesequence transfer.

FUNCTION EXIT_SAPLPGS1_001.

*"----------------------------------------------------------------------

*"*"Local interface:

*" IMPORTING

*" VALUE(IS_CIF_IMODK) LIKE CIF_IMODK STRUCTURE CIF_IMODK

*" TABLES

*" OUT_CIF_PPM_KEY STRUCTURE PPM_KEY OPTIONAL

*" OUT_CIF_PRODVER STRUCTURE CIF_PRODVR

*" OUT_CIF_PPMT STRUCTURE CIF_PPMT OPTIONAL

*" OUT_CIF_PRODVERZ STRUCTURE CIF_PRDVRZ

*" OUT_CIF_PLAN STRUCTURE CIF_PLAN

*" OUT_CIF_PLANT STRUCTURE CIF_PLNT OPTIONAL

*" OUT_CIF_PLANOPR STRUCTURE CIF_PLNOPR

*" OUT_CIF_PLANOPRT STRUCTURE CIF_PLNOPT

*" OUT_CIF_PLANACT STRUCTURE CIF_PLNAC

*" OUT_CIF_PLANACTT STRUCTURE CIF_PLNACT

*" OUT_CIF_PLANACTZ STRUCTURE CIF_PLNACZ



*" OUT_CIF_ACTREL STRUCTURE CIF_ACTREL

*" OUT_CIF_MODE STRUCTURE CIF_MODE

*" OUT_CIF_REQCAP STRUCTURE CIF_REQCAP

*" OUT_CIF_COMP STRUCTURE CIF_COMP

*" OUT_CIF_COMPALT STRUCTURE CIF_COMPAL

*" OUT_CIF_COMPALZ STRUCTURE CIF_COMPAZ

*" OUT_CIF_TRPROD STRUCTURE CIF_TRPROD

*" OUT_CIF_PRODFLOW STRUCTURE CIF_PRDFLO

*" OUT_CIF_COMPALTS STRUCTURE CIF_CMPALS

*" OUT_CIF_REQCAPS STRUCTURE CIF_RQCAPS

*" OUT_CIF_TRPROD_CUS STRUCTURE CIFTRPRCUS OPTIONAL

*" OUT_CIF_PRODVERZ_CUS STRUCTURE CIFPRVZCUS OPTIONAL

*" OUT_CIF_PLAN_CUS STRUCTURE CIFPLANCUS OPTIONAL

*" OUT_CIF_PLANOPR_CUS STRUCTURE CIFPLOPCUS OPTIONAL

*" OUT_CIF_PLANACT_CUS STRUCTURE CIFPLACCUS OPTIONAL

*" OUT_CIF_PLANACTZ_CUS STRUCTURE CIFPLAZCUS OPTIONAL

*" OUT_CIF_ACTREL_CUS STRUCTURE CIFACRLCUS OPTIONAL

*" OUT_CIF_MODE_CUS STRUCTURE CIFMODECUS OPTIONAL

*" OUT_CIF_REQCAP_CUS STRUCTURE CIFRQCPCUS OPTIONAL

*" OUT_CIF_COMP_CUS STRUCTURE CIFCOMPCUS OPTIONAL

*" OUT_CIF_COMPALT_CUS STRUCTURE CIFCMALCUS OPTIONAL

*" OUT_CIF_COMPALZ_CUS STRUCTURE CIFCMAZCUS OPTIONAL

*" OUT_CIF_PLANX STRUCTURE CIF_PLANX OPTIONAL

*" OUT_CIF_PLANTX STRUCTURE CIF_PLNTX OPTIONAL

*" OUT_CIF_PRODVERX STRUCTURE CIFPRODVRX OPTIONAL

*" OUT_CIF_TRPRODX STRUCTURE CIF_TRPRDX OPTIONAL

*" OUT_CIF_PPMTX STRUCTURE CIF_PPMTX OPTIONAL

*" OUT_CIF_PRODVERZX STRUCTURE CIFPRDVRZX OPTIONAL

*" OUT_CIF_PLANOPRX STRUCTURE CIFPLNOPRX OPTIONAL

*" OUT_CIF_PLANOPRTX STRUCTURE CIFPLNOPTX OPTIONAL

*" OUT_CIF_PLANACTX STRUCTURE CIFPLNACX OPTIONAL

*" OUT_CIF_PLANACTZX STRUCTURE CIFPLNACZX OPTIONAL

*" OUT_CIF_PLANACTTX STRUCTURE CIFPLNACTX OPTIONAL

*" OUT_CIF_ACTRELX STRUCTURE CIFACTRELX OPTIONAL

*" OUT_CIF_MODEX STRUCTURE CIFMODEX OPTIONAL

*" OUT_CIF_REQCAPX STRUCTURE CIFREQCAPX OPTIONAL

*" OUT_CIF_COMPX STRUCTURE CIFCOMPX OPTIONAL

*" OUT_CIF_COMPALTX STRUCTURE CIFCOMPALX OPTIONAL

*" OUT_CIF_COMPALZX STRUCTURE CIFCOMPAZX OPTIONAL

*" OUT_CIF_PRODFLOWX STRUCTURE CIFPRDFLOX OPTIONAL

*" OUT_CIF_COMPALTSX STRUCTURE CIFCMPALSX OPTIONAL

*" OUT_CIF_REQCAPSX STRUCTURE CIFRQCAPSX OPTIONAL

*"----------------------------------------------------------------------

INCLUDE ZXPGSEU01 .



ENDFUNCTION.

If more than one operation is contained in the alternative sequence, the alternativemodes between operations are connected with a mode linkage 3 - Identical modenumber. Thus the mode change in the SAP SCM system corresponds to thesequence replacement in the SAP ECC system. If only one operation exists inthe alternative sequence, then the mode linkage is set to 2 - identical primaryresource.

Figure 173: Mode Linkages

From a technical perspective, a mode change in the SAP SCM system causes awork center change in the standard sequence of the SAP ECC production order.As a result, at least the following restrictions apply to mode change in the SAPSCM system as compared to the sequence replacement for the SAP ECC system:

� No new component assignment is made� The short text for the operations are not changed� The default values from the operations of the alternative sequences are not

transferred. This way, incorrect default values may occur during confirmation� Operation scrap possibly differing from the standard sequence in not

transferred to SAP SCM.

Note: Reference operation sets are not transferred when using alternativesequences. If reference operation sets are required, reference note 204367,to implement corrections.



Exercise 20: Production Process Modelsin SAP SCM

Exercise ObjectivesAfter completing this exercise, you will be able to:� Describe the layout and navigate within a PPM� Explain the creation/conversion process of creating PPMs in SAP SCM

from SAP ECC master data.� Create a PPM from and SAP ECC Bom and Routing.�

Business ExampleYou created a Bill of material and routing for the ZAP-1## plant 3100. As partof your SCM implementation, you must know transfer that data to the SAPSCM system and verify that all aspects of manufacturing have been modeledappropriately to support all planning functions.

Task 1: Integration of BOMs and Routings with SAPSCMWith the production versions now created in SAP ECC we must transfer them toSAP SCM in order to continue building our supply chain within SAP SCM.

1. Create and integration model to transfer your all new Production Versionsfor which your new planner is responsible (in SAP SCM) in plant 3100 Usethe following Data to classify your integration model

Field Data

Model Name Group-##


APO Application PPM MD


2. Upon exiting the transaction you will be asked to save as a variant. Due tothe frequency in which PPMs are created we will create a variant for thisintegration model. Create variant PPM-##, Generate GR ## PPM

3. Activate your integration model to transfer your new PPM to SAP SCM




Task 2: PPMs in SAP SCMAs a result of creating and activating your integration models to handle yourBOMs and Routings, we will now explore the result of the Transfer. In SAPSCM, the result with be the Production Process Model or PPM. In order to betterunderstand the new data object we will explore the PPM and understand how itis built from the BOM and Routing.

1. Review the new PP/DS PPM that was generated via the CIF for ZAP-1## atplant 3100.

2. What are the Plan numbers that the CIF generated for your PPMs?

3. What is the lot size validity and PPM name for this PPM?

4. How many Operations Does your PPM contain?

5. How many activities does your PPM contain?

6. How many modes does this activity use, and what is the duration of thisactivity?




7. How many materials are contained in your in PPM versus the ECC BOM?

8. Using work area on the right drill down to see which components areallocated to the production activity and fill in the follow table with the

results. Double click on the operation or select Select row

, then select the production activity and select Select row

. Drill into the logical components to get the quantities. Select Return toactivity to get back to the activity details screen.

Short Text I/O indicator Variable Qty Fixed Qty

Task 3: More PPM Navigation (Optional Timepermitting)In the previous task, you reviewed you high speed routing and BOM. Now reviewthe group BOM that was transferred from ECC and note the differences.






3. Why is the lot size set for 20,000 cases?



6. Using work area on the right drill down to see where the components areallocated to specific operations and activities. Double click operation or

select Select row






ShortText

Op/Activity I/Oindicator

Variable Qty Fixed Qty

T-LB-100

BTL-1##

CAP-1##

T-FD1##

T-BOX-100ZAP-1##



Solution 20: Production Process Modelsin SAP SCMTask 1: Integration of BOMs and Routings with SAPSCMWith the production versions now created in SAP ECC we must transfer them toSAP SCM in order to continue building our supply chain within SAP SCM.

1. Create and integration model to transfer your all new Production Versionsfor which your new planner is responsible (in SAP SCM) in plant 3100 Usethe following Data to classify your integration model




Field Data

Model Name Group-##




a) Menu Path: Logistics→ Central Functions→ Supply Chain PlanningInterface→ Core Interface Advanced Planning and Optimizer→Integration Model→ Generate→ Create

b) In the section marked �Material Dependent Objects�Select the checkbox PPM.

c) In the section marked �General Selection Options:for Materials�Enterthe following:

Field Name Data:Plant 3100

MRP Controller 2##

MRP Type X0

d) Select Execute

e) In the filter object section place your cursor on PPM, and choose

Detail View



h) Select Back .


2. Upon exiting the transaction you will be asked to save as a variant. Due tothe frequency in which PPMs are created we will create a variant for thisintegration model. Create variant PPM-##, Generate GR ## PPM

a) Select Save as Variant and enter the information above.

b) Select Save Save





a) Select Execute

b) Select the integration model that contains your new PPMs

Hint: Look in the APO Application for PPM MD.

c) Select the line with the date and time stamp and selectDetails view

d) Double click on the line labeled PPM

e) Select Back to return to the activation/deactivation screen.

f) Select the line with the date/time stamp and select Set to

active/inactive

g) Select Start Activation

Task 2: PPMs in SAP SCMAs a result of creating and activating your integration models to handle yourBOMs and Routings, we will now explore the result of the Transfer. In SAPSCM, the result with be the Production Process Model or PPM. In order to betterunderstand the new data object we will explore the PPM and understand how itis built from the BOM and Routing.


a) SAP SCM menu path:APO→ Master Data→ Production ProcessModel→ Production Process Model

b) From the Choose plan screen, select Choose plan through PPM, Enteryour product ZAP-1##, plant 3100, and use of Plan P (PPM Productionplanning detailed scheduling).

c) Select Change. Select the First plan number that should contain A001.


Answer: If you followed the naming convention suggested in the exercises,for your high speed routing: NHDL-##01A001. N - Standard Routing,HDL-## - Routing Group number, 01 - Group counter, A001 - Productionversion. For the Group Routing: N - Standard Routing, T-SCNA21 -Routing Group number, 01 - Group counter, A003 - Production version,ZAP-1## product number, 3100 - Plant





a) From the plan header segment select Product plan assignment

b) The PPM is called something similar to ZAP-1##3100A00100000000NHDL-## 01011. Your lot size is valid from 1to 999,999,999


Answer: From within the window at the top left, drill down under theheading Operations. As a result of the simplified modeling of your highspeed filler, you should have only one operation 0010 - Label/FIll/Cap/Pack


Answer: From the top left window continue to drill down under theoperation 0010 - Label/Fill/Cap/Pack. If you set up your routing as directed,your PPM should contain two activities P -Production and S - Setup

6. How many modes does this activity use, and what is the duration of thisactivity?

a) Choose the Mode tab.

b) The activity now has three modes:

Mode ModePrior-ity

Primary Resource Location VariableDuration

1 A WFILL-1##_3100_001

3100 .001 H

2 B WFILL-2##_3100_001

3100 .001 H

3 C WFILL-3##_3100_001

3100 .001 H

7. How many materials are contained in your in PPM versus the ECC BOM?

Answer: In the top left window, choose the functions button and selectProduct List. As a result of the transfer, you should have six materialsZAP-1##, CAP-1##, LBL-100 ,BTL-1##, T-BOX-100, and the T-FD1##.T-Glue was left off because bulk items are not relevant for SAP SCM.




8. Using work area on the right drill down to see which components areallocated to the production activity and fill in the follow table with the




Short Text I/O indicator Variable Qty Fixed QtyCAP-1## I -Input 4 pcT-LB-100 I - Input 4 pc

BTL-1## I -Input 4 pcZAP-1## O -Output 4 pc

Task 3: More PPM Navigation (Optional Timepermitting)In the previous task, you reviewed you high speed routing and BOM. Now reviewthe group BOM that was transferred from ECC and note the differences.


a) SAP SCM menu path:Master Data→ Production Process Model→Production Process Model

b) From the Choose plan screen, select Choose plan through PPM, Enteryou product ZAP-1##, plant 3100, and use of Plan P (PPM Productionplanning detailed scheduling).

c) Select Change. Select the Second plan number that should containA003.



b) The PPM is called something similar to ZAP-1##3100A00300000000NT-SCNA21211011. Your lot size is valid from 1to 20,000




3. Why is the lot size set for 20,000 cases?

Answer: Due to the lots size set in the production version, you have limitedthe used of this PPM. The lot size of the BOM or routing does not havean affect on the lot size of the PPM.


Answer: From within the window at the top left, drill down under theheading Operations. As a result of the simplified modeling of your highspeed filler, you should have three operations 0010 - Label Bottles, 0020 -Fill and Cap Bottles, 0030 - Pack Bottles in Corrugated boxes


Answer: From the top left window continue to drill down under theoperations to see the activities within each operation. . If you set up yourrouting as directed, your PPM should contain four activities:0010: Label Bottles P -Production and S - Setup0020: Fill and Cap Bottles: P -Production0030: Pack Bottles into corrugated Case P -Production

6. Using work area on the right drill down to see where the components areallocated to specific operations and activities. Double click operation or

select Select row



ShortText

Op/Activity I/Oindicator

Variable Qty Fixed Qty

T-LB-100 0010 / P I - Input 4 pcBTL-1## 0010 / P I - Input 4 pcCAP-1## 0020 / P I -Input 4 pcT-FD1## 0020 / P I -Input 12 liters

T-BOX-100

0030 / P I -Input 1 pc

ZAP-1## 0030 / P O -Output 4 pc



Lesson Summary

You should now be able to:� Explain the need for production versions� Create production versions� Transfer a BOM and a Routing to SAP SCM� Navigate the PPM


SCM215 Lesson: The Production Data Structure (PDS)

Lesson: The Production Data Structure (PDS)

Lesson OverviewIn this lesson, you will learn how to transfer master data objects from SAP ECC tothe SAP SCM System as a /Production Data Structure (PDS). The lesson explainsthe structure of the PDS and the process of transferring scheduling and activitiesand operations from SAP ECC to the SAP SCM System.


