copyright © 2003 americas’ sap users’ group apo 3.0 implementation at wyeth thomas bailey,...
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Copyright © 2003 Americas’ SAP Users’ Group
APO 3.0 Implementation at WyethThomas Bailey, Wyeth Pharmaceuticals
Rajesh Sundar, Infinite Strategies Inc.
Session: 4811
Wyeth Overview
Why APO
Architecture
DP Design
SNP Design
Shortcoming’s and Workarounds
CIF and R/3 Integration
Summary
Agenda
Wyeth Overview
What began as a small drugstore with John Wyeth and his Brother at 1410 Walnut Street, Philadelphia, Pennsylvania is now one of the leading pharmaceutical and biotechnology companies in the world.
• 2002 Sales were $15 Billion
• Total Assets are $26 Billion
• 53,000 Employees, World Wide
• Consists of 4 Divisions
– Consumer Health
– Fort Dodge Animal Health
– Pharmaceuticals
– Research
APO at Wyeth Pharmaceuticals
• 6 sites using installations of APO 3.0• 2 sites to be implemented this year for APO 3.0
Demand PlanningSupply Network Planning
New global initiative underway to transform supply chain:
• Production Planning/Detailed Scheduling• Supply Network Planning• Shared Resources between Business Units• Changes to Organization and Business Processes
Agenda
Wyeth Overview
Why APO
Architecture
DP Design
SNP Design
Shortcoming’s and Workarounds
CIF and R/3 Integration
Summary
Why APO
Disparate solutions at various sites due to acquisitions and accelerated growth.
Complexity of various production processes
SAP R/3 chosen as the ERP solution
Provide integrated view of entire Supply Chain
Wyeth Overview
Why APO
Architecture
DP Design
SNP Design
Shortcoming’s and Workarounds
CIF and R/3 Integration
Summary
Agenda
Deploym ent Plant to DC DC to DC (Stk
Transfer Req)
Reports, SAP APO Alerts
ManufacturingR3 (Execution System)
APO (Planning System )R3 (Execution
System )
Demand Planning Supply Network Planning
High-level Business Process Overview
MM-PPM odule
System
In tegration w ith R3
DC'sDistribution Systems
Distribution
Run Model inPlanning Horizon
CheckCapacity
Capacity LevelingDecision Change Capacity Shift Capacity M ove to a lternate
Resource
Run So lver G enerate
recom m endedproduction
Add Dem and toForecast
Planned O rders
Stk T ransfer Req
Filename: High-Level Business Process.vsd
Business Process Overview
Wyeth Overview
Why APO
Architecture
DP Design
SNP Design
Shortcoming’s and Workarounds
CIF and R/3 Integration
Summary
Agenda
Demand Planning Design
Forecast from Legacy Systems for OTC (Over The Counter) line of products
Demand Planning in SAP APO for RX (Prescription drugs)
BW as a Staging Area for Forecast and shipment Data
Fulfill Reporting requirements such as schedule attainment etc
DP Demand Data Flow
MaterialDemand
Material & Plant Demand
SAPAPO
SupplyNetworkPlanning
RXB/O, C/O
SAP/LPM
OTCB/O, C/O
JDE
OTCForecast
Lotus
..
AffiliateForecast(s)
Prism, etc.
SAPAPO
DemandPlanning
Demand Adjustments
BW Data LoadReview
(client driven)
SAPBW
(demand datastaging)
SAP/APO/DPRX
Forecast
Demand Staging in BW
Forecast from Legacy Systems is collected and staged in BW Info cube’s
Back Orders and Carry Over’s from prior months is also collected in BW from Legacy Systems (such as JDE )
Error Handling and Data Cleansing happens in BW prior to replicating this data in APO.
Data from BW is replicated in APO into Info Cubes and loaded into DP Planning Book.
Forecasting
Consolidating forecasts from legacy forecasting systems (Futurion, Lotus etc.) along with other Market Intelligence to specify what ‘likely’ will be required by our customers.
Demand and Supply Planning done within one integrated planning system.
The Adjusted Final Forecast is released to SNP at the Ship from level.
Wyeth Overview
Why APO
Architecture
DP Design
SNP Design
Shortcoming’s and Workarounds
CIF and R/3 Integration
Summary
Agenda
SNP Design
APO Planning only carried out at the Finished Product and Bulk (Semi-Finished) Product Levels
All lower level components planned in SAP R/3 using standard MRP
Planning Area and Planning Book designed for 52 weeks and 12 months Time Horizon
Heuristics (Rules Based Planning) is used as the Supply Planning Algorithm in SNP
Alerts used exclusively to Manage exceptions in Supply Chain
Capacity Leveling in SNP is used for Rough Cut Capacity Planning
Heuristics Planning Run
Factors Considered in the heuristic run:
Transportation Lanes-Valid movements in the supply chain that link plant to DC and DC to DC.
Lead Times-Time to manufacture product
Quota Arrangements-% of Demand allocation of requirements to sourcing locations
Lot Sizing – Lot-for-lot, fixed, target range of coverage, rounding profiles, rounding values
Production Process Models
Production Horizon
Target Days Supply
Safety Stock
Supply Planning Process
Production Horizon
Action in R/3 Action in APO
3 4 5 6 7 8 9 121110 14 1513 161 2
PLANT RESPONSIBILITY
SUPPLY PLANNINGRESPONSIBILITY
Process Orders Planned Orders
Weekly BucketWeekly Bucket
Alert Monitor - Overview
The Alert Monitor allows Supply Planners to review a predefined set of Alert Messages in order to react more efficiently; when the related exceptions occur, alert messages will appear in the Alert Monitor.
