setup lifecycle planning

8/11/2019 Setup Lifecycle Planning

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Business Process ProcedureOn

Lifecycle Planning


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Setup Lifecycle Planning - like Profile setup / Assignment

Life Cycle of any product consists of different phases i.e ., Launch, Growth, Maturity, Decline andDeath . In SAP SCM APO Demand Planning, we can use phase in and phase out profiles torepresent the launch, growth, decline and death phases.

With the use of like profiles, demand forecast can be created for a new product using historicaldata of a product or products whose demand behavior is similar to the new product.

Like profiles can also be used for products with short lifecycles or for products with insufficienthistorical data.

Lifecycle Planning in SAP APO consists of two functions,1. Like modeling2. Phase In/Out modeling.

Each of these functions is available for forecasting both at detail level and aggregate level.

Like ModelingLike Modeling is done by creating a Like Profile for forecasting new pr oduct by utilizing thehistorical data of old products with similar sales behavior. It is ideal to use like profiles for newproducts and products with short life cycle.

Like cycle planning can be set for specific characteristics. We need to specify the characteristicsto the planning area. The following restriction applies

1. We can work with maximum of 6 characteristics2. We cannot use Compound Characteristics3. We cannot use Characteristics Based Forecasting (CBF) Characteristics.

Creating Like P rofile

Transaction code /SAPAPO/MSDP_FCST1

Path Advanced Planning and Optimization -> Demand Planning ->Environment -> Lifecycle Planning.

Step 1- When you execute the Transaction /SAPAPO/MSDP_FCST1. You will reach to theLifecycle Planning Screen.


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Step 3 - Define Like Profiles.

After Clicking on Like Profile you will reach to the Define like Profile Screen


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]]1. Here you need to select the characterist ic on whic h you want to create a like profile. But in theBasic settings we had maintained only Product (ZCDEPRODU) so you can get here Productcharacteristic only.

2. Define a Like Profile. Under like profile field. Eg ZDELP001 and give the description.

3. Under the like profile Definition Ref.Values Give the reference product, (Referenceproduct you are using this product profile as reference to the new product.)

4. Cilck on Save button, to save the profile. All saved profile are displayed in the next table.

5. Click on Adopt Values. After clicking this button you will reach to the main screen. With this youhave completed the creation of like profile.Creating Phase in and Phase outWe define phase in and phase out profile to model the life cycle of Old and New Products.

If the phase out profile period is with in the history horizon specified in the master forecast profile.the system adjust the corrected history. If the phase in profile period is with in the future horizonspecified in the master forecast profile, the system directly adjusts the Forecast Key Figure. Wemust set the Lifecycle planning Active indicator in the Master Forecast profile

Phase-In profileUsing phase-in profile in Demand Planning, we can simulate the launch phase of any product lifecycle. A phase-in profile changes the demand history or demand forecast of a product by given

percentages during a specified period or periods.

In Demand Planning, we can also use like profile to generate forecast for a new product based onexisting product. In this kind of scenarios we can adjust the historical data of the like productupwards to correct the downward trend in demand during the like product s discontinuationphase.

Step 1Execute the transaction /SAPAPO/MSDP_FCST1- you will reach to the following screen.


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After clicking on the Phase In/out button, you will reach to the Time Series Maintenance screen.

Step 2 Create Time Series Maintenance


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1. Create the Time Series ID (Phase In) ZDEPH_IN_001 and Description.2. Give the Phase in Start date and End date and the Period IndicotorIf we are launching a new product from 1 st Aug, 2011 and that will end by 31 st Dec, 2011 and theperiod Indicator is M

3.Select the flag Before Start date, apply constant factor 0 (its not showing the abovescreen shot.) you use a constant factor before the start date with a value of 0 in a phase-in profile.You can also enter other values.

And After end date, apply constant factor 100%

4. For newly launching products it takes a ramp up time to reach the targeted sales. So we givean increasing % values to attain the targeted sales by the phase in end date.Here, Phase in Start date is 1 st Aug, 2011 and End Date is 31 st Dec, 2011. so there are 5 monthsof time to reach the targeted (100%) sales.

5. Click on Save Time Series 6. Click on Adopt Values.

After clicking the Adopt button you will reach to the main screen. With this you have completedthe creating Phase in Profile.


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Phase-Out profileUsing phase-out profile in Demand Planning. We can simulate the discontinuation phase of aproduct life cycle. In phase-out profile, user can enter the Percentages to mimic the downwardsales curve of the product based on their judgment.

A phase-out profile changes the demand history or demand forecast of a product by givenpercentages during a specified periods. If the time ranges lies within the historical time horizon,the demand history is adjusted. If the time range lies within the future horizon, the demandforecast is adjusted.

Step 1Execute the transaction /SAPAPO/MSDP_FCST1- you will reach to the following screen.

After clicking on the Phase In/out button, you will reach to the Time Series Maintenance screen


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Lifecycle AssignmentsLike profile, phase-in and phase-out profiles created earlier, can be assigned to the CVCcombination at aggregate level. So as statistical forecast run will consider the setting defined inthis table.

Dates maintained in this table will override the validity date of Phase in & Phase out profiles.Once a product has become stable and accumulated its own history, manually demand plannerscan delete the entry from this assignment table.

Step 1 Execute the transaction /SAPAPO/MSDP_FCST1- you will reach to the following screen

Here, under the Setting for Lifecycle Planning You need to select the Assignment Radio button. Select the Planning Area ZDE_PA and click on Execute. To reach Assignment table.

After clicking on the Execute button you will reach to the following screen

Here, Under the Profile assignment for Life Cycle.I have taken a new product i.e CPK_2, for this product I have assigned a like profile ZDELP001 (which has a reference product i.e 500181 )

And for this new product CPK_2 I have assigned a Phase In profile. ZDEPH_IN_001 and that isstart from 1 st Aug, 2011 and End by 31 st Dec, 2011.

When you execute the Statistical forecast. The forecast profile incorporates the lifecycle profileand run the life cycle profile and phase-in profile for the product CPK_2


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Here , I have taken an Old product 500181 for Phase out profile ZDEPH_OUT_001, and thephase out is start from 1 st Jan, 2012 and end by 31 st May, 2012.

When you executes the Statistical forecast. The forecast profile incorporates the phase-out profile

(ZDEPH_OUT_001 ) for the product 500181.

setup lifecycle planning

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