� Identify the dependencies between SAP ECC production version, and SAPSCM Production Data Structure (PDS).

�

Business ExampleYour company manufacturers several different models of pumps. In order toproperly prepare a manufacturing schedule, you need to properly model therequirements. These requirements will involve the necessary assemblies or rawmaterials as well as the manufacturing set-ups and relevant resources to producethe end product. One particular material however, under goes several engineeringchanges in the course of a year. Using an existing Bill of Material and Routing inyour SAP ECC system, you will transfer the production version to SAP SCM viathe Core Interface in order to Generate an SAP SCM PDS and review the results.

Introduction to the Production Data Structure (PDS)in SAP SCMIn some industries modeling the production and evolution of a certain productscan be very complicated. When a customer had a product that had many variationsdue to customers choosing a combination of features and options they typicallyused the variant configuration solution is standard SAP ECC. Additionally, theIntegrated Production and Process Engineer (iPPE) which is part of the SAPDiscrete Industry Solution for SAP ECC could be used. An example wouldbe a car manufacturer who has three distinct models but customers can choosea number of options from the exterior paint color to the type of transmission.Another complicated scenario in manufacturing is modeling changes to andexisting product and ensuring that the changes are captured properly duringplanning and manufacturing. Customers using SAP ECC were using theEngineering Change Management (ECM) functionality to model the necessarychanges to the SAP ECC BOMs , Routings, and Master Recipes.



Since the Release of SAP SCM , SAP initially developed the Production ProcessModel (PPM) to model manufacturing master data. However, while the PPMdid allow companies to take advantage of a new data structure to use the newfunctionality in PP/DS, the PPM did not support variant configuration or ECM.While the PPM that was generated from the SAP ECC production versiongenerated PP/DS relevant data, it did not allow for the generation or integrationinto SNP. In order for companies to integrate the SNP solution into their businesspractices, SAP allowed companies to generate SNP PPM�s from the PP/DS PPMthat was generated from the CIF. However, this did not work well for companieswho had large amounts of engineering changes that would affect their SNP process.

Figure 174: Mfg. Master Data Modeling options

From SCM 4.1 on, the Production Data Structure (PDS) is the key master datafor all kinds of production planning related processes. The PDS is supportedby the applications PP/DS, SNP, CTM and DP and can be used for Multi-levelATP and CTP as well. Like the PPM, the PDS corresponds to the productionversion on SAP ECC system. Though both PPM and PDS are still available asalternatives, there is no further development for the PPM since SCM 4.0. Themain motivation to develop the PDS was to have an integration of the EngineeringChange Management (ECM) and the Variant Configuration between ECC andAPO. This was not possible with the data structure of the PPM. Nevertheless atthe current point in time there are still functions which are supported by the PPMbut not yet by the PDS.

Up to SCM 4.0 the PDS was called Run Time Object (RTO) and had quite a lotof restrictions. Most of these are removed with SCM 4.1. SCM 5.0 will providefurther functionality for the PDS. For some scenarios the iPPE is used in ECC



and/or in APO instead of the production versions, routings, or recipes and BOMs.It is also possible to generate a PDS from the iPPE. However, this is not within thescope of this version of this document.

In respect to SAP ECC Variant Configuration functionality, the PDS allowsmultilevel configuration in the form of nested K-MAT. Changes to the objectdependencies are taken into account in the same way as the changes to Bills ofmaterials and routings. All types of object dependencies are possible both forcomponents and operations. Actions are mapped as procedures in SAP SCM.The priority sequence of procedures is retained in the runtime object. The objectdependencies are exploded by the �valid as of� date of the component or operation.

Multilevel configuration is supported in the same way as single-level configurationin SAP ECC. Components are marked as configurable in the runtime object ifthey have a valid configuration profile for nested K-MAT. The materials that canbe assigned to a class node are selected when a runtime object is created. Thematerials are created as additional components in the runtime object and each isassigned a selection criterion that is the same as the classification of the object.For the explosion, the evaluation of the parent is used to select the component.When changing the classification or deleting or adding new materials to the classthe runtime object must be transferred again. All class types for class nodes aresupported.

Variant tables and variant functions must be defined and filled in both SAP ECCand the SAP SCM. There is no data supply between SAP ECC and SAP SCM.This also applies to the content of variant tables. Date effectivity changes in a Billof materials and routing with and without change masters are now supportedin SAP SCM for planning using PP/DS runtime objects. When you change acomponent in a bill of materials with a valid from date for example, a new material4711 at position 30, the changes will be considered after a delta transfer in theSAP SCM. You can also transfer a classic bill of materials, routings, and recipesinto PP/DS runtime objects that will then be used instead of PPMs for planning.This means that variant configurations, engineering changes, Bills of materials,routings, and recipes can be transferred to PP/DS runtime objects. You can alsoreplace Production Process Models with PP/DS runtime objects.

Applying the PDS in SCMThe PDS for PP/DS is created from the ECC -production version like the PPM.Most of the developments are focused on the PP/DS functionality of the PDS. Thiswill be discussed in more detail later.

The PDS for SNP dissfers from the PPM for SNP. The PDS for SNP is transferreddirectly from SAP ECC and is not generated from the PP/DS-PDS. The structureof the SNP-PDS is more simple than the structure of the PP/DS-PDS. The structureof the SNP-PDS is used by the applications SNP, CTM and DP.



In a production version it is possible to maintain routings for detailed andrough-cut planning. For the PDS transfer it is possible to select from whichrouting the PDS will be generated (differing from the PPM transfer where alwaysthe routing for detailed planning was selected). This might be a modelling optionfor the transfer of SNP-PDS.

The PDS for SNP supports ECM only for components of the BOM. ECM foroperations is not supported. In the case of extensive use of ECM with relevancefor rough-cut planning it is recommended to maintain separate routings forrough-cut planning and transfer these as previously mentioned.

As of SCM 4.1 the PDS can be used in CTM. In CTM it is possible to choosewhether PP/DS or SNP master data should be used. Both cases are supported bythe PDS, though in each case the structure of the SNP-PDS is used. The contentof the PDS will however differ, depending whether PP/DS or SNP master datais selected as a basis for CTM. If CTM is to be carried out with SNP, the regularPDS for SNP is used.

If CTM is to be carried out with PP/DS, a PDS of the type �CTM� is generatedfrom the PP/DS-PDS at the point in time of the transfer of the PP/DS-PDS. ThisCTM-PDS contains a subset of the PP/DS-PDS and uses the structure of the SNPPDS. Figure 2 visualizes the creation of the PDS for CTM.

Figure 175: PDS for CTM

To trigger the generation of the PDS for CTM when the PDS forPP/DS is transferred the method CREATE_CTM_PDS of the Badi/SAPAPO/CURTO_CREATE must be activated.



As of SCM 4.1, the PDS can be used with DP. The PDS for DP is generatedfrom the PDS for SNP or from the PDS for PP/DS with the transaction/SAPAPO/CURTO_GEN_DP within APO. All BOM-levels of the structure areexploded and combined to the DP-PDS, not only one level.

As of SCM 4.1 the PDS can be used with Subcontracting and Phantoms. Indifference to the PPM the BOMs for phantoms have to be transferred explicitly.For the phantoms it is sufficient to transfer the BOMs, i.e. no production versionis required. For subcontracting in PP/DS it is also sufficient to transfer the BOMwithout having a production version in ECC as long as the production is modelledto take place within the plant. SNP does not support this modelling approach.

As of SCM 4.1 the PDS can be used with Order-BOMs and Work BreakdownStructure (WBS)-BOMs. The PDS for Order- and WBS-BOMs are transferredwith the transaction /SAPAPO/CURTO_CREATE_FOCUS. More details areavailable at the IBU for Engineering & Construction. Technically the PDS forOrder-BOMs and the PDS for WBS-BOMs are separate objects but have thesame structure as the PDS for PP/DS.

Creation/Transfer of the PDSThe PDS is transferred analogous to the PPM via CIF-model with the item �PDS�or �BOM�. Differing from the CIF-transfer of the PPM it is not possible to restrictthe selection for this item additionally by material number. For PP/DS, SNP andsubcontracting separate CIF-models are required.



Figure 176: PDS in the Integration Mode

Prerequisites for using the Production Data Structure are:

� You have to create and activate an integration model for runtime objects.Use the specific indicator iPPE Runtime object.

� All materials, plants and routings must be contained in active integrationmodels. This is also true for classes and characteristics if you are workingwith configurations.

� You have to create a production version for materials for which a runtimeobject is to be generated. The Bill of materials alternative and the routing fordetailed scheduling must be defined in the production version.

� If the Bill of materials contains phantom assemblies . These must betransferred separately and may not need a production version.

Phantom assemblies can be mapped in the runtime object. They are not explodedin SAP ECC as in the PPM. Only phantoms with special procurement key 50are treated as phantom assemblies. They must be transferred separately fromBOMs. The components of the phantom assembly contain the same activity asthe phantom components of the superordinate assembly. The phantom assemblymust have exactly one BOM alternative if a production version was not created.In SAP SCM orders, the phantom assemblies themselves are marked as notrelevant to pegging. It is possible to transfer phantom assemblies with productionversions. Planned orders can also be generated for these phantom assemblies. Thedistribution key is implemented in the runtime object and is hard-coded with lineardistribution. The lead-time offset is taken into account.



To support the PDS delta transfer process several transactions and reports areavailable on the SAP ECC side:

� CURTO_CREATE (Transaction)� CURTO_CREATE_BOM (Transaction for Phantoms)� CUSLNTRTO_CIF_REPORT(Report)� CUSLNTRTO_CIF_MAST (Report)� CUSLNTRO_ADDIN (BADI)

You can transfer a Bill of materials, and a routing to PP/DS runtime objects with aproduction version. Use transaction CURTO_CREATE in SAP ECC. You definethe target system and the planning versions to transfer complete structures into aplanning version of SAP SCM . If you set the �change transfer� indicator, onlythose runtime objects for which a master data change has been made since thelast transfer are transferred to the SAP SCM. Multiple, variant and super Billsof materials for configurable materials can be transferred. The following typesare not supported:

� Bill of materials for function location� Equipment Bill of materials� Document structures� Work breakdown structure Bill of materials

Bill of materials can have different validity periods at both the header and itemlevel. Within the validity period of the production version, all engineering changestatuses for headers and items are transferred.

� The release key for change numbers is not taken into account.� Only the base quantity is transferred from the Bill of materials header.� Only those Bills of materials relevant to production are transferred. This

takes into account its status and usage.� Sub items are not integrated because sub items from the BOM are not

included in the SAP ECC production order. They are therefore not relevantto SAP SCM.

After transferring the PDS, you can assign PP/DS runtime objects from planningversion 000 to new planning versions in the SAP SCM. You generate a link tothe PP/DS runtime object in the active version but do not duplicate the objects.Changes made to PP/DS runtime objects in the active planning version 000 will beconsidered in the linked planning versions.



Naming Convention for the PDSThe name of the PDS that is based on a production version is a concatenationof the following fields:

� Material [18]� Plant [4]� Production Version [4]� Supplier [10] for subcontracting, order resp. project number for Order- or

WBS-PDS� Usage [1]

The number in brackets refers to the length of the field. The name of the PDSwhich is based on a BOM consists of the following fields:

� Material [18]� Plant [4]� Alternative BOM [2]� BOM Usage [1]� Usage [1].



Create and Display PDS

1. SAP ECC menu path: Logistics→ Central Functions→ Supply ChainPlanning Interface→ Core Interface Advanced Planner and Optimizer→Integration Model→ Generate→ Create

2.

Use the following parameters:

Field Name ValueModel Name PUMP##


Application PDST-F1##

3. In the General Selection Options for materials enter Material T-F1## andplant 1000.

4. Select the PDS (ECC ) Indicator.

5. Select Execute

6. Select Save

7. SAP ECC menu path: Logistics→ Central Functions→ Supply ChainPlanning Interface→ Core Interface Advanced Planner and Optimizer→ Integration Model→ Activate

8. Enter the following values:

Field Name ValueModel Name PUMP##


Application PDST-F1##

Double click on your integration model you just created, and selectStart Activation

9. SAP SCM menu path: Advance Planning and Optimization→ Master Data→ PP/DS Runtime Object→ Display PP/DS Runtime Object

10. Enter the following Values:




Field Name ValuePlanning Version 000

Product T-F1##

Location 1000

Select Execute.

Properties of the Production Data Structure

Note: There is a decision matrix which lists the supported functions byPPM and PDS in detail in SAPNet, see also note 744445.



Planning Functionality Supported by the PDSListed below is the functionallity that the PP/DS supports:

� Order-internal Relationships: If the PDS is based on a recipe, theorder-internal relationships are taken from SAP ECC. If the PDS is basedon a routing, no order-internal relationships are saved in the database butcalculated from the activities during order creation (except for parallelsequences). The activities have end-start relationships like in the PPM.Differing from the PPM no overlap is transferred from SAP ECC, but it ispossible to implement this project specifically using a Badi.

� Production in Other Location: The functionality �production in otherlocation� is supported by the PDS.

� MRP Areas: The PDS supports MRP areas.� Scrap on Operation Level: Scrap at the operation level is supported but

only considered in PP/DS and CTM.� Secondary Resources: Secondary resources are modelled the same in the

PDS as in the PPM. A potential adjustment of the capacity requirement ofthe secondary resource (e.g. as the ratio of the standard values of labour andmachine) has to be implemented via Badis.

� Integration to PP-PI: The operations of the PDS correspond to theoperations of the recipe and the activities of the PDS correspond to thephases of the recipe. Like in the recipe the relationships in the PDS are onlybetween the activities. The link between the operations and the activities isnot visible in the PDS (different to the PPM). In the order both the linkbetween operation and activity and the dummy operations for integrationwith SAP ECC are visible.

Secondary resources in the recipe are transferred as an additional activitywith a start-start relationship to the activity that represents the accordingphase. However, this start-start relationship is not displayed in the PDS(different to the PPM). There is no difference for the order handling.

� Recursions in BOMs: For the PDS the same limitations apply as for thePPM.

PDS DisplayIt is only possible to display the PDS in APO � there is no possibilityof changing the PDS in APO. The PDS is displayed with the transaction/SAPAPO/CURTO_SIMU. On header level it is possible to display additionalfields with the icon for the detailed view. Note that some fields are not displayed ifthey are blank, therefore the display of the PDS does not necessarily provide anoverview about all supported fields. The PDS contains on the other hand somefields which are currently not used by any application.



Figure 177: Display PDS

It is possible to incorporate additional fields into the PDS. These might becustomer fields or industry solution specific fields. Both have to be implementedvia Badis. For the display of these fields the necessary settings in the APOcustomizing have to be maintained (path: Integration with SAP components� Integration of SAP SCM and SAP ECC� Application specific settings andenhancements � Settings and enhancements for PDS � Inbound processing of PDS� Include additional fields in PDS). To have these fields really displayed, entrieshave to be maintained in the PDS as well.

Differences between PDS and PPMThis section will explain the differences between PDS and PPM regardingfunctionality and modelling especially with regard to the migration from PPMto PDS.