• DP Alert• DP Sales Pace – Shipments exceed forecast by
over 74.5%• SNP Alerts
• Resource Overload – Resource is loaded more than 100%
• Backlog – Projected inventory is less than 0• Target stock level shortfall – Projected inventory
is less than the Target Stock Level (for products with safety stock)
Wyeth Overview
Why APO
Architecture
DP Design
SNP Design
Shortcoming’s and Workarounds
CIF and R/3 Integration
Summary
Agenda
Shortcoming and Work a round's
SNP PPM not integrated to R/3
CIF Options
Custom Interface program
Process Order Interface Issues
Operation/Phase Links
Com Errors
Demand reduction in APO
With IDOC processing in R/3
SNP PPM Interface
Two types of PPM in APO
SAP standard CIF interface involves:
CIF across PP/DS PPM
Convert PP/DS to SNP PPM
Con’s:
Cannot update SNP PPM’s without deleting them in APO
Cannot load rough-cut single Level PPM’s
PPM Interface Work around
Designed a custom PPM Upload Program in R/3
Uses BAPI’s and RFC connection to load PPM’s into APO.
Consideration for rough cut and other Plant specific customizations
Process Order Interface
Errors on initial CIF activation of Process Orders from R/3 to APO caused due to:
Due to existing Old data in R/3
Data cleansing in R/3 such as setting TECO (Technically Complete) status of Old Process Orders.
Maintenance of links between Operations in a Recipe in R/3
Using un-supported PI (R/3 Plug-in ) in R/3.
Process Order Work around
To enable the Activation of the Process orders in APO the following workaround was utilized
Using Process Order CIF User-exit to enhance and provide logic for dropping all operations and BOM related information coming across from R/3
Just send the Process Order Number, Quantity and Start and finish Dates across to APO
Demand Reduction in APO
Demand reduction versus Standard Consumption For demand within SNP: “Demand
Reduction” occurs as shipments are made from the DC to the Customer. “Demand Consumption”, which occurs as sales-orders and/or deliveries created (but not yet shipped) is not currently used at Wyeth.
Shipments are posted into R/3 via IDOC’s from external systems. When these IDOC’s are processed in R/3 a
reduction event is not sent to APO.
Demand Reduction Work around
CIF interface to trigger reduction behaves Differently in Batch mode (via IDOC’s)
CIF interface works differently if the deliveries in R/3 is done in multiple steps.
Pick, Pack and Post and save in one step – reduction event is triggered.
Pick, Save, Pack, Save, Post in multi steps – reduction event is not triggered.
Work with SAP to resolve the CIF related reduction events.
Wyeth Overview
Why APO
Architecture
DP Design
SNP Design
Shortcoming’s and Workarounds
CIF and R/3 Integration
Summary
Agenda
Out of the Box APO - R/3 Link
Configurable to scope and requirements
Master Data and Transaction Data
Core Interface Function (CIF)
APO Master Data
APO
R/3 Batch or On-Demand
Master Data (FROM R/3)
• Locations
• Products
• Resources
Master Data
Production Process Model (PPM)
A Production Process Model (PPM) is a combination of a BOM and a Routing or the equivalent of a Master Recipe in R/3.
PPM defines the output materials (Finished Products), Input material (Raw Materials), Activities and Operations along with the Modes (Resources).
Finished GoodAdvil Tab 24’s pack
Bulk ProductAdvil Tablet
Finished BulkTablet Coating
Granulation
Tablet Compression
Packaging Line
Material Resources
SNP PPM Architecture
SNP PPM Load Process
Custom Interface Program Developed in-house to Read Production Version and Recipe Information from R/3 and Load it into APO via SAP Provided Standard BAPI.
Rollup Multilevel BOM’s into Single Level for Semi-finished Products
Plant and recipe level PPM customization
Using Standard SAP Provided Function Modules to Read Recipe and Production Version’s from R/3
Uploaded Daily via Scheduled Batch Process
Transaction Data (R/3 TO APO, APO TO R/3)
MPS (planned orders)
STO’s (purchase orders/requests)
International Sales Orders (where applicable)
Inventory (quantity, batch info)
Transaction Data
APO Planned Order (APO-1)
R/3 Planned
Order
( 031395 )
APO Planned Order ( 031395 )
APO
R/3Batch or
On-Demand
Initial:
Instantaneous
Changes:
Instantaneous
Transaction Data – Planned Order
Wyeth Overview
Why APO
Architecture
DP Design
SNP Design
Shortcoming’s and Workarounds
CIF and R/3 Integration
Summary
Agenda
Disadvantages of Current Model
• Does not provide pegging of materials to perform multilevel MPS planning
• Does not provide clear indicators of supply problems
• Does not define ownership or accountability for MPS
• Does not allow for inventory reduction as safety stocks at all planning levels are required to ensure coverage for poor planning
• Does not allow for accurate capacity level loading of manufacturing sites
Proposed Enhancements
• Implementation of new application in APO for Detailed Scheduling (PP/DS)
• Increase magnitude of change management required to redefine business processes and organization
• Considerations for the new Model
• Time required for training and development of new application
• Validation may be required for new application• Retrofitting of sites operating
Lesson’s Learnt
• Design of APO Processes should be consistent with
R/3 design
• APO Master data requires higher level of data quality
as compared to R/3
• A through test plan and execution is very critical
• Choose the right implementation Partner