The following planning functionality is supported by the PDS but not by the PPM:

� ECM for PP/DS (including the use of phantoms)� Subcontracting in SNP is fully integrated with SAP ECC� Direct transfer of SNP-PDS from SAP ECC� Use of object dependencies in APO� Order-BOM and WBS-BOM� Rapid Planning Matrix (in combination with ECC -DIMP)



The following planning functionality is supported by the PPM but not bythe PDS with SCM 4.1:

� Maintenance in APO. Since it is neither possible to maintain the PDS in APOnor are there any BAPIs, it is only possible to use the PDS in combinationwith SAP ECC.

� Characteristic requirements at the input node. These are mainly used inMill scenarios to select batches on lower BOM-levels (e.g. paper reels orsteel coils).

� Push-Production� Container resources� Net flag for the component scrap (supported by the PPM with a modification

as described in note 350583, but not supported by the PDS)� Step function for the standard value of the duration� Overrule the synchronization setting of the resource on activity level� Restrictions of the validity requirements of an order on activity level (start,

end, both or neither have to be within the validity interval)� Alternative modes for the PDS can either be created using alternative

sequences or resource classification but not both.� Time-dependent parameter (can be transferred to the PDS using a Badi)



Differences in the Modelling between PDS and PPM:

� Phantoms are transferred explicitly (in difference to the PPM where theBOM of the phantom is already exploded on the SAP ECC-side)

� If subcontracting in PP/DS is modelled like in SAP ECC (i.e. the productiontakes place in the plant) it is sufficient to transfer the BOM to APO. In thiscase no production version is required on SAP ECC-side. This is howevernot supported by SNP.

� For Multi-level ATP the transfer of the BOM is sufficient as well. In thiscase it is possible to use the goods receipt time as a work-around for theorder duration.

� For the generation of a SNP-PPM from a PP/DS-PPM it is possible toexclude components and operations by setting the flag �not SNP relevant� inthe product master resp. in the resource master. This possibility does notexist for the SNP-PDS. To exclude components and operations a separateproduction version or � to exclude operations only � a separate routing forrough-cut planning have to be maintained in SAP ECC.

� The PDS does not contain any field which indicates the difference betweenplanning plant and production plant. The processes �production in otherplant� and �MRP areas� are supported nevertheless

� For the transfer of alternative sequences to the PDS the BadiCUSLNTRTO_ADDIN has to be implemented (example coding in note357178). For the PPM the User-Exit CIFPPM01 had to be implementedaccording to note 217210.

In some cases a different modelling is required for the same functionality in thePDS and the PPM. Examples are listed in table 1.



Function PDS Fields PPM FieldsBlock the resourcecapacity between twoactivities

Cover-Flag on both relevantModes/ Cap- Reqs and Cover= X in the relationship

Cover-Flag in therelationship

Point in time and typeof the componentrequirement resp. theproduct availability1

I/O Type

IO Scheduling (discrete,continuous with offset,continuous w/o offset)

Offset (start-start, end-end)

I/O Offset

Percentage Offset (whetheroffset is an absolute value ora percentage)

Schedule Offset

I/O Indicator (Input,Output)

ConsumptionType (Start, End,Continuous)

Reference Offset(Start, End)

Offset Consumption(Temporal Offset+/-)

Internal order relationshipbetween activities inde-allocated mode

Average Time Planning RelatedMinimum Interval

Calendar resource Primary resource is thecalendar resource as defaultand is not explicitly set, butmight be set via Badi (fieldSET_CALE, CIF: CALE)

Calendar resourceis set explicitly

Note: 1Point in time and type of the component requirement resp. productavailability are used analogous to the PPM. However, the field �MATCO�is used to determine the �Consumption Type�. The field MATCO can bemanipulated either in the method CIF_IMPORT on APO-side or in themethod CHANGE_CIF_STRUCTURES on SAP ECC-side.

Manipulation of the PDS-Transfer via BADIsBadis to influence the PDS transfer exist both on SAP ECC and on APO side,similar as with the PPM. There is however no possibility to re-use the PPMUser-Exits. The Badis on SAP ECC-side are mainly suited to manipulate thePDS data before the transfer to APO. Vice versa the Badis on APO-side are bestsuited to manipulate the PDS before saving in APO (e.g. using APO specificinformation) or to influence the order creation.



The following Badi exists on ECC -side for the PDS transfer:

� CHANGE_CIF_STRUCTURES. Here it is possible to change all fieldswhich are transferred via CIF.

� CHANGE_EWB_STRUCTURES. This method is called before the ECC-data is converted for the CIF. It is an appropriate place e.g. to processalternative sequences (see also example 2 in note 357178).

� CHANGE_OPERATION contains all fields on operation level (like themethod CHANGE_CIF_STRUCTURES) but provides an easy access to dataon operation and activity level as the mode priority.

� TRANSFER_ALLOWED allows the online-transfer of master data changesfrom ECC .

� TRANSFER_FINISHED� OPERATION_TRANSFERRED allows the transfer of operations without

duration.� CHANGE_REQCAP allows the definition or manipulation of the continuous

capacity requirement (variable order fix) of an activity for the PP/DS-PDS,see note 445810.

� NO_RESOURCE_WORKCENTER_CLASS. The value X controls thatthe resource classification is not used to create alternative modes. This isnecessary if alternative sequences are used, because for PDS either alternativesequences or resource classification can be used to create alternative modes.

� TRANSFER_STD_ROUTING must be set to control that a change in areference routing leads to change pointers for the referenced standardroutings.

� USE_OPERATION_CLASSIFICATION allows a standard evaluation ofoperations. This is required for Block Planning with non configurableproducts.

� PDS_IMO_SELECTION filters production versions from CIF-transfer.

The following Badis exist on APO-side:



/SAPAPO/CURTO_CREATE

� CIF_IMPORT allows the manipulation of all data after CIF-transfer.� CREATE_PPM creates a rudimentary PPM as well when a PDS is

transferred. The ECM is not considered for the creation of the PPM � i.e. anarbitrary status of the PDS is taken as a basis. There are historical reasonsfor this method and it is not recommeded to use it.

� BLOCK_PLANNING_RELEVANCE allows to set activities relevant forBlock Planning. This might be interesting for activities which are notrelevant for Block Planning by default, e.g. set-up.

� VARIANT_WITH_OWN_VALUATION allows to manipulate thepropagation of CDP-characteristics.

� CREATE_CTM_PDS creates a CTM-PDS when transferring a PPDS-PDS� FILL_COST_FIELDS allows the maintenance of cost fields for the

PP/DS-PDS

/SAPAPO/CURTO_SNP

� � CIF_IMPORT allows to manipulate all data after CIF-transfer.� CALC_BUCKET_CONSUMPTION calculates the bucket capacity

consumption. /SAPAPO/CURTO_SNPDEF is a default implementation tocalculate the bucket consumption from the standard values for the duration.

� CHANGE_SNP_PDS_R3 changes the data of the SNP-PDS (from SAPECC)

� FILL_COST_FIELDS allows the maintenance of cost fields for theSNP-PDS.

Planning with the PDSIf a PDS is transferred via CIF, the field �plan explosion� in the product masteris set to �5 � PDS generated from SAP ECC� as well. PP/DS will therefore onlyuse the PDS as a source of supply for planned orders. SNP does not consider thissetting and uses PDS and PPM equally.

Planned Order Conversion from SNP to PP/DSDuring planned order conversion from SNP to PP/DS, a source of supply has tobe selected for the PP/DS order. Though there is no link between a SNP-PDSto a PP/DS-PDS, the first attempt is to use a PP/DS PDS which corresponds tothe same production version.

If a SNP-PPM is generated from a PP/DS-PPM that has alternative modes (in thiscase usually more than one SNP-PPM is generated from one PP/DS-PPM), it ispossible to determine the mode for the PP/DS order during conversion. Thisoption does not exist with the PDS.



Planned Order Integration from SNP to SAP ECCIf SNP planned orders which are created with a PDS are transferred to SAP ECC,the assignment of the planned orders in SAP ECC to the production version istransferred from APO. This is a difference to the SNP planned orders which werecreated using a PPM, because the assignment of the according planned orders inSAP ECC to the production version was controlled by the SAP ECC settings.

It is neither way possible to trigger the conversion of SNP planned orders toproduction orders from APO. The planned order in SAP ECC can be convertedin both cases.

Parallel Use of PPM and PDSGenerally a parallel use of PPM and PDS is possible. In PP/DS the usage of eitherPPM or PDS is controlled by the field �plan explosion� in the product master onlocation/product level. The usage of PPMs for some location products and PDS�sfor others is possible with the exception of phantoms. If the top level (havingthe phantom as input) is planned with PDS, then the phantom has to be plannedwith PDS as well.

For SNP both PPM and PDS are regarded as potential sources of supply for thesame location/product. The selection is performed based on priorities, costs orquota arrangements. The restrictions regarding the phantoms applies for SNPas well.

For the SNP-PPM generation another restriction applies: The generation reportfor SNP-PPMs checks whether the field �plan explosion� in the product mastersupports the explosion of the PPM for PP/DS. If the PDS is used for thisproduct, this is not the case. Therefore it is not possible to create SNP-PPMsfrom PP/DS-PPMs if PDS is used for PP/DS. The reason for this is that for theSNP-PPM generation a PP/DS planned order with the source PPM is created.

Coexistence of PPM and PDSAs long as orders exist which have the PPM as the source of supply it is notpossible to delete those PPMs. For PP/DS the flag �plan explosion� controls thatonly PDS are used from the point in time the PDS are transferred to APO. In SNPboth PPM and PDS might be valid sources of supply. To enforce the change fromPPM to PDS in SNP it is necessary to decrease the priority resp. to increase thecosts of the SNP PPMs compared to the SNP-PDS. To de-activate the SNP-PPMsas long as there are existing orders using that PPM has the consequence thatthe orders can neither be changed (except for a manual change of the source ofsupply) nor deleted any more.

For PP/DS the PPMs might be required after the switch to PDS as well as longas production orders exist which were created with the PPM. Note 705018 andthe next paragraph provide additional information.



Implication of a Change for Existing PP/DS OrdersThe planning run adjust the source of supply for the planned orders, i.e. a newplan explosion is performed using the PDS. This applies to both non-fixed andfixed planned orders. The PP/DS-planning time fence does not have any influenceon this behavior.

For production orders the source of supply is not changed in the planning run. Ifquantities are changed manually and the production order is not yet released, apop-up allows to decide whether to perform a new plan explosion with the PDS orto adjust the order durations and quantities proportionally.

A change of the planned order or the production order in SAP ECC always causesa new plan explosion in APO.

If it is desired to change the source of supply of all planned orders and productionorders to PDS as soon as possible, it is recommended to perform an initial transferfor the production orders from SAP ECC. Make sure that the Badi mentioned innote 581048 is implemented the way that a plan explosion is triggered duringtransfer. Note 705018 described the procedure for this.

For detailed scheduling the change in the source of supply has no consequences.

Regarding the planning and scheduling considering validity intervals (especiallyin combination with ECM) note 385602 provides some important information.

Implication of a Change for Existing SNP OrdersIn a planning run (e.g. location heuristic) all non-fixed SNP planned orders arediscarded and new ones are created including a new selection of the source ofsupply. If the priority resp. the costs of the PPM have been adjusted, the neworders will use the PDS. For fixed orders the PPM remains the source of supply.

For these orders the source of supply has to be changed either manually or thePPM has to be kept as long as there are no more orders referring to it.

PDS RestrictionsNote: Note the restrictions on the following slides and see note 517264.



SCM 4.0 PP/DS Production Data Structure Restrictions

� Characteristics Dependent Planning (CDP)� Block Planning� Extended Order Generation (EOG)/Mulitple Output Planning (MOP)� Trim Optimization� CTM/SNP� SNP PPM Creation� Parameter Effectivity� Batch Selection Criteria from BOM Positions� PDS is DISPLAY ONLY!� PPM CIF user exits are not supported.

Note: If you want to migrate from PPM to PP/DS runtime objects, youhave to maintain specific user exits.

Note: If migrating from PPM to PDS, users will have to set the indicatorin the product master (or Global Setting - IMG) to decide whether the SAPSCM uses PPMs or PP/DS runtime objects for planning.

Caution: In the standard system, you cannot display alternative routingsequences in a PP/DS runtime object generated in ECC. You can usethe BADI implementation of the CUSLNTRTO_ADDIN BAdi todisplay alternative routing sequences in alternative modes under theprerequisites described in the following. With this implementation, theselection conditions of the alternative sequences are displayed as selectionconditions for the alternative modes.

1. The number of activities generated from the operations is the sameas the number of operations of the alternative sequence in the area ofthe standard sequence that is replaced by alternative sequences.

2. There are only alternative sequences for the standard sequence, andno alternative sequences for alternative or parallel sequences.

3. The operation numbers of the alternative sequence are the same asthe operation numbers of the standard sequence (this is necessarybecause the mode linkage category �Same mode numbers� is used).

See note 507025 for more details



The supported functionality of the PDS differs from the PPM. The differences aredescribed in note 744445. The limitations regarding the PDS functionality arelisted in note 713429 and are described in the following:

� General: It is not possible to maintain PDS data in APO. Additional fields(fields which are not transferred from SAP ECC have to be maintained viaBAdI.

� Block Planning: Classification of operations with class type 018 is notpossible for recipes. If recipes are used on SAP ECC sides and BlockPlanning should be used on APO side, a BAdI has to be implemented forthe classification of the activities.

� Variant Configuration & Object Dependencies: The transfer of objectdependency and classification from SAP ECC to APO with the PP/DSruntime objects works only with SAP ECC release 4.6B and above. Theintegration of variant configuration can only be used with SAP ECC.

� CDP: To add characteristic requirements to an input node it is necessaryto implement the BAdi method CHANGE_EXPL_RESULT of BAdi/SAPAPO/CULLRTOEXPL

Restrictions exist in mixed scenarios (VC (Variant Configuration) and CDP).It is not supported to have components (input and output nodes) that arerelevant for a variant configuration scenario below a CDP relevant masteroutput. CDP relevant components below a VC relevant master output will beonly valuated with a copy of the configuration of the master output or withan own instance configuration that comes from a multilevel configuration.It is not possible to valuate them per object dependency that is linked tothe component.

� PP-PI / Recipes: The integration of the PDS with ECC for recipe can onlybe used with ECC release 4.6B and higher. Relationships between phases ofdifferent recipes won�t be supported. No material quantity calculation. Noproduct flow (container resource)

� Comparison Report PDS and ECC -Explosion: The comparison report(transaction /SAPAPO/RTO_ORD_COMP) does not compare

� sub-operations and secondary resources� set up groups and set up keys� configuration of the input and output products� durations of order internal relationships

� Continuous Input / Output: Continuous Input / Output has to be set viaBAdI.

� Planning with Phantoms: When using the PDS it is not allowed to usethe same phantom several times in the BOM of a finished product if acomponent of this phantom is assigned to different operations in the routing.

� SNP-PDS Generation from SAP ECC :



� ECM for operations, activities, modes and capacity requirements isnot supported for the SNP-PDS

� Only data valid at the provided routing explosion date will beconsidered.

� Only bucket or mixed resources, otherwise the queue will stop withan error

� No product variants, configuration will be ignored� Fixed duration (multiple of days)� No breaks between the activities (will be ignored)� Only linear chains of activities (relations in recipes will be checked

and cause an error if not linear)� Only the standard sequence of the routing will be considered� TDPP only via BADI

� SNP-PPM Generation:It is not possible to generate SNP-PPMs from aPP/DS-PDS. Instead the generation of the SNP-PDS from ECC should beused (as mentioned above).

If the PDS is used in PP/DS it is not possible to generate SNP-PPMs fromPP/DS-PPMs either.

� Interactive Planning in SNP: For interactive planning with alternativePDSs in SNP is possible as with PPMs. However, there is no descriptiondisplayed to differentiate between the alternative PDSs.

If PP/DS-PDS exist but no SNP-PDS, the PP/DS-PDS will be displayedas possible sources of supply. If the PP/DS-PDS is chosen, the warningmessage appears �PPM/PDS not maintained for product & location�.

� The PDS is NOT RELEASED for the following functionality:

� parameter efficiency� trim optimization� extended order generation (EOG)� multiple output planning (MOP)

� CTM: For CTM the operation sequence has to be linear.� Alternative Modes: For the generation of alternative modes either

alternative sequences or resource classification can be used but not both.� Supply Chain Engineer: The PDS is not integrated into the Supply Chain

Engineer and the Supply Chain Cockpit.



Exercise 21: Production Data Structuresin SAP SCM

Exercise ObjectivesAfter completing this exercise, you will be able to:� Transfer Production Version to PDS in SAP SCM

Business ExampleYour products change components frequently, and planning the run out is anexcellent opportunity to save money by reducing the amount of waste. In orderto do this properly, you need a master data object that will support the ECMfunctionality of SAP ECC. You will generate an SAP SCM Production DataStructure from the SAP ECC production version by use of the CIF.

Task 1: Generate the SAP SCM PDSIn order to all SAP SCM to use the engineering changes created through theSAP ECC ECM tool, you will generate a SAP SCM PDS from the SAP ECCproduction version.

1. Create and integration model that will generate an PDS from your productionversion A003 for your ZAP-1## product at location 3100.

Enter the following parameters for your integration model:

Field Name ValueModel Name Group##


Application PDS

2. Activate you new integration to create the PDS in SAP SCM.

Task 2: Navigating the PDS in SAP SCMYou have transferred the production version via the CIF. You need to becomefamiliar with the results and navigate the new structure.

1. Examine you new PP/DS Production Data Structures for you ZAP-1## atlocation 3100 for Model 000. Review the PDS for production version 0003

2. Which Materials are included in the PDS?




Ma-terialNo.

Activity I/OType

Ma-terialCons.(v)

I/O Scheduling I/OOffset




3. How Many Operations were transfered? Select operations tab. SelectOpen Next Detail level to see operation details.

4. How Many Activities were transferred?

5. How many modes were created and find the details? From the Operationstab. For each operations select Open Next Detail level to see the activitydetails. To see more details select Open Next Detail level.

Resource Base Qty Var. Dur Fixed Dur. ActivityNo.

6. Where any relationships created?




Predecessor Successor Relatshp coverate Con-straintType



Solution 21: Production Data Structuresin SAP SCMTask 1: Generate the SAP SCM PDSIn order to all SAP SCM to use the engineering changes created through theSAP ECC ECM tool, you will generate a SAP SCM PDS from the SAP ECCproduction version.

1. Create and integration model that will generate an PDS from your productionversion A003 for your ZAP-1## product at location 3100.

Enter the following parameters for your integration model:



Application PDS

a) SAP ECC menu path: Logistics→ Central Functions→ Supply ChainPlanning Interface→ Core Interface Advanced Planner and Optimizer→ Integration Model→ Create

b) In the General Selection Options for materials enter Material ZAP-1##and plant 3100.

c) Select the PDS (R3 ) Indicator.

d) Select Further Restictions, and restrict the PDS generation toproduction version A003.

e) Select Execute

f) Select Save




2. Activate you new integration to create the PDS in SAP SCM.

a) SAP ECC menu path: Logistics→ Central Functions→ Supply ChainPlanning Interface→ Core Interface Advanced Planner and Optimizer→ Integration Model→ Activate

b) Enter the following Values:



Application PDS

c) Select Execute

d) Double click on your integration model you just created, and select

Start Activation

Task 2: Navigating the PDS in SAP SCMYou have transferred the production version via the CIF. You need to becomefamiliar with the results and navigate the new structure.

1. Examine you new PP/DS Production Data Structures for you ZAP-1## atlocation 3100 for Model 000. Review the PDS for production version 0003

a) SAP SCM Menu: APO→ Master Data→ Production Data Structure(PDS)→ Display Production Data Structures

2. Which Materials are included in the PDS?




Ma-terialNo.

Activity I/OType

Ma-terialCons.(v)

I/O Scheduling I/OOffset

ZAP-1##

MasterOutput

1.000pc

Intregal 0

BTL-1##

001000000001S Input 4.400pc

Continuous withOffset

0

CAP-1##

002000000002P Input 4. pc Continuous withOffset

0

T-BOX-1##

003000000003P Input 1 Intregal 0

T-FD1##002000000002P Input 12.00L

Intregal 86,400(sec)

T-LB-100

001000000001S Input 4.200 Intregal 0

3. How Many Operations were transfered? Select operations tab. SelectOpen Next Detail level to see operation details.

Answer: Three operations were transfered, Label Bottles, Fill bottles, PackBottles into corragated cases.

4. How Many Activities were transferred?

Answer: Four Activities, Two for Labeling (setup and Production) and onefor filling and one for the case packer.

5. How many modes were created and find the details? From the Operationstab. For each operations select Open Next Detail level to see the activitydetails. To see more details select Open Next Detail level.

Resource Base Qty Var. Dur Fixed Dur. ActivityNo.

WT-LA-BEL_3100_001

2,000 0.000 32,000 Sec 001000000001S

WT-LA-BEL_3100_001

2,000 3,999.6 Sec 0.000 001000000001P

WT-FILLER_3100_0011,200 3,999.6 sec 0.000 002000000002PWT-CSPKR_3100_0013,000 3,999.6 Sec 0.000 003000000003P

6. Where any relationships created?




Predecessor Successor Relatshp coverate Con-straintType

001000000001S001000000001P2-End/Start X - Yess 2-Min/MaxIntvl

00100000001P 002000000002P2-End/Start No 0 Min Int002000000002P003000000003P2-End/Start No 0 Min Int



Lesson Summary

You should now be able to:� Identify the dependencies between SAP ECC production version, and SAP

SCM Production Data Structure (PDS).�

Related InformationConsulting notes:

� 744445 Funktionalitäten der Stammdaten im APO zu Release 4.1� 719556 Using class nodes in production data structure� 717756 Times on the relationship (PLUGIN)� 713429 Release Restrictions for SCM 4.1� 709886 Using order and work breakdown structure BOMs� 709884 consulting notes PDS and ECC RTO� 707184 Documentation: Functions of the master data in APO 4.0� 706452 Automatic generation after master data change� 705018 Change from PPM to PDS (documentation)� 694140 Change of validity mode during PP/DS PDS explosion� 688092 Classification and alternative modes in the PDS� 688091 Classified operations during the PDS transfer� 641876 Use of parallel sequences in PP/DS runtime object� 636518 Extended integration reference operation sets� 610873 APO: Using reference characteristics within the PP/DS-LZO� 581048 BADI:Decision for quantity adjustment and fixing� 578095 Evaluating procedures with restrictable characteristics� 528393 iPPE objects do not exist in the liveCache� 507025: Examples for customer enhancements II� 433300 Consideration of times for the second capacity� 427013 Incorrect validities after operation number is changed� 426705 Guidelines for note searching in APO-PPS� 392604 APO: Object characteristics in APO� 385602 Validity in APO (Documentation)� 357178 Examples for customer enhancements in runtime obj.� 357178 Examples for customer enhancements in runtime obj. generated

in ECC� 331803 PPM display of the iPPE runtime object



Enhancement Consulting notes

� 706452: Automatic generation after master data change� 694140: Change of validity mode during PP/DS PDSexplosion� 507025: Examples for customer enhancements II� 433300: Consideration of times on the second capacity� 427013: Incorrect validities after you change operation number� 357178: Examples for customer enhancements in the runtime object

Configuration

� 610873 APO: Use of reference characteristics in PP/DS PDS� 578095 Evaluation of procedures with restrictable characteristics� 392604 APO: Reference characteristics in APO

General information

� 707184 documentation: Functions of master data in APO 4.0� 705018 Change from PPM to PDS (documentation)� 688091 Classified operations during PDStransfer� 641876 Use of parallel sequences in PP/DS runtime object� 636518 Extended integration of reference operation sets


SCM215 Lesson: Recipes and the PPM Generation

Lesson: Recipes and the PPM Generation

Lesson OverviewIn this lesson we will learn, how the transfer of Master Recipe master data inSAP ECC are going to be handled through the CIF integration model, and theirrelationships to the corresponding PPM master data generated in SCM.


� Explain the difference between a master recipe and a BOM and routing.� Transfer a recipe to SAP SCM and explain the PPM functionality.

Business ExampleAssume that one of your company�s plants supports the production of a bulkmaterial such as T-FD1## Detergent, that is shipped to another facility to completethe finished good production. The bulk material is processed in batches. You needto create the master recipe to model this manufacturing process.

Master Recipes in SAP SCMMaster recipes are SAP ECC master data that describe an enterprise-specificproduction process in SAP�s process industry module, and is used in constructingindividual process orders or for rendering services. The master recipe is anothertype of �task list�, which is similar to a discrete manufacturing routing. Masterrecipes are mainly used by MRP for planning, and subsequently in ProcessOrders management, for the manufacture of products, and performing in-processinspections. You can also use them to describe the clean-out or changeover of aproduction line. Master recipes are also used by product costing as the basis fordeveloping unit costs. Furthermore, the engineering change approval procedurefor master recipes, and their functions for planning and documenting changes,meet the most important requirements of Good Manufacturing Practices (GMP).



Figure 178: Functions of a Master Recipe

The features of the master recipe were defined in accordance with the internationalstandards of the European Batch Forum (EBF), the norms working committee formeasuring and control techniques in the chemical industry (NAMUR), as well asin accordance with standard S88 of the Instrument Society of America (ISA).In a master recipe, you model:

� Phases - the individual steps to be carried out in a process, that is, theoperations and its subdivisions

� Activities - (ex. - setup/charge, processing, tear down/discharge) that areto be carried out in a phase and are used as the basis for determining dates,capacity requirements, and costs

� Process Sequence - by defining predecessor-successor relationships (ex. -finish-start, start-start) between phases

� Materialsthe use and production of in the course of the process(component/finished good quantities)

� Resources - the use of equipment or people by operations and phases bydefining activities times (ex. - fixed time, variable time)

� Quality inspections - to be carried out during production to support qualitymanufacturing

� Process Instructions - used to collected data for costing, materialmovements, and quality information (digital signatures) via a web based tool,or via process control system (PLC).

We will now discuss how the Master Recipe is different from the routing and howthose differences are modeled in SAP SCM



Rules for Transferring Master Recipes�s to PPM�sIn many ways, the rules for transferring the elements of a SAP ECC Master Recipeto a PPM, are similar to how the elements of a routing are converted to a PPM.

Figure 179: Master Recipe and PPM: Basics

The transferred PPM�s name is made up from the routing type (2),group/counter number, version number, and with usage P. For example,25000004001A001T-FD100 3100. 2 is the task-list type, 50000040 is the recipegroup number, 01 is the recipe group counter, A001 is the production version,T-FD100 represents the material assignment in the recipe (18 characters reserved),and 3100 is the plant where the recipe is maintained.

The lot size and PPM validity time intervals are determined from the materialmaster production version. The lot size of the recipe has no impact. The recipe texttransfers as the plan text, and the production version description as the PPM text.

PI Operations with resources/work centers in an active integration model, thathave scheduling relevant control keys, will transfer across to SAP SCM asoperations (type 1), however they will have not activities. As of SAP APO 3.0,the recipes are transferred to a new PPM structure. Operation types have beenintroduced so that the recipe operations, the phases and the dependent resources ofthe recipe are transferred as separate operation types.

� 0 - PP operation� 1 - PI operation� 2 - PI phase� 3 - PI dependent resource)



PI phases with resources/work centers in an active integration model, that havescheduling relevant control keys, will transfer across to SAP SCM as operations(type 2). Each new �operations� will have activities to which components andresources will be allocated. The scheduling relevant capacity category of theprimary operation resource in the SAP ECC master recipe, is transferred as theprimary operation resource in the PPM. Additional capacity categories of theprimary operation resource in the SAP ECC recipe, are transferred as secondaryresources in the PPM. (not to be confused with SAP ECC secondary resources).After the activities transfer across to the SAP SCM PPM, the single primaryresource and the also the possibly multiple secondary resources, are grouped underone activity mode. The rules for creation of PPM activities are different in MasterRecipes than in routing transfers. In a routing, each operation time segment (setup,process, tear down), that itself has been calculated from activities and Work Centerscheduling formula, is then converted to an SAP SCM activity. In contrast, in themaster recipe, each phase is simply converted to an SAP SCM activity.

The BOM with its components are transferred to SAP SCM, as long as it is definedwith the usage and alternative in the production version of the header material.Component assignments to the phases of the SAP ECC master recipe, are nowassigned to the first operation (type 2) of the first activity of the correspondingoperation, and the output product is assigned to the last operation (type 2) of thelast operation in the SAP SCM PPM.

Figure 180: Relationships/Activity Relationships

When master recipes are transferred to SAP SCM several differences betweenRouting transfers and Recipe transfers exists. In a PPM, Finish-Start relationshipsare generated from ascending sequential numbered operations of a routing. InMaster Recipes the original phase time sequencing relationships, that were built



into the master recipe, are preserved. Only FINISH-START and START-STARTrelationships are modelled however. The variable and fixed time durations of aphase in a master recipe, come across directly to the PPM activity, as variableand fixed time durations. There are no Wait and Move times in a Master Recipeoperation to consider. All time segments are modelled as phases.

In SAP ECC , companies can use resource networks to model some of theproduction dependencies between several different resources. In addition tothis functionality, the master recipe can use resource selection. This is doneby classifying each resource with specific information regarding its� usage, andthen by classifying a specific operation in a recipe with certain selection criteria.The operation in question receives a �dummy �resource that will not be used inproduction, but at order release time a specific resource must be chosen that willallow production. During the master recipe transfer to SAP SCM, the resourceselection condition of the planning resource in an operation is triggered. ThePPM activity, now contains any resources that meet the selection condition of theoperations in the recipe that match the selection condition.

Caution: During the transfer, the CIF is not limited to the resourcenetwork. It will add any resource the PPM as an alternative mode if itmeets the operations classification selection conditions.

If an SAP ECC phase has a secondary resource attached, an additional operation(type 3) will be created in SAP SCM. This operation will have a START - STARTrelationship with its �parent�phase. Any offset times will be transferred as well.

If their are any components that are directly assigned to the phases in the SAP ECCMaster Recipe, these assignments are kept intact, in the SAP SCM PPM also. If noassignment has been made, all components will be assigned to the first operation(type 2) in the PPM. Companies have the option of modeling co-products andby-products in SAP ECC . If a recipe contains one or both, the materials will betransferred to SAP SCM if the material master for the by-product or co-product isin an active integration model. Each of these secondary materials will receive aPPM name in the PPM. In addition on the header material the Primary materialflag will be set in the component overview were the header material is received.



Exercise 22: SAP ECC Master Recipeto SAP SCM Production Process Model(Optional - time permitting)

Exercise ObjectivesAfter completing this exercise, you will be able to:� Display an existing Master Recipe in SAP ECC� An integration model has to be created, to accomplish the transfer of a single

Master Recipe from SAP ECC , to a Production Process Model in SAPSCM. The integration model has to be activated, and the transfer initiatedfrom the SAP ECC to the SAP SCM system. The transfer will result in anewly created Production Process Model in the SAP SCM system.

Business ExampleIn the SAP ECC system there is a material T-FD1##, plant 3100, that has to beplanned in the SAP SCM system. The SAP SCM system must have a validproduct master, the plant location, the production resources, and the productionprocess model (PPM), defined for product T-FD1##. Transferring products,locations, resources, has been presented in earlier lessons. This exercise addressesthe remaining task of transferring a Master Recipe as a PPM.

Task 1: Create and then Display the Master RecipeData in SAP ECCDisplay your Master Recipe for material T-FD1##, plant 3100, version A001.Display and review the components, finished goods, operations, and classificationsettings for this Master Recipe, and answer the following questions.

1. Review the production version A001 in material T-FD1##.

2. Display the just copied Master Recipe for material T-FD1##, plant 3100,version A001.




3. Which resources are assigned to the Resource Network NETZ-00?

4. What is the Relation Type of the relationships between the phases?

Task 2: Integration of SAP ECC Master Recipe withSAP SCM PPM. Adding Master Recipe to an IntegrationModel and Activate PPM transfer to SAP SCMSince all of these prerequisite objects have been selected in previous integrationmodel�s, the remaining task is to enhance the integration model for the PPM�s,with the PPM for material T-FD1##, plant 3100, version A001.

1. Change the integration model to transfer your new Master Recipe to SAPSCM. Enhance an existing integration model in SAP ECC , in preparationfor the transfer of the Master Recipe for material T-FD1##, plant 3100.Adding the Master Recipe Material T-FD1##, Plant 3100, Version A001,to an Integration Model under the PPM transfer settings. Verify that thefollowing check-boxes (object types) must also be selected in the integrationmodel -- Work Centers, PPM�s, Classes/Characteristics, besides Materialsand Plants. Use the following Data to identify your integration model

Field Data

Model Name GROUP-##

Logical system APOCLNT800


Note: Only when the similar message appears have you successfullygenerated an integration model:

Note: Upon exiting the transaction you will be asked to save as avariant. Later in the course we will use this concept to pass changesto other master data that updates occur frequently.





Note: By entering only the Model Name we will see all theintegration models that you group has created over the duration ofthe class. Entering the Logical System and the APO Application willlimit the number of integration models that are retrieved.


Task 3: PPM in SAP SCM after transfer from SAP ECCMaster RecipeAs a result of creating and activating your integration models in order to transferyour Master Recipe�s, we will now turn to exploring the result of your previoustask steps. In SAP SCM, the result with be the Production Process Model or PPMof T-FD1##. In order to better understand this new master data object, we willexplore the PPM, and understand how it is built from the Master Recipe.

1. Review the new PPDS PPM that was generated via the CIF, for T-FD1## atplant 3100.


3. What is the lot size validity and the PPM name for this PPM?




4. How many Operations and Phases does your PPM contain?

5. How many activities does each phase in your PPM contain?

6. How many materials are contained in your PPM versus the SAP ECC BOM?

7. Using the work area on the right drill down to see which components areallocated to the production activity and fill in the follow table with the


, then select the production activity and select Select row . Drill into the

logical components to get the quantities. Select Return to activity to getback to the activity details screen.




ShortText

I/Oindicator

Consumption type Variable Qty FixedQty

8. How many modes does this first phase/activity 0110 use, and what is theduration of this activity?

9. Does this Activity utilize any other resources during manufacturing?



Solution 22: SAP ECC Master Recipeto SAP SCM Production Process Model(Optional - time permitting)Task 1: Create and then Display the Master RecipeData in SAP ECCDisplay your Master Recipe for material T-FD1##, plant 3100, version A001.Display and review the components, finished goods, operations, and classificationsettings for this Master Recipe, and answer the following questions.

1. Review the production version A001 in material T-FD1##.

a) Menu Path:Logistics→ Production - Process→ Master Data→Material Master→Material→ Display→ Immediately. Enter Material

T-FD1##. Press the Enter key.

b) Select the MRP4 view. Press the Enter key. Enter the plant 3100.

Press the Enter key. In the MRP4 view, press the Prod Versionspush-button. In the version overview pop-up that appears, select A001for the first Version, Recipe for detergent production ZAP-1##xt, andpress the Details icon. The system will pop up a message that it willdefault the validity dates. Acknowledge the message and you will cometo the Production Version Details pop-up for version A001.

2. Display the just copied Master Recipe for material T-FD1##, plant 3100,version A001.

a) Menu Path:Logistics→ Production - Process→ Master Data→Master Recipes→ Recipe and Material List→ Display. Enter MaterialT-FD1##, Plant 3100. Press Enter.

b) To see the finished product, go to Recipe header tab. Press the MaterialAssignments push-button. You will see the material T-FD1##, plant3100, with charge quantity ranging from 1000 to 20,000 liters. To get

back, go to Recipes tab and press the Details for recipe icon at thelower left of the screen.

c) To see the resource network, go to Recipe header tab. Press theResource Network Graphic icon for NETZ-00.

d) To see the operations and phases, go to the Operations tab. The MasterRecipe has three operations defined -- 100 Charge, 200 Reaction, 300Cool, each with three to four phases defined.




e) To see the phase relationships, select all the operations and phases,and press the Operation graphic icon. You may have to switch of thelegend, to see the phase-relationship diagram. Predecessor-SuccessorRelationships have been defined between the phases. The last phaseof an operation, and the first phase of the subsequent operation are tobe started simultaneously.

f) Look at the primary resource for operation 200. The primary resourcefor operation 200 Reaction is a Planning Resource T-DTG100, and isnot defined in the resource network.

g) To see the resource selection condition, select operation 200 andpress the Resource Selection criteria icon (at bottom of screen). AResource Selection Condition for operation 200 has been defined,with the characteristic values - Polyethylene Coated, 30 RPM. Theclass is REAK_00.

h) To see the transportation resource, select the last phase 330 and pressthe Secondary Resource icon. A Transportation Resource T-DTT100(capacity category 10) has been defined as a secondary resource at thelast phase of operation 300 Cool.

i) To see the production version, from the Materials tab press theProduction Version icon. The Production Version A001, has a validlot size range defined (this will become the lot size range of the PPM).For this Production Version, the master recipe (Task List Type 2,Group, Counter) is defined as Group 50000040/1. For this ProductionVersion, there a BOM (Usage 1, Status 1) is defined. Press the Checkpush-button. The consistency check report, says that the Task list andBOM exist from today�s date. Press the Cancel icon. The Check statlights will remain red, because you are in display mode. Press theClose screen icon. Remain in the displayed Master Recipe to answerthe questions in the next exercise steps.

3. Which resources are assigned to the Resource Network NETZ-00?

Answer: The resources are T-DTM100, T-DTR100, T-DTR200, T-DTR300,and T-DTA100

4. What is the Relation Type of the relationships between the phases?

Answer: Finish-Start




Task 2: Integration of SAP ECC Master Recipe withSAP SCM PPM. Adding Master Recipe to an IntegrationModel and Activate PPM transfer to SAP SCMSince all of these prerequisite objects have been selected in previous integrationmodel�s, the remaining task is to enhance the integration model for the PPM�s,with the PPM for material T-FD1##, plant 3100, version A001.

1. Change the integration model to transfer your new Master Recipe to SAPSCM. Enhance an existing integration model in SAP ECC , in preparationfor the transfer of the Master Recipe for material T-FD1##, plant 3100.Adding the Master Recipe Material T-FD1##, Plant 3100, Version A001,to an Integration Model under the PPM transfer settings. Verify that thefollowing check-boxes (object types) must also be selected in the integrationmodel -- Work Centers, PPM�s, Classes/Characteristics, besides Materialsand Plants. Use the following Data to identify your integration model




Field Data

Model Name GROUP-##

Logical system APOCLNT800


Note: Only when the similar message appears have you successfullygenerated an integration model:

Note: Upon exiting the transaction you will be asked to save as avariant. Later in the course we will use this concept to pass changesto other master data that updates occur frequently.

a) Menu Path: Logistics→ Central Functions→ Supply Chain PlanningInterface→ Core Interface Advanced Planning and Optimizer→Integration Model→ Change

b) Enter the values for the Model, Logical system, Application, as theyshowed in the table above.

c) Select Execute .

d) In the filter object section place your cursor on Production Process

Model, and choose Modify

e) Select PPM, Further Restrictions push button, enter the MaterialT-FD1##, Plant 3100, Production Version A001, and be sure to deletethe date.

f) Select Execute to Generate the changed integration model. Say noto the pop-up for further changes to the selections.

g) In the filter object section place your cursor on Production Process

Model, and choose Add . Save the integration model.

h) Select Back to return to session manager.





Note: By entering only the Model Name we will see all theintegration models that you group has created over the duration ofthe class. Entering the Logical System and the APO Application willlimit the number of integration models that are retrieved.




c) Select the integration model that contains your new PPM

Hint: Look in the APO Application for PPM.


view

e) Double click on the line labeled Production Process Model


g) Select the line with the date/time stamp and select Set to Active/Inactive





Task 3: PPM in SAP SCM after transfer from SAP ECCMaster RecipeAs a result of creating and activating your integration models in order to transferyour Master Recipe�s, we will now turn to exploring the result of your previoustask steps. In SAP SCM, the result with be the Production Process Model or PPMof T-FD1##. In order to better understand this new master data object, we willexplore the PPM, and understand how it is built from the Master Recipe.

1. Review the new PPDS PPM that was generated via the CIF, for T-FD1## atplant 3100.

a) SAP SCM menu path: APO→ Master Data→ Production ProcessModel→ Production Process Model

b) From the Choose plan screen, select Choose plan through PPM,enter you product T-FD1##, plant 3100, and Use of a Plan P (PPMProduction planning detailed scheduling). Select the first plan numberthat should contain A001.

c) Select Display


Answer: If you followed the naming convention suggested in theexercises, for your Detergent Master Recipe, the Plan number is:2RECIPE0201A001T-FD102 3100. The key is concatenated from 2 - MasterRecipe, RECIPE02 - Routing Group number, 01 - Group counter, A001- Production version, 3100 - Plant.

3. What is the lot size validity and the PPM name for this PPM?


b) The PPM generated key is similar to T-FD1##3100A001000000002T-DET1##01011. Your lot sizes arevalid from 1 to 20,000




4. How many Operations and Phases does your PPM contain?

Answer: From within the window at the top left, drill down under theheading Operations. PPM�s transferred from Master Recipes, will result inmultiple operations, of different operation types, and is different from PPM�sthat are transferred from BOM�s/Routings. You will see three operations oftype 1 - PI operation, ten operations of type 2 - PI phase, one operation oftype 3 - PP/PI sub-operation0010: Charging 0110: Charge, 0120: Mix, 0130: Add water, 0140:Discharge0020: Discharge: 0210: Charge, 0220: Add Butanol and NaOH, 0230:Discharge0030: Cooling:0310: Charge, 0320: Cool, 0330: Discharge, 0330/0001:Discharge (sub-operation)

5. How many activities does each phase in your PPM contain?

Answer: From the top left window continue to drill down, first under phase0110 - Charge. If you set up your Master Recipe as directed, your PPMshould contain one activity of Activity type P - Production for each phase.

6. How many materials are contained in your PPM versus the SAP ECC BOM?

Answer: In the top left window, choose the tab labeled Products. As aresult of the transfer, you should have five materials T-RD100, T-RD200,T-RD400, T-RD500, T-DET-CNDST, and the T-FD1##. T-RD300 Waterwas left off, because bulk items are not relevant for SAP SCM.

7. Using the work area on the right drill down to see which components areallocated to the production activity and fill in the follow table with the


, then select the production activity and select Select row . Drill into the

logical components to get the quantities. Select Return to activity to getback to the activity details screen.




ShortText

I/Oindicator

Consumption type Variable Qty FixedQty

T-RD100 I -Input S - Start of activity 975 LT-RD200 I - Input S - Start of activity 400 L

T-RD400 I - Input S - Start of activity 1000 L

T-RD500 I - Input S - Start of activity 1,400 L

T-DET-CNDST

O -Output E - of activity 100 L

T-FD1## O -Output E - of activity 5000 L

8. How many modes does this first phase/activity 0110 use, and what is theduration of this activity?

a) Choose the Mode tab.

b) The activity only has one resourceWT-DTM100_3100_008, and hasa duration of .833 hours.

9. Does this Activity utilize any other resources during manufacturing?

a) Double click on the mode or select Select row .

b) It is only using the primary resourceWT-DTM100_3100_008. Thisresource is a single-mixed resource and represents the machine processrequired to staff the filling lines. There are no secondary resourcesfor this phase.



Lesson Summary

You should now be able to:� Explain the difference between a master recipe and a BOM and routing.� Transfer a recipe to SAP SCM and explain the PPM functionality.


SCM215 Unit Summary

Unit SummaryYou should now be able to:� Explain the concept of a PPM� Explain which fields in a BOM are relevant for planning and how they will

be transferred to SAP SCM� Explain how the following BOM functionality is transferred to SAP SCM� Create BOM in SAP ECC for later transfer to SAP SCM.� Explain which fields and functions in a routing transfer to SAP SCM.� Explain how the following Routing functionality is transferred to SAP SCM:� Explain the need for production versions� Create production versions� Transfer a BOM and a Routing to SAP SCM� Navigate the PPM� Identify the dependencies between SAP ECC production version, and SAP

SCM Production Data Structure (PDS).�� Explain the difference between a master recipe and a BOM and routing.� Transfer a recipe to SAP SCM and explain the PPM functionality.


Unit Summary SCM215


Unit 8Quota Arrangement in SAP SCM

Unit OverviewDuring the course of business, companies often find themselves in a situationwhere one or more products have multiple sources of supply. This situationcould be a distribution center supported by multiple manufacturing locations, amanufacturing location having more than one resource to run a particular productthrough, or a raw material has multiple supplying vendors. In any of these cases,sourcing decisions will need to be made in order to plan the supply source of theitems. In SAP SCM quota arrangements can be used to help support sourcingdecisions.


� Explain the purpose of a quota arrangement, and the different types of quotas.� Create quota arrangements in SAP SCM

Unit ContentsLesson: Quota Arrangements in SCM ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .514

Exercise 23: Modeling quota arrangements in SAP SCM ... . . . . . . . . .521


Unit 8: Quota Arrangement in SAP SCM SCM215

Lesson: Quota Arrangements in SCM

Lesson OverviewDuring the course of business, companies often find themselves in a situationwhere one or more products have multiple sources of supply. This situationcould be a distribution center supported by multiple manufacturing locations, amanufacturing location having more than one resource to run a particular productthrough, or a raw material has multiple supplying vendors. In any of these cases,sourcing decisions will need to be made in order to plan the supply source of theitems. In SAP SCM quota arrangements can be used to help support sourcingdecisions.


� Explain the purpose of a quota arrangement, and the different types of quotas.� Create quota arrangements in SAP SCM

Business ExampleAssume your plant 3100 has a material that is sourced from two vendors. In orderto speed up the planning process, you wish SAP SCM to assist in the sourcedetermination. You need to model this arrangement so that there is a 70/30 splitbetween the two vendors. Additionally in order to maximize cost during planningyou are required to split demand between several of your manufacturing processes(PPMs). Create an arrangement so that 60 % of your ZAP-1## is run on the highspeed lines, 25 % run on the medium speed line, and 5 % runs on your slowestlines.

Quota ArrangementsDuring the course of business, companies often find themselves in a situationwhere one or more items have multiple sources of supply. This situation couldbe a distribution center supported by multiple manufacturing locations, amanufacturing location having more than one resource to run a particular productthrough, or a raw material has multiple supplying vendors. In any of these cases asourcing decision will need to be made in order to plan the supply source of theitems. In APO quota arrangements can be used to help support sourcing decisions.


SCM215 Lesson: Quota Arrangements in SCM

Figure 181: Quota Arrangements

Quota arrangements represent dimensionless proportions which are used as abasis for splitting a quantity. The quota arrangement defines which part of aproduct quantity split should be assigned a given method of procurement. Quotaarrangements are either inbound or outbound.

Figure 182: SAP SCM Quota Arrangements

For inbound quota arrangements, the source (of Demand) location of a shipment isdefined. For each product, a quota arrangement specifies which part of the quantityshould be sourced from which of the possible sources. Possible sources includeall locations, PPMs and procurement relationships listed as sources for a specific



target location by transportation lane. The following applications us inboundquotas : Network Deign, SNP, PP/DS, and CTM. These applications use theinbound quotas to split the demand quantities according to there supply options.

For outbound quota arrangements, the Target (of demand or Source ofSupply)location of a shipment is defined. For each product, a quota arrangementspecifies which part of the quantity should be transported to which of the possibletarget locations. Possible target locations are all those that are the destinations, ortargets, of transportation lanes starting at the defined source location. Outboundquota arrangements are only used in Deployment.

Modeling quota arrangements in SAP SCMQuota arrangements in SAP SCM can be created using two different methods.During the initial stages of a project if necessary quota arrangements will becreated manually. Users will have to specify what proportions go with whichrelated source of supply. Quotas can also be created during an SNP optimizationrun and will differently validity dates as a result of analyzing the �big picture�.

Figure 183: Header Level of the Quota Arrangement

The quota arrangement in SAP SCM is broken down into two levels, the headerand the items. The quota header identifies a product / location combination.Parameters belonging to the quota header include: demand assignment ,quantity splits, grouping of demands. When defining the relevance of the quotaarrangement, users can make it product specific, valid for all products, or onlya select few products.



Figure 184: Control Parameters in the Quota Arr. Header

Once the scope of the quota arrangement is determine, users can apply severalcontrol parameters. The Requirement split indicator, if selected, allows for eachdemand requirement (an order) to be procured from different sources. Enter theminimum quantity in the quantity requirements split field. The Requirementsgroup field, allows users to select individual, daily, weekly or monthly grouping ofdemands. These would be used to increase performance if a product experienceslarge quantities of orders on a daily basis. Theminimum split quantity, identifiesthe minimum requirement that each source of supply would get if splittingindividual orders.

The quota item defines the product procurement type, that is, the source of supplyfor a location. Products can be procured via: partner locations, procurementrelationships, and in-house production. In this maintenance activity you determinewhat percentage of a product should be procured from which source.

Figure 185: Control Parameters in the Quota Arr. Items



Quota items for outbound lanes are slightly different. They are the same inbounditems, except there are no procurement types. Outbound items are sent only topartner locations. In this activity you determine what percentage of an item shouldbe sent to which target location. The Quota arrangement field identifies whatproportion with which the requirements is split or weighted. This value has nodimension. The Heuristics field, defines which heuristic is to be used to plan thequota item. For example, you could use the heuristic SAP006 to plan the productusing a period lot-sizing procedure. This field is only valid if using quotas inPP/DS. The Quota base quantity, serves as a basis for adjusting quota itemswhen a new one is added. The base quantity allows you to control the quotaarrangement without having to change the quotation when, for example, a newsource is entered. As opposed to base quantities, the adjusted quantity must bemaintained manually, and is basically used to make individual adjustments. Thebase quantity can be maintained manually or it can be generated by the system.

Example: There are two quota arrangements at positions A and B with a 50%usage rate each. Both have already delivered 1000 pieces and therefore have aquoted quantity of 1000. If you want to insert a third position in order to have arate of 33,3% each, you must set the base quantity for the new position also for1000 pieces in order to create a balanced situation. Otherwise a requirements planwould be triggered for position C and would generate orders until the quotedquantity of C also reached a minimum of 1000 pieces.

The allocation quantity field indicates the quantity assigned to this quotaarrangement, as a result of planning.

Quota Arrangement and Source DeterminationAs mentioned before Quota arrangements will be used in source determinationduring the SNP Heuristics, Cable-to-Match (CTM) and the PP/DS planning runs.When the heuristic is run in Supply Network Planning, the system determines thesource automatically. You use the following parameters to control this supplysource determination: Quota arrangements for locations and production processmodels (PPMs), Procurement priorities for transportation lanes and PPMs.



Figure 186: Source Determination in SAP SCM

In PP/DS planning, if you have defined the quota arrangement heuristic for theproduct, the apportionment of requirements among the quota arrangement itemstakes place when the requirements are analyzed. All quota arrangement items areplanned separately according to the item heuristic you have defined in the quotaarrangement definition. By planning each quota arrangement item separately,the system is able to take planning parameters such as lot-sizing procedures,procurement lead times, rounding profiles, or the vendor calendars of the varioussources of supply into account. By using the heuristic, the system will be able todetermine the allocation quantity during the planning run.



Exercise 23: Modeling quotaarrangements in SAP SCM

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create several different types of quota arrangements to support the source

determination during the planning process in SAP SCM .

Business ExampleAssume your plant 3100 has a material that is sourced from two vendors. In orderto speed up the planning process, you wish SAP SCM to assist in the sourcedetermination. You need to model this arrangement so that there is a 70/30 splitbetween the two vendors. Additionally in order to maximize cost during planningyou are required to split demand between several of your manufacturing processes(PPMs). Create an arrangement so that 70 % of your ZAP-1## is run on the highspeed lines, 25 % run on the medium speed line, and 5 % runs on your slowestlines.

Task 1: Quota Arrangements for External ProcurementYour manufacturing plant 3100 purchases it�s caps (CAP-1##), for the ZAP-1##from vendors 0000100153 Plastic Cap Inc. and 0000100154 Caps Inc., In orderto speed up the planning process, you wish SAP SCM to assist in the sourcedetermination. Create a quota arrangement so that there is a 70/30 split betweenthe two vendors.

1. For model 000, create a quota arrangement at plant 3100 for yourCAP-1##, which will arrange for a 70/30 split respectively between vendors0000100153 and 0000100154.

Task 2: Quota Arrangements for Internal ManufacturingIn order to maximize cost during planning you are required to split demandbetween several of your manufacturing processes (PPMs). Create an arrangementso that 70 % of your ZAP-1## is run on the high speed lines, 25 % run on themedium speed line, and 5 % runs on your slowest lines.

1. For model 000, Create a quota arrangement at plant 3100 for your ZAP-1##,which will arrange so that 70 % of your ZAP-1## is run on the high speedlines Fill-1##, Fill-2##, and Fill-3##; 25 % run on the medium speed lineFill-4##, and 5 % runs on your slowest lines T-Filler.



Solution 23: Modeling quota arrangementsin SAP SCMTask 1: Quota Arrangements for External ProcurementYour manufacturing plant 3100 purchases it�s caps (CAP-1##), for the ZAP-1##from vendors 0000100153 Plastic Cap Inc. and 0000100154 Caps Inc., In orderto speed up the planning process, you wish SAP SCM to assist in the sourcedetermination. Create a quota arrangement so that there is a 70/30 split betweenthe two vendors.

1. For model 000, create a quota arrangement at plant 3100 for yourCAP-1##, which will arrange for a 70/30 split respectively between vendors0000100153 and 0000100154.

a) SAP SCM Menu Path: APO→ Master Data→ Quota Arrangements


Field Name DataModel 000

Location 3100

Version Independent Select

Inbound Quota Arrangement Select

c) Select Change

d) Under the Quota Ar. Headers section select Creation of new entry

e) In the window that appears on the right enter CAP-1##, enter an enddate of 12/31/9999, and select Allow requirement splitting.

f) Select Copy and Close.

g) In the Quota Ar. Header section select the row that has your CAP-1##,

and in the bottom section select Creation of new entry.

h) Select the radio button labeled Quota Arrangements for Ext. Proc.Relationship

i) Select the Copy all Existing Procurement Relationships indicator.

j) Select Copy and Close. This should copy all locations which havevalid transportation lanes to location 3100.




k) In the lower section labeled Quota Arrangement for item CAP-1##enter a quota arrangement of 70 for vendor 0000100153 and 30 forvendor 0000100154

l) Select Save

Task 2: Quota Arrangements for Internal ManufacturingIn order to maximize cost during planning you are required to split demandbetween several of your manufacturing processes (PPMs). Create an arrangementso that 70 % of your ZAP-1## is run on the high speed lines, 25 % run on themedium speed line, and 5 % runs on your slowest lines.

1. For model 000, Create a quota arrangement at plant 3100 for your ZAP-1##,which will arrange so that 70 % of your ZAP-1## is run on the high speedlines Fill-1##, Fill-2##, and Fill-3##; 25 % run on the medium speed lineFill-4##, and 5 % runs on your slowest lines T-Filler.

a) SAP SCM Menu Path: Master Data→ Quota Arrangements


Field Name DataModel 000

Location 3100

Version Independent Select

Inbound Quota Arrangement Select

c) Select Change

d) Under the Quota Ar. Headers section select Creation of new entry

e) In the window that appears on the right enter ZAP-1##, enter an enddate of 12/31/9999, and select Allow requirement splitting.

f) Select Copy and Close.

g) In the Quota Ar. Header section select the row that has your ZAP-1##,

and in the bottom section select Creation of new entry.

h) Select the radio button labeled Quota Arrangements for In-HouseProduction

i) Select the Copy all Existing In-House Production indicator.




j) Select Copy and Close. This should copy all PPM�s in location3100 that are valid to produce ZAP-1##.

k) In the lower section labeled Quota Arrangement for item ZAP-1##enter a quota arrangement of 70 the High speed PPM (A001), 25 for themedium speed PPM (A002), and 5 for the slow speed PPM (A003).

l) Select Save



Lesson Summary

You should now be able to:� Explain the purpose of a quota arrangement, and the different types of quotas.� Create quota arrangements in SAP SCM


Unit Summary SCM215

Unit SummaryYou should now be able to:� Explain the purpose of a quota arrangement, and the different types of quotas.� Create quota arrangements in SAP SCM


Unit 9Integrating Transactional Data

Unit OverviewHaving covered the integration of master data in other units, you must be awarethat due to its real-time nature, transactional data is handled differently. Thefollowing lesson will discuss how to setup, monitor, compare, and correct thefollow of transactional data from both SAP R/3 and SAP SCM.


� Discuss the general concept of transactional data integration� Identify the necessary configuration to send transactional data between an

SAP ECC system and an SAP SCM system (bi-directional)� Transfer transactional data from SAP SCM to SAP ECC

Unit ContentsLesson: Setting up Transactional Data Transfer.. . . . . . . . . . . . . . . . . . . . . . . . . . .528

Procedure: ATP Categories in SAP SCM ... . . . . . . . . . . . . . . . . . . . . . . . . . . . .530Procedure: SAP SCM Transactional Data Publication Settings.. . . . .535Exercise 24: Transferring planned orders .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .537


Unit 9: Integrating Transactional Data SCM215

Lesson: Setting up Transactional Data Transfer

Lesson OverviewIn addition to setting up the master data integration, the transactional dataintegration must also be set up using an integration model.


� Discuss the general concept of transactional data integration� Identify the necessary configuration to send transactional data between an


Business ExampleAssume your company is integrating SAP SCM with its existing SAP ECC systemso that it can undertake more intensive supply chain modeling and planning. Inorder to complete this integration and finalize your SCM solution, you must beable to transfer the planning results from SAP SCM, back to your SAP ECCsystem. Therefore you must, configure the SAP SCM system to pass the data backto the appropriate execution instance (SAP ECC ).

Overview of Transactional Data IntegrationThe selection of transaction data that the system transfers to SAP SCM isdetermined in an integration model that you define in the SAP ECC System.All transaction data is mapped to orders in SAP SCM, which are distinguishedby their ATP category.


SCM215 Lesson: Setting up Transactional Data Transfer

Figure 187: Transaction Data Objects of the CIF

In SAP ECC the different transactional data elements are referred to as MRPElements. Through the use of the core interface each MRP Element will bemapped to one or more ATP Categories. The CIF interprets the MRP element andpotentially the MRP element status to MAP to the appropriate ATP Category.

Figure 188: ATP Categories

In SAP ECC there is only one MRP Element for a production order. However,production orders have system statuses, for example created (CRTD) and released(REL). The CIF reviews the system status of the orders and maps them to thecorresponding ATP Category.



ATP Categories in SAP SCM

1. SAP SCM menu Path: SPRO→ Reference IMG→ Advanced Planningand Optimization→ Global Available to Promise→ General Settings→Maintain Category

2. Select ATP category AC and AD and select Details

Setting up Transactional Data Transfer from SAP SCM

Figure 189: SAP SCM Data Transfer

First, the initial data transfer of transaction data takes place through the CoreInterface. As a rule, the change transfer between SAP ECC and SAP SCM flowsautomatically for transaction data objects belonging to an active integrationmodel. New transaction data or changes to existing transaction data are transferredautomatically. The SAP SCM transaction data objects are not generally identicalto those in SAP ECC . The system transfers various SAP ECC transaction datainto SAP SCM as orders that differ by ATP category. Planned independentrequirements can only be transferred from SAP ECC to SAP SCM throughCIF. The transfer of planned independent requirements from SAP SCM to SAPECC must be triggered from demand planning in SAP SCM using a separatetransaction. You can specify in SAP SCM that planned orders and purchaserequisitions are only transferred from SAP SCM to SAP ECC if the conversionindicator has been set.



Figure 190: Publication Definitions

Prior to initiating any data transfer, several settings must be made in SAP SCMto allow data to be transmitted to the OLTP systems. The first configuration istoMaintain Distribution Definitions, which authorizes SAP SCM to transmitvarious liveCache order types to the respective OLTP system.

� 021 - External Procurement� 026 - Confirmation for Scheduling Agreement� 031 - In-house Production� 033 - Work Package Maintenance� 051 - Planned Independent Requirements� 053 - Sales Order� 300 - Production Campaign� 310- Planning File Entry (IS Automotive)� 330 - Shipment� 340 - Delivery� 350 - Confirmation (IS Automotive)� 351 - Confirmations of Deletions (IS Automotive)� 352 - Reporting Points (IS Automotive)� 360 - Reservations

In order to pass these objects back to SAP ECC you must allow each order type bylocation and logical system to transfer. An entry in this table is an authorization totransmit data. With transaction /SAPAPO/CP2, companies can mass maintain thedistribution definitions.



Figure 191: Object Specific Settings for Publication

In addition defining the distribution, companies can also configure transfersettings for the in-house order type transfers. The Re-transfer setting, for thein-house production object type, defines in which cases changes made to plannedor manufacturing orders in SAP ECC , which lead to rescheduling in SAP SCM ,should automatically be re-transferred to SAP ECC . The options are:

No Re-transferChanged planned orders will not be transferred to SAP ECC .

Always Re-transferObjects changed in SAP ECC are re-transferred to SAP ECC both after theinitial data transfer to SAP SCM and after online transfer. This setting has anegative effect on performance during the initial data supply. Therefore youshould check whether your business processes actually need this setting. Aretransfer after an initial data supply is not required if you only want to carryout optimization in SAP SCM after the initial data supply, for example.

Only Re-transfer after online transferObjects changed in SAP ECC are only retransferred to SAP ECC afteronline transfer to SAP SCM (that is, after manual changes to SAP ECCorders). There is no retransfer after the initial data supply. This setting canalso have a negative effect on performance. For example, this setting is notrecommended if your business process involves a daily optimization usingan optimization run in SAP SCM and SAP ECC is supposed to adopt theresults of this optimization run.



Figure 192: Transactional Data Publication Settings

In the SAP SCM transaction User Settings (transaction code /SAPAPO/C4) youcan set the format in which the new SAP SCM transaction data (planning results)is transferred to SAP ECC . The transfer usually takes place for PP/DS in real-time(default setting for PP/DS data). There is also the possibility of collecting thechanges, then transferring them to SAP ECC in a second step (transaction Processchange pointer /SAPAPO/C5).

Figure 193: SNP Transfer Settings



The default setting for SNP ensures that the changes are collected and transferredperiodically. For the real-time transfer of SNP planning results, you set the formfor transferring planning results to SAP ECC with the Customizing operation:Set transfer to OLTP system.

� No Transfer - All planning is self contained in SAP SCM and only executionor short term plans will be passed to SAP ECC

� Periodic Transfer - SNP is not run that frequently (once a week) so the planswill be transferred when system is idle

� Immediate Transfer - SNP is generating short term plans which will needto executed in a short time horizon

Due to the fact that SNP is a mid to long range planning tool, companies need theopportunity to queue up the changes and transfer to the OLTP system when thesystem load is smaller (evenings or weekends). However, deployment (DEPL) andtruck load builder (TLB) use the SNP data format, yet they are often performed inthe short term and by the logistics execution (LES) group. Therefore companiesneed to control the data transfer in accordance with their business process.

� No Transfer - All planning is self contained in SAP SCM and only stocktransfer orders (STO) will be passed to SAP ECC

� Periodic Transfer - Deployment is not run that frequently (once a week) sothe plans will be transferred when system is idle

� Immediate Transfer - Deployment is generating short term plans which willneed to executed in the near term horizon

� Purchase Requisition - Upon executing deployment SAP SCM will create�confirmed� stock transfer requests. TLB will be handling the generationof STOs

� Purchase Order - Your company is not using TLB to generate Stock TransferOrders, so you wish deployment to handle this step.

� VMI Settings - These settings are only relevant if you are performingdeployment from a plant or DC to a Customer location in SAP SCM. Youwill identify that SNP will be generating special orders inside of SAP SCMin anticipation of and SAP ECC sales order.

� No Transfer - TLB is not being used to generate Stock Transfer Orders� Periodic Transfer - TLB is running far into the future so the plans will be

transferred when system is idle� Immediate Transfer - TLB is generating short term plans which will need to

executed in the near term horizon by SAP ECC LES



SAP SCM Transactional Data Publication Settings

1. SAP SCM menu Path: SPRO→ Reference IMG→ Advanced Planning andOptimization→ Basis Settings→ Integration→ Publication→ MaintainDistribution Definition

2. Select publication type and perform a drop down to see the field options.

3. SAP SCM menu Path: SPRO→ Reference IMG→ Advanced Planning andOptimization→ Basis Settings→ Integration→ Publication→ Generateand Delete Distribution Definition

4. Review the settings so you can mass maintain the distribution definitions.

5. SAP SCM menu Path: SPRO→ Reference IMG→ Advanced Planning andOptimization→ Basis Settings→ Integration→ Publication→ MaintainObject Specific Settings

6. Perform a drop down on the �Re-transfer Settings �to review the field options

7. SAP SCM menu Path: SPRO→ Reference IMG→ Advanced Planning andOptimization→ Supply Chain Planning→ Supply Network Planning (SNP)→ Basic Settings→ Configure Transfer to OLTP Systems

8. Discuss field options. Make sure to point out that the purchase re/ordersettings are to determine if DEPL will create STRs or STOs.

9. Create a new session and SAP SCM menu Path: Advanced Planning andOptimization→ APO Administration→ Integration→ Settings→ UsersSettings

10. Discuss field options for recording

11. Create a new session and SAP SCM menu Path: Advanced Planning andOptimization→ APO Administration→ Integration→ Settings→ UsersSettings

Integration of Transaction DataTo transfer transaction data between SAP ECC and SAP SCM , you must activatean integration model. You activate an integration model with the ActivateIntegration Model transaction (transaction code CFM2) in the CIF.



Figure 194: Activate Integration Model for Transaction Data

It is useful to have several integration models active at a time with differenttransactional data objects in each one. Choose the Start function to trigger theinitial data transfer. This means that the transaction data you have selected istransferred into SAP SCM for the first time. This initial transfer is automaticallyfollowed by the real-time link between SAP ECC and SAP SCM. This meansthat once a selected storage location stock of a material changes due to a goodsmovement posting, the new stock is transferred to SAP SCM.

1. Stocks (special stock→ relevant customers/suppliers)2. Sales Orders3. Purchase orders and purchase requisitions4. Production/Process/Planned orders (mfg)5. Manual reservations and planned independent requirements6. Production campaign and Process/planned orders7. Shipments



Exercise 24: Transferring planned orders

Exercise ObjectivesAfter completing this exercise, you will be able to:� Explain the result of planned orders and production order transfers between

SAP SCM and the SAP ECC Enterprise

Business ExampleCurrently, the transaction data is maintained in a decentralized pattern in your SAPECC system. As a planning manager, you need to transfer this transaction data toa centralized SAP SCM System for detailed planning across the company.

Task 1: Current planning positionPrior to integrating your transactional data SAP SCM system to your SAP ECCsystem, identify your current planning situation.

1. View the current planning situation of the material T-F2## in plant 1000 inSAP ECC . Then call up the current stock/requirements list of the material.

2. Do planned or production orders exist for the material?

3. How high is the current plant stock level?

Task 2: SAP SCM and SAP ECC transactional dataintegrationAs a production planner you need to better understand how the two systemsintegrate in a real time fashion with transactional data, create data in your SAPSCM system and review the changes in SAP ECC .

1. Call up the product view.

Planning Version: 000

Product: T-F2##

Location: 1000

Confirm current messages using Enter and enter the product view. On thetab page Elements, the current planning elements are displayed. What isthe warehouse stock level?


3. From the product view enter change mode and create a planned order for 5pieces with an availability date of one week from today. Copy the suggestedpropagation range (SAPALL) with Save.




4. What is the number of the order you have just created?

5. Refresh the Product view. What is the number of the planned order now?

Task 3: Integration TestAs a production planner you need to be aware of the speed and accuracy of thedata transfer. Review the results in SAP ECC .

1. Now go to the current stock/requirements list of materials T-F2## at plant1000 is SAP ECC and refresh the list.

Is a planned order displayed?

2. What is the availability date of the planned order and how high is the orderquantity?

3. Finally, note the number of the planned order:

Make sure that the number in SAP SCM is the same as the order number thatyou noted in task 1, 2 and 3.

4. Return to the product view in SAP SCM,and then go to the change modeagain. Select your planned order and set the conversion indicator by clickingthe corresponding button. This indicator means that the planned order isconverted into a production order. Save the product view in SAP SCM, andthen update it.

What is the (new) number of the SAP SCM order?

5. Finally, view the current stock/requirements list again in the SAP ECCand refresh the list. Make sure that your planned order has been replacedwith a production version in the SAP ECC .



Solution 24: Transferring planned ordersTask 1: Current planning positionPrior to integrating your transactional data SAP SCM system to your SAP ECCsystem, identify your current planning situation.

1. View the current planning situation of the material T-F2## in plant 1000 inSAP ECC . Then call up the current stock/requirements list of the material.

a) In the SAP ECC , select Logistics → Production → MRP →Evaluations→ Stock/Requirements List (MD04).

2. Do planned or production orders exist for the material?

a) No, there are no planned or production orders available.


a) Current plant stock: 0 pieces

Hint: Call up the current stock/requirements list of thematerial, so that you can view the result at the same time as theplanning data in SAP SCM.

Task 2: SAP SCM and SAP ECC transactional dataintegrationAs a production planner you need to better understand how the two systemsintegrate in a real time fashion with transactional data, create data in your SAPSCM system and review the changes in SAP ECC .

1. Call up the product view.

Planning Version: 000

Product: T-F2##

Location: 1000

Confirm current messages using Enter and enter the product view. On thetab page Elements, the current planning elements are displayed. What isthe warehouse stock level?

a) In the SAP SCM System, select: Advanced Planning and Optimization→ Production Planning→ Interactive Production Planning→Product View


a) Stock level: 0 pieces




3. From the product view enter change mode and create a planned order for 5pieces with an availability date of one week from today. Copy the suggestedpropagation range (SAPALL) with Save.

a) Select Change

b) Now click the button Create order and create the following data forthe order:

Field ValuePlanning Version 000

Product: T-F2##

Location: 1000

Receipt/Reqmts Quantity 5 pieces

: Start Date: Delete entry

Avail/Reqmt Date week today

c) Select Save

4. What is the number of the order you have just created?

Answer: Order number: Varied, for example 61109

5. Refresh the Product view. What is the number of the planned order now?

a) Select Update

b) Current order number: Varied, for example 29423

Hint: The planned order is transferred from SAP SCM toSAP ECC and then provided with the SAP ECC planned ordernumber. This number is then transferred from the SAP SCMSystem for the corresponding planned order. According to thesystem load, this operation may take a while. It may thereforebe necessary to update the product view several times, until theplanned order is displayed with its new number.

Task 3: Integration TestAs a production planner you need to be aware of the speed and accuracy of thedata transfer. Review the results in SAP ECC .

1. Now go to the current stock/requirements list of materials T-F2## at plant1000 is SAP ECC and refresh the list.




Is a planned order displayed?

a) In the SAP ECC , select Logistics → Production → MRP →Evaluations→ Stock/Requirements List (MD04).

b) Planned order displayed: Yes, a firm planned order is displayed.

2. What is the availability date of the planned order and how high is the orderquantity?

a) Availability date and order quantity: The planned order with aquantity of 5 pieces is available a week from today. (If this day isnot a workday, then the next workday).

3. Finally, note the number of the planned order:

Make sure that the number in SAP SCM is the same as the order number thatyou noted in task 1, 2 and 3.

a) Planned order number: Varied, for example 29423 (as above)

4. Return to the product view in SAP SCM,and then go to the change modeagain. Select your planned order and set the conversion indicator by clickingthe corresponding button. This indicator means that the planned order isconverted into a production order. Save the product view in SAP SCM, andthen update it.

What is the (new) number of the SAP SCM order?

a) New number of SAP SCM order: Varied, for example 60002440

Hint: The planned order with a conversion indicator istransferred from SAP SCM into SAP ECC as a productionorder, and provided with the SAP ECC production ordernumber. This number is then transferred from the SAP SCMSystem for the corresponding planned order. According to thesystem load, this operation may take a while. It may thereforebe necessary to update the product view several times, until theorder is displayed with its new number.

5. Finally, view the current stock/requirements list again in the SAP ECCand refresh the list. Make sure that your planned order has been replacedwith a production version in the SAP ECC .

a)



Lesson Summary

You should now be able to:� Discuss the general concept of transactional data integration� Identify the necessary configuration to send transactional data between an



SCM215 Unit Summary

Unit SummaryYou should now be able to:� Discuss the general concept of transactional data integration� Identify the necessary configuration to send transactional data between an



Unit Summary SCM215


Unit 10Sub Contracting in SAP SCM

Unit OverviewThis unit introduces the use of subcontracting for external procurement purposesin the SAP SCM system. There are two different methods of subcontractingprocesses in the SAP SCM system. Each of these methods will be discussed.


� Explain how a subcontracting purchase agreement is different from astandard purchase agreement.

� Setup the required subcontracting master data in the SAP ECC system.� Transfer the subcontracting data to the SAP SCM system as part of the

supply chain model and explain the relationships that are created.

Unit ContentsLesson: Sub-Contracting .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .546

Exercise 25: Subcontracting (Optional) .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .553


Unit 10: Sub Contracting in SAP SCM SCM215

Lesson: Sub-Contracting

Lesson OverviewThis lesson introduces the use of subcontracting for external procurement purposesin the SAP SCM system. There are two different methods of subcontractingprocesses in the SAP SCM system. Each of these methods as well as the masterdata requirements and integration will be discussed.


� Explain how a subcontracting purchase agreement is different from astandard purchase agreement.

� Setup the required subcontracting master data in the SAP ECC system.� Transfer the subcontracting data to the SAP SCM system as part of the


Business ExampleMarketing has decided to sell a new promotional item, ZAP-9##, that will includea 100 oz. bottle of detergent and a dosing cup. You have subcontracted thispromotional package with VEN-##. Plant 3100 will supply VEN-## with the100 oz. detergent (ZAP-1##).

Subcontracting in the SAP ECC SystemSubcontracting is a form of procurement in which a manufacturer orders a productfrom a subcontractor (vendor) and provides the vendor with certain componentsneeded to make the ordered product. A purchase order is generated specifyingthe product you are purchasing and the components you are providing. Thecomponents are then delivered to the subcontractor. When the finished goods arereceived from the subcontractor a goods receipt is entered and the quantities ofcomponents consumed by the vendor are also posted. The process is completedwhen an invoice is entered with reference to the purchase order.


SCM215 Lesson: Sub-Contracting

Figure 195: Overview of Subcontracting in the SAP ECC system

Subcontracting in the SAP SCM SystemAs of SAP SCM 4.0 subcontracting is realized in PP/DS as well as SNP. It iscontrolled via the Subcontracting field in the relevant transportation lane (fromthe subcontractor to the plant) for the product to be manufactured in one oftwo ways: Ł Planning of the subcontracting components at the vendor location(subcontracting with source location) Ł Planning of subcontracting components inplant (subcontracting without source location) The key difference between thesetwo processes is in the planning of the subcontracting components. In the case ofplanning at the vendor location, the requirements and stocks of the subcontractingcomponents are MRP-relevant at the vendor location and can be plannedindividually for each subcontractor. In the case of planning in the plant, on theother hand, all requirements and stocks are MRP-relevant in your own plant. Inthe SAP SCM system, it is not possible to plan the shipment of subcontractingcomponents to the vendor at the time the subcontracting components are plannedat the plant location. In addition, this scenario is only suitable in cases in whichyou are collaborating with just one subcontractor and you allow only procurementvia subcontracting for a product. On the other hand, it necessitates less subsequentmaintenance in the SAP SCM system.

Hint: As of SAP SCM 4.0, you can plan subcontracting with third-partyprovision of materials or components in Supply Network Planning (SNP)and Production Planning and Detailed Scheduling (PP/DS).



In both processes, the requisitions generated are transferred to the SAP ECCsystem and converted into a purchase order in that system. The SAP ECCpurchase requisition item is of category L (subcontracting) and contains thesubcontracting components from the BOM.

Subcontracting Without Planning at the VendorLocationIn the planning run, requirements of the SC end product are planned at the plantlocation. The system generates a purchase requisition at the plant location,and a planned order linked to the requisition. The planned order contains therequirements of the subcontracting components. These are then planned at theplant location. However, the transportation of the components cannot be planned inthe SAP SCM system. In contrast to planning with a vendor location, this scenarionecessitates less system maintenance but is restricted to the case in which you havejust one subcontractor for the SC product and do not allow in-house production.

PrerequisitesThe system plans at the plant location if no vendor-specific product master recordexists for the SC product.

The following master data must be created in the SAP SCM system:

1. Plant-specific product master records for the subcontracted product and thesubcontracting components

2. External procurement relationship for the subcontracted product3. Transportation lanes for the subcontracted product4. Resources for the plant5. Production process model (PPM) at the plant location

Note on 1 - 3: All master data can be transferred from the SAP ECC system.

Note on 4: If the handling resources for the plant do not yet exist, they must becreated.

Note on 3 - 5: The plant-specific PPM can be transferred from the SAP ECCsystem. For this to happen, you only need to create the production version in thematerial master record of the SC product. In doing so, please note that eitherthe BOM in the SAP ECC system contains only the components that are alsoprovided to the subcontractor, or you do not transfer additional components tothe SAP SCM system.

Steps in ProcessIn the planning run, the SAP SCM system determines a subcontractor as thesource for a product requirement.



Figure 196: Subcontracting Without Source Location

1. A purchase requisition with source location, subcontractor, and destinationlocation plant is created in the planning plant. In addition, the systemdetermines a valid PPM in the plant and uses it to generate an in-houseproduction order for the requested product and the dependent requirementsfor the subcontracting components at the plant location.

An SC requisition is generated in the SAP ECC system. The number of theSAP ECC requisition is returned to the purchase requisition order and thein-house production order in the SAP SCM system.

2. The subcontracting components for the planned order in the plant locationare then planned in the SAP SCM system and, if necessary, producedinternally (in-house production order) or procured externally (purchaserequisition). The subcontracting components are MRP-relevant in your ownplant and not in the source location (subcontractor).

Hint: In the case of SC requisitions, you cannot generate the SAPECC purchase order directly from the SAP SCM system with theaid of the conversion indicator. The conversion of the requisitioninto a PO and the goods movement postings take place in the SAPECC system.

Subcontracting with Planning at the Vendor LocationIn the planning run, requirements of the subcontracted end product are planned atthe plant location. The system covers requirements through purchase requisitionsfor external procurement from the subcontractor location, so that a corresponding



requisition release is created at the subcontractor location. This requisition releaseis covered by a planned order containing the requirements of the subcontractingcomponents at the subcontractor location. The subcontracting components aresubsequently planned at the vendor location and a plant-to-vendor stock transportorder generated. This enables the transportation of the components to be plannedin the SAP SCM system.

Caution: You use this scenario if you collaborate with severalsubcontractors or if you allow both in-house production and externalprocurement via subcontracting for a product. Only in this scenario arethe stocks and requirements MRP-relevant independently of each other inthe vendor locations or in the plant location, and thus capable of beingplanned individually.

By creating the subcontracted product at the vendor location, you stipulate thatplanning takes place at that location.

PrerequisitesThe following master data must be created in the SAP SCM system for theplanning of the subcontracting process to be carried out at the vendor location:

1. Vendor-location-specific product master records for the subcontractedproduct and the subcontracting components

2. External procurement relationship for the subcontracted product3. Transportation lanes for the subcontracted product and the subcontracting

components4. Resources for the vendor location and the plant5. Production process model (PPM) at the vendor location

Note on 1: When the material master records are transferred from the SAP ECCsystem, only the plant-specific data of the product master record is created (that is,you must subsequently create the product master records for the vendor locationand assign them to the active model manually).

Hint: To avoid creating the product masters manually at the vendorlocation a user exit may be utilized. See Note: 483358. If this note isutilized the product masters will automatically be created through theCIF at the vendor location.

Note on 2- 3: You need a subcontracting info record (or SC contract) in theSAP ECC system. When transferring the SC info record, the system generatesthe external procurement relationship and automatically sets the subcontracting



indicator in the transportation lane generated. You merely have to create thetransportation lane (from the plant location to the vendor location) for thesubcontracting components.

Note on 4: For the orders to be scheduled, you must create the relevant handlingresources for the goods receipt or goods issue and at the vendor. The PPMcomprises the SAP ECC BOM and the SAP ECC routing and requires at leastone operation and one resource. For this reason, you must additionally create atleast one resource for the vendor for the production process model (PPM) of thevendor location. Note on 5: A PPM with at least one resource and one operationmust be created at the vendor location. The PPM contains all the subcontractingcomponents of the subcontracted product. The PPM must also be active andassigned to the active model.

Hint: As of PI2001.2, you can transfer the PPM of the vendor locationfrom the SAP ECC system by creating a production version for thematerial and assigning it to the SC info record. In the integration model,you can transfer the object subcontracting PPM to the SAP SCM system.

Steps in ProcessIn the planning run, the SAP SCM system determines a subcontractor as thesource for a product requirement.



Figure 197: Subcontracting with Source Location

1. A purchase requisition with a subcontractor as the source location and a plantas the destination location is generated in the planning plant. A purchaserequisition release is generated in the source location. In addition, the systemdetermines a valid PPM at the source location and uses it to generate anin-house production order for the requested product and the dependentrequirements for the subcontracting components at the subcontractorlocation. An SC requisition is generated in the SAP ECC system. Thenumber of the SAP ECC requisition is returned to the purchase requisitionorder and the in-house production order in the SAP SCM system.

2. The subcontracting components for the in-house production order at thevendor location are then planned in the SAP SCM system. If a shortage ofstock is detected at the subcontractor�s site, stock transfer reservations arecreated for the subcontracting components.

3. Finally, the subcontracting products are planned in the plant and, if necessary,either produced internally (in-house production order) or procured externally(purchase requisition).



Exercise 25: Subcontracting (Optional)

Exercise ObjectivesAfter completing this exercise, you will be able to:� Transfer the model to the SAP SCM system and explain the relationships

that are created.� Create the needed master data in SAP SCM to do subcontracting planning.

Business ExampleMarketing has decided to sell a new promotional item, ZAP-9##, that will includea 100 oz. bottle of detergent and a dosing cup. You have subcontracted thispromotional package with VEN-##. Plant 3100 will supply VEN-## with the100 oz. detergent (ZAP-1##).

Task 1: Sub-Contracting RoutingDisplay a simple routing at the Distribution Center.

1. Display a simple routing at the Distribution Center. This routing should usethe workcenter SC-## created in the previous step.

Task 2: Sub-Contracting Bill of MaterialDisplay BOM at the Distribution Center.

1. Display the Bill of Material at Distribution Center 90##. This will representthe components that the subcontractor will require to complete the process.

Task 3: Create Production Version to SupportSub-ContractingCreate a production version SC-## for ZAP-9## at the Distribution Center.

1. Create a production version for ZAP-9## at the Distribution Center. Thiswill be required for the CIF to create the necessary PPM(s).

Task 4: Create Sub-Contracting Info RecordCreate a subcontracting info record for the appropriate materials.

1. Create a subcontracting info record for the material ZAP-9## and vendorVEN-## using the following data.




Field Name: Data:Vendor VEN-##

Material ZAP-9##

Purchasing Org 3000

Plant 90##

Info Category Select Subcontracting

Plnd Dely Time 10

Purch. Group 0##

Standard qty. 10000

Version SC##

Net price $1 per 100 PC

Task 5: Transfer Sub-Contracting Master Data to SAPSCMCreate integration model(s) to transfer the master data you just created to SAPSCM.

1. In SAP ECC create and activate an integration model to transfer the inforecord and work center data you just created to SAP SCM. Be sure to save avariant.


Task 6: Confirm Data TransferIf you received a message that the transfer was complete, we will now reviewthe data that should exist in SAP SCM

1. Verify that product ZAP-9## has been created in Plant 90## and at thevendor location VEN-##.

2. Now check if the subcontracting PPM was creted at the vendor location.Locate the PPM for product ZAP-9## at location VEN-##.



Solution 25: Subcontracting (Optional)Task 1: Sub-Contracting RoutingDisplay a simple routing at the Distribution Center.

1. Display a simple routing at the Distribution Center. This routing should usethe workcenter SC-## created in the previous step.




Plant 90##

ENTER

c) In operation 0010 verify work center SC-##, and a description ofDummy Operation.

Note: A valid work center is mandatory for the PPM creation.Work center SC-## is a �dummy� work center that was strictlyfor the purpose of modelling the subcontract process.

d) Back out to the main menu.




Task 2: Sub-Contracting Bill of MaterialDisplay BOM at the Distribution Center.

1. Display the Bill of Material at Distribution Center 90##. This will representthe components that the subcontractor will require to complete the process.

a) SAP ECC Menu Path Logistics→ Production→ Master Data→ Billsof material→ Bill of material→ Material BOM→ Display



Plant 90##

BOM Usage 1 - Production

Select Enter

c) Verify the following data

Item ICt Component Description Quan-tity

Un

0010 L -Stock

CUP-1## 1 pc

0020 L -Stock

ZAP-1## 1 pc

d) Back out to the menu.

Task 3: Create Production Version to SupportSub-ContractingCreate a production version SC-## for ZAP-9## at the Distribution Center.

1. Create a production version for ZAP-9## at the Distribution Center. Thiswill be required for the CIF to create the necessary PPM(s).

a) Menu path:Logistics→ Production→ Master Data→ MaterialMaster→ Material→ Change→ Immediately

b) Enter material ZAP-9##

c) Choose the MRP4 view:

Select Organizational levels to continue




d) Enter plant 90##


e) On the MRP4 view, select the ProdVersions button and enter thefollowing data:

Field Name: Data:Ver SC##

text Subcontract Version

From lot size 1

To lot size 99,999,999

valid from <today>

valid to <end of next year>

f) Select the line for the new version and the Details button.

Enter the following data:

Detailed PlanningTask List Type Section,Detailed Planning

Routing

Group <group created in previousexercise> Use F4 help andsearch by material number ifrequired.

Group counter 1

Alternative BOM 1

Group 1

g) Select Continue (two times) and Save your new material master.

Task 4: Create Sub-Contracting Info RecordCreate a subcontracting info record for the appropriate materials.

1. Create a subcontracting info record for the material ZAP-9## and vendorVEN-## using the following data.




Field Name: Data:Vendor VEN-##

Material ZAP-9##

Purchasing Org 3000

Plant 90##

Info Category Select Subcontracting

Plnd Dely Time 10

Purch. Group 0##

Standard qty. 10000

Version SC##

Net price $1 per 100 PC

a) Logistics→ Materials Management→ Purchasing→ Master Data→Info Record→ Create

b) Enter the above data vendor through plant on the initial screen, selectsubcontracting as the Info Category, and click enter.

c) Since we only want to enter the minimum data to create the info record,

enter nothing on the General Data screen but click .

d) Enter the remaining data from above and save your info record.

Task 5: Transfer Sub-Contracting Master Data to SAPSCMCreate integration model(s) to transfer the master data you just created to SAPSCM.

1. In SAP ECC create and activate an integration model to transfer the inforecord and work center data you just created to SAP SCM. Be sure to save avariant.


b) In the section marked �Material Dependent Objects�Select the checkbox Materials.

c) In the section marked �General Selection Options:for Materials�Enterthe following:




Field Name Data:Plant 90##

MRP Controller 2##

MRP Type X0

d) In the section marked �Material Dependent Objects�Select the check

box Pur. Info Record, and select Special Restrictions.

e) Enter the following data:

Field Name Data:Material-Dep. Source of SupplySelection

Selected

Material ZAP-9##

Plant 90##

Subcontracting Selected

f) In the section marked �Material Dependent Objects�Select the check

box PPM, and select Special Restrictions.

g) In the section marked �Production Process Models�, select SubcontractPPM and delete the date.

Field Name Data:Subcontract PPM Selected

Valid to blank

h) In the section marked �Material Independent Objects�Select the check

boxWork Centers, and select Special Restrictions.

i) In the section marked �Resources�Enter the following:

Field Name Data:Work Center SC-##

Plant 90##

j) Select Execute




k) The next screen should show the list of records that were selected.Select Save to Generate the integration model.

l) Select Back .

m) When you exit the create screen a dialog box will appear asking if youwant to save your selection criteria as a variant. Answer Yes if youhave not already saved as a variant.

n) Name your variant Group-## with description Subcontracting Dataand save.




b) The name, logical system, and application of the model should defaultbut if not make sure you enter the correct information from the previousexercise and then Execute.

c) Choose your model by double clicking on the latest date and click theStart Button to start the initial transfer.

Task 6: Confirm Data TransferIf you received a message that the transfer was complete, we will now reviewthe data that should exist in SAP SCM

1. Verify that product ZAP-9## has been created in Plant 90## and at thevendor location VEN-##.

a) Menu path:SAP SCM Menu: Advanced Planning and Optimization→Master Data→ Product

Enter the product and location(s) and display.

As long as a product is displayed, the material was created in SAPSCM. If an error is received, transfer did not take place properly andneeds to be troubleshooted.

Note: The products were created automatically in SAP SCM atthe vendor location due to the user exit: Note 483358




2. Now check if the subcontracting PPM was creted at the vendor location.Locate the PPM for product ZAP-9## at location VEN-##.

a) From the Choose plan screen, select Choose plan through PPM, Enteryour product ZAP-9##, location VEN-##, and use of Plan P (PPMProduction planning detailed scheduling).

b) Select Change.

Note: This PPM was created automatically in SAP SCM at thevendor location due to the user exit: Note 483358

c) Be sure to view the operation, activities, and components before exiting.



Lesson Summary

You should now be able to:� Explain how a subcontracting purchase agreement is different from a

standard purchase agreement.� Setup the required subcontracting master data in the SAP ECC system.� Transfer the subcontracting data to the SAP SCM system as part of the



SCM215 Unit Summary

Unit SummaryYou should now be able to:� Explain how a subcontracting purchase agreement is different from a

standard purchase agreement.� Setup the required subcontracting master data in the SAP ECC system.� Transfer the subcontracting data to the SAP SCM system as part of the



Course Summary SCM215

Course SummaryYou should now be able to:

� Transfer master data from SAP R/3 to SAP SCM, andcreate SAP SCMspecific modeling data to complete the Supply Chain.

� Identify where to add master data to SAP SCM to have a fully functionalSupply Chain Planning system.

� Develop a complete supply chain model in SAP SCM based on SAP R/3master data.

� Describe the modeling options that are available in SAP SCM and theireffects on the SAP R/3 system.


FeedbackSAP AG has made every effort in the preparation of this course to ensure theaccuracy and completeness of the materials. If you have any corrections orsuggestions for improvement, please record them in the appropriate place in thecourse evaluation.